This is why TV service costs so much
CC Communications, as a rural, small provider of television
services, must walk a delicate line between the content subscribers
demand and the cost charged by the content creators for CC Comm to
provide that content to customers.
Fox News, channels 93 and 393 on the CC Communications Digital
Television Service, has unseated CNN as the dominant news channel. It
is, according to a recent New York Times article,
“the envy of the media industry for its popularity”” According to the
A.C. Nielsen Company ratings of television network viewership, Fox News
is the fourth ranked cable television service channel in prime time so
far in 2011.
That popularity creates the dilemma for CC Communications and all
other television service providers. As Fox News has gained in popularity
with viewers over the past 15 years, the rates it charges advertisers
has increased significantly. It is now one of its parent company’s
biggest profit centers.
And as its carriage contract nears renewal at the end of the year,
the channel has suggested it will charge companies likes CC Comm as much
as 400% more per customer versus its current per customer rate.
To put that in Churchill County terms, how would you react if the
local gas station suddenly charged you $15 per gallon instead of $3.75?
CC Comm must contract with every content provider on its system to
air that content. Those costs account for far and away the majority of
the rate CC Comm television customers pay each month, with a very small
additional amount to cover the equipment and personnel costs required to
keep the system operational 24/7/365.
CC Communications encourages you to voice your opinion to Fox News
about its proposed rate increase. Contact the network toll free at
1-888-369-4762 or by email.