In a disheartening turn of events for Spectrum customers in Buffalo, New York, the telecommunications giant has announced yet another round of rate hikes, adding to a series of increases over recent years. Commencing on January 30, Spectrum cable subscribers will find themselves shelling out more money for their services.
Breaking down the impending price adjustments, Spectrum’s mandatory broadcast TV surcharge is set to climb from $23.20 to $25.75 per month. For low-income households relying on Spectrum’s affordable internet option, Spectrum Internet Assist, the monthly cost is due to surge from $19.99 to $24.99. The monthly HD Box rental fee is not spared either, jumping from $10.99 to $12.50. Meanwhile, the Advanced WiFi charge is slated to rise from $5 to $7 monthly.
Spectrum TV Essentials subscribers will experience a hike from $24.99 to $29.99 per month. Additionally, Spectrum’s Entertainment View and Latino View packages are not exempt, each facing an increase from $12 to $15 monthly.
Attempting to explain these changes, Spectrum released a statement, asserting that the company is transitioning to a new model that prioritizes providing customers with enhanced value and a broader array of choices. According to Spectrum, the ongoing escalation in programmer rates compels them to pass these additional costs onto consumers, contributing to an industry-wide surge in expenses.
Jessica Fischer, Chief Financial Officer of Charter Communications, Spectrum’s parent company, expounded on the cable industry’s predicament during a recent webcast. Fischer stated that continual increases in programmer rates present a challenge to the video space at large. She described it as a vicious cycle where programmers escalate their prices, leaving companies with no alternative but to transmit these cost increases to consumers.
Simultaneously, Spectrum is offering an alternative to its traditional cable services with the introduction of the Xumo streaming box, priced at $5 per month or $60 for ownership. However, there’s a catch for potential Xumo users: subscription to Spectrum internet services is a prerequisite.
Attempting to elucidate the benefits of Xumo, Fischer highlighted its capacity to offer seamless access to various products, enabling customers to access content through video or direct-to-consumer channels. Despite this offering, Spectrum customers must also subscribe to Spectrum internet services to avail themselves of Xumo.
It’s important to note that Spectrum holds a dominant position as the most widely available TV provider in the Buffalo area. With rates steadily climbing over the years, numerous Spectrum customers have voiced their dissatisfaction, leading some to sever ties with traditional cable and opt for streaming alternatives. This shift underscores the growing trend among consumers to seek more cost-effective and flexible alternatives in the face of escalating cable prices.