From: dewey@vpdbox.austin.ibm.com (Dewey Coffman)
Subject: Austin CableVision Raising Rates 1/23/93
Date: Sun, 24 Jan 1993 19:55:11 GMT
Distribution: na
Reply-To: dewey@vpdbox.austin.ibm.com
Organization: IBM, Austin, TX. US of A.


	Here in Austin, there's a on-going discussion about the local
	provider Austin CableVision(ACV) not carrying the SciFi and other 
	channels, they also don't rebroadcast in stereo, and they claim
	they don't have any free "bandwidth" and to upgrade their equipment to
	do all this "would cost too much money(millions)". So what do they
	do, after much complaining to them about these problems, they raise 
	their rates, right before the reregulating goes into effect.

	I would be interested in comments on these numbers compared to other
	cities and tactics we can use to stop this increase. A mass boycott
	is being considered, I think 25% of the 150,000 subscribers would
	have to cancel some or all of their subscription to get any attention.
	-dewey
=============================================================================
		From Austin American-Statesman, Jan 23, 1993

		  "Cable Company raises rates, alters channels."

	Summary: 5% increase for full-lineup subscribers(not counting
		 premium channels) rate will increase from $21.90 a month
		 to $23 a month.
		 Basic service, channels 1-13 will increase to 20 channels
		 and the rate will drop from $12.50 a month to $10.95. This
		 affects 4%(6000) of Austin CableVision(ACV) subscribers.

	Commentary: They're getting their hits in before the Cable Reregulation	
		    Act prohibits them from Doing this. The decrease for
		    Basic service will MORE than be offset by the increase on
		    the rest. They've moved Showtime down in the low range,
		    CMT(Country music down there), MTV out of there, replaced
		    things like Nikelodean(sp?) with more of the damn Access
		    channels in the low range.
		    
	Summary:  ACV claims the rate increase is needed to cover higher costs
		  for program production, they used this same reason for a 10%
		  increase in April 1992. Tom Rutledge, President ACV claims
		  programming cost rose 9% last year.

	Commentary: Gee, that's a 15% increase in less than a year. And 
		    inflation was what, 4% over the last year?
		    Let's do a little math here, 150,000 subscribers

			146,000 * $1.10 increase == $160,600 more a month
			  6,000 * $1.55 decrease == $  9,300 less a month
						    ========
						    $151,300 more a month or
						  $1,815,600 more a Year

		    This is on top of the "revenue" we know about, we don't
		    know about "advertising, pay for carrying Home Shopping"
		    but we don't know what there expenses are either.
			146,000 * $21.90 == $3,197,400.00
			  6,000 * $12.50 == $   75,000.00
		Premium channels?		$
		Pay Per View?			$
		Apts, that offer free cable	$
			included in this?   ==============
					    $ 3,272,400.00 a month (at least)or
					    $39,268,800.00 a Year(at least)
		
-- 
Dewey Coffman dewey@ctci.com  All opinions expressed are unrelated to reality.
CTC, Inc.			  "That voodoo stuff don't do nothing for me."
"If you fail to plan, plan to fail" 	PANIC: waiting for a good idea.
"He who relies on USENET as his only info source is both an idiot, and a fool."
Newsgroups: rec.video.cable-tv