Verizon Hikes Prices
By Steve Donohue -- Multichannel News, 11/26/2006 7:00:00 PM
The newcomer to the video arena will ring in the new year with consumer price increases. Verizon Communications plans to raise the rates for its most widely distributed programming packages by 7.6% in January.
Beginning Jan. 8, the price for the 200-channel FiOS TV Premiere package will increase from $39.95 to $42.99 monthly for new customers in New York, New Jersey, Texas, Massachusetts, California, Florida and Maryland, Verizon media relations senior manager Cliff Lee said last Monday. New customers in Virginia will see the price increase go into effect Jan. 14, he added.
Lee said existing FiOS customers will continue to be charged the initial $39.95 monthly price Verizon put in place when it launched the service in 2005.
“It's our way of thanking our customers that initially signed up for us. Most of them are cable converts,” he added.
But existing FiOS customers could eventually see the same price increases, Lee said. Unlike its cable competitors, Verizon charges the same rate for the service nationwide.
Lee said the price increases in the FiOS TV Premiere package reflect an “increased value for the service,” including the addition of more than 20 channels.
Earlier this month, FiOS reached an accord with Cablevision Systems-owned programmer Rainbow Media Holdings for national networks AMC, WE, IFC and Fuse, video-on-demand services Mag Rack and sportskool; and regional sports networks Madison Square Garden Network, FSN New York and FSN New England.
In March, the telco had complained to the Federal Communications Commission about the negotiating tactics of Cablevision, which competes with Verizon in a number of New York area markets, regarding the aforementioned RSNs.
Verizon is also increasing the prices for its basic-cable and premium-channel packages. Its FiOS TV Local package, which includes local broadcast channels, will increase from $12.95 to $12.99 monthly for new customers in January.
The rate for premium channels will increase $1.04 monthly. Verizon currently charges $11.95 monthly for a package that includes Starz, Showtime, Encore, The Movie Channel, Flix and Sundance Channel; $14.95 monthly for either HBO or Cine­max; and $24.95 monthly for HBO and Cinemax combined.
Verizon also plans a $3 monthly increase for an adult subscription video-on-demand product.
FiOS customers in Virginia received notices about the price increases last week. Customers in remaining FiOS states will be notified in early December, according to Lee.
| FiOS's New Rates | ||
|---|---|---|
| Current | Jan. '07 | |
| Premiere | $39.95 | $42.99 |
| Local | $12.95 | $12.99 |
| HBO | $14.95 | $15.99 |
| HBO/Cinemax | $24.95 | $25.99 |
| Starz/Showtime | $11.95 | $12.99 |
| Source: Verizon, Multichannel News research |
||
No related content found.
VIEW ALL GALLERIES
