Citing rising content costs, both Dish and DirecTV have revealed that many of their subscribers can expect rate increases in 2014. Earlier this year Time Warner and CBS had a public feud over increased content fees which resulted in Time Warner dropping CBS stations from their line-up for a brief period of time.
According to Twice the proposed rate increases will average between $2 and $5 for Dish and DirecTV subscribers. DirecTV is believed to be paying 4.4 percent more to content providers. As a result, subscribers of the “Entertainment Package” can expect to pay an additional $3 per month. Subscribers of the “Premier Package” should expect their wallets to be $5 lighter.
Dish subscribers will also face a similar dilemma. Dish Network which is seeing their content costs rise 5.5% will also be forced to pass on the increased costs to their customers. Subscribers of the “Smart Pack” will have to cough up an additional $3 and most of Dish’s other packages will see a $5 rate increase. Dish has stated that subscribers of the Welcome plan, and America’s Choice 120+ plan will not see a rate hike.
It would appear that cable and satellite tv providers are trapped in a downward spiral. As they are forced to increase their rates, more and more people are cutting the cable / satellite cord in favor of services like Netflix and Hulu. You have to believe that each rate increase that they pass on to consumers is just another death blow to TV as we’ve come to know it.