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.