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Comcast (CMCSA) to Hike Monthly Fees by 3.8% from 2017
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According to a recent report by TV Predictions.com, Comcast Corp. (CMCSA - Free Report) , a leading cable multi-service operator (MSO) in the U.S., recently announced plans to increase the monthly price of its TV, Internet and video services, by an average of 3.8% nationally. The effective date of the fee increases will however vary from one market to another, with some areas seeing price hikes from as early as Jan 1, 2017 and others at a later date.
We note that on Dec 5, U.S. telecom and pay-TV behemoth AT&T Inc. (T - Free Report) had also announced a price hike for eight of its nine base packages of DirecTV from $2 to $6 per month. The new rates will be effective from Jan 22, 2017.
Revised Pricing Plans
The ‘Broadcast TV Fee’ will increase from $5 to $7 a month, while the fee that covers Regional Sports Networks will be up from $3 to $5 a month. Combined, that's a change from $8 to $12 per month. Hence, Comcast will receive an extra $48 per year from each of its customers.
The cable MSO has already started notifying its customers and city officials about its price increase plans through letters and recent bills, along with a rate sheet that shows the new charges for various services. For any further details related to taxes, fees and surcharges on their bills, customers can visit www.xfinity.com/pricechanges.
Customers in Lake Township and Michigan have been notified that the Digital Starter and Digital Preferred video plans will each increase by $1 per month. Some services in Michigan will however cost less. The one-time charge for professional installation will decrease from $75 to $60, and the charge for other in-home service visits will decrease from $70 to $60. The charge for a self-installation kit will rise from $9.95 to $15,though. But not all cities apparently will see a hike in these packages.
For Central New Jersey residents, the digital adapter outlet fees will increase from $3.49 to $5.49 per outlet, and fees to reactivate the TV service will go up from $1.99 to $3.50.
Officials in Montqomery Country, MD and some other markets have been notified of increases in several Comcast ‘Double Play plans’ as well from Jan 1. For instance, the Internet Plus plan will now cost $82.95 per month compared with $77.95 earlier. Fees of Internet Pro Plus with Showtime will increase from $81.95 to $86.95 per month while that of Internet Pro Plus With HBO plan will increase from $84.95 to $89.95 per month. The Premier XF Double Play package will increase from $182.95 to $187.99 per month. The cost of Preferred XF Double Play package will increase from $144.95 to $149.85 per month.
Similar hikes of $5 per month will also hit many of the Xfinity video monthly packages. For instance, price of the Performance plan will rise from $69.95 to $74.95 per month; the Performance Pro plan will go up from $79.95 to $84.95 per month; and the cost of the Blast plan will rise from $82.95 to $87.95 per month.
Price Performance
Shares of Comcast have had an impressive run in the past one year. Year to date, Comcast’s growth of 22.28% has outpaced the Zacks categorized Cable TV Market industry's growth of 16.35%.
We are impressed with Comcast’s increased investments in network and technological upgrade to better serve customers with high-speed Internet service, WiFi hotspots, more video across viewing screens and the recent integration of DISH Network Corp. ‘s Sling TV into its cloud-based managed video delivery platform, X1. But the cost of doing business is also on the rise as programmers charge more to carry their network. As a result, prices for certain services and fees are going up.
Comcast’s strategic move is common from a cable operator’s perspective, as they charge different prices in different markets due to marketing and competitive reasons. But the cable MSO was recently sued by its customers. Comcast was accused of falsely advertising lower-than-actual prices and then using poorly disclosed fees to increase the amount paid by cable TV customers by a proposed class-action lawsuit. Charter Communications Inc. (CHTR - Free Report) – the second largest cable MSO in the U.S. after Comcast – also faced a similar law suit in November.
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Comcast (CMCSA) to Hike Monthly Fees by 3.8% from 2017
According to a recent report by TV Predictions.com, Comcast Corp. (CMCSA - Free Report) , a leading cable multi-service operator (MSO) in the U.S., recently announced plans to increase the monthly price of its TV, Internet and video services, by an average of 3.8% nationally. The effective date of the fee increases will however vary from one market to another, with some areas seeing price hikes from as early as Jan 1, 2017 and others at a later date.
We note that on Dec 5, U.S. telecom and pay-TV behemoth AT&T Inc. (T - Free Report) had also announced a price hike for eight of its nine base packages of DirecTV from $2 to $6 per month. The new rates will be effective from Jan 22, 2017.
Revised Pricing Plans
The ‘Broadcast TV Fee’ will increase from $5 to $7 a month, while the fee that covers Regional Sports Networks will be up from $3 to $5 a month. Combined, that's a change from $8 to $12 per month. Hence, Comcast will receive an extra $48 per year from each of its customers.
The cable MSO has already started notifying its customers and city officials about its price increase plans through letters and recent bills, along with a rate sheet that shows the new charges for various services. For any further details related to taxes, fees and surcharges on their bills, customers can visit www.xfinity.com/pricechanges.
Customers in Lake Township and Michigan have been notified that the Digital Starter and Digital Preferred video plans will each increase by $1 per month. Some services in Michigan will however cost less. The one-time charge for professional installation will decrease from $75 to $60, and the charge for other in-home service visits will decrease from $70 to $60. The charge for a self-installation kit will rise from $9.95 to $15,though. But not all cities apparently will see a hike in these packages.
For Central New Jersey residents, the digital adapter outlet fees will increase from $3.49 to $5.49 per outlet, and fees to reactivate the TV service will go up from $1.99 to $3.50.
Officials in Montqomery Country, MD and some other markets have been notified of increases in several Comcast ‘Double Play plans’ as well from Jan 1. For instance, the Internet Plus plan will now cost $82.95 per month compared with $77.95 earlier. Fees of Internet Pro Plus with Showtime will increase from $81.95 to $86.95 per month while that of Internet Pro Plus With HBO plan will increase from $84.95 to $89.95 per month. The Premier XF Double Play package will increase from $182.95 to $187.99 per month. The cost of Preferred XF Double Play package will increase from $144.95 to $149.85 per month.
Similar hikes of $5 per month will also hit many of the Xfinity video monthly packages. For instance, price of the Performance plan will rise from $69.95 to $74.95 per month; the Performance Pro plan will go up from $79.95 to $84.95 per month; and the cost of the Blast plan will rise from $82.95 to $87.95 per month.
Price Performance
Shares of Comcast have had an impressive run in the past one year. Year to date, Comcast’s growth of 22.28% has outpaced the Zacks categorized Cable TV Market industry's growth of 16.35%.
We are impressed with Comcast’s increased investments in network and technological upgrade to better serve customers with high-speed Internet service, WiFi hotspots, more video across viewing screens and the recent integration of DISH Network Corp. ‘s Sling TV into its cloud-based managed video delivery platform, X1. But the cost of doing business is also on the rise as programmers charge more to carry their network. As a result, prices for certain services and fees are going up.
Comcast’s strategic move is common from a cable operator’s perspective, as they charge different prices in different markets due to marketing and competitive reasons. But the cable MSO was recently sued by its customers. Comcast was accused of falsely advertising lower-than-actual prices and then using poorly disclosed fees to increase the amount paid by cable TV customers by a proposed class-action lawsuit. Charter Communications Inc. (CHTR - Free Report) – the second largest cable MSO in the U.S. after Comcast – also faced a similar law suit in November.
These events may have been the reason behind Comcast carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>