![]() ![]() In fact, both Dish Network and DirecTV experienced major blackouts earlier this month in dozens of markets across the country ( click here for more information). Nationally, there have been over 1,100 broadcast station blackouts, including sports services, since the beginning of 2015, and most have involved either Dish Network, AT&T-DirecTV, or YOUTUBE. This problem extends far beyond just Mediacom, in fact, all cable, satellite, and streaming video companies regularly find themselves threatened with similar shutdowns. Several years ago, Mediacom introduced a Local Broadcast Station Surcharge to bring more transparency to these rate increases. ![]() In light of the ongoing COVID-19 pandemic, we feel these hefty increases are especially uncalled for and unjustified. Since these costs will ultimately be absorbed by the hard-working residents in Mediacom’s footprint, we have repeatedly communicated to the station owners that their outrageous financial demands are unacceptable. ![]() While Mediacom strives to keep programming costs to a minimum, local broadcast station owners continue to demand a huge per subscriber price increase over previous contracts. When a cable, satellite, or video streaming company refuses to agree to these huge increases, the station owners routinely resort to removing their channels from the channel lineups, forcing a disruption of station programming known as a “blackout.” In recent years, many cable, satellite & video streaming companies have found it increasingly difficult to negotiate with the station owners and the new “normal” in these negotiations have become the channel owners trying to force cable, satellite & video streaming companies to pay unreasonable rate increases during contract renewals. The fees we pay to retransmit local broadcast stations like ABC, CBS, FOX, and NBC are by far our fastest - growing wholesale cost component. Just like the price of oil affects the price of gas at the pump, the price of television service is impacted by the wholesale cost of the channels we carry. Much like your local gas station, Mediacom is the retail distributor of products that we purchase at wholesale. Almost all the negotiations take place behind the scenes, and customers are rarely aware that the negotiations are even happening. Each year, Mediacom routinely works to renew many of the agreements we have with the owners of the television stations we carry. ![]()
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