Ever Wonder About the Fees That Make Up Your Monthly Local TV Bill?
Because we’re a hometown business, we are invested in our community, our employees and our customers. With Network fees dramatically increasing and impacting your monthly bill, we wanted to give you a backstage pass to better understand the economics of the TV business.
Your monthly bill has two big cost buckets:
Cost to Provide Service
This includes installation costs, maintaining and upgrading our network infrastructure and normal business expenses, such as employee salaries, rent and power. The bulk of this portion is used to build a better Internet and entertainment experience.
All Satellite and Cable providers (TV providers) pay each Network owner (Programmer) a fee for every household that receives a particular Network – regardless of whether anyone in the household actually watches it.
- These Network fees have increased dramatically at 3½ times the rate of inflation over the last 15 years. 1
- Five media companies control 90% of the Networks, and while we work hard to keep these costs under control, they continue to use their power to demand more money. 2
- Programmers are securing long-term contracts with significant guaranteed Network fee increases, regardless of how many people watch.
2Ben Bagdikian, The Media Monopoly