Understanding Why TV Providers Can Increase Rates Mid-Contract

Understanding Why TV Providers Can Increase Rates Mid-Contract

At EmpireTV, we strive to provide our customers with transparent and reliable television services. However, some customers may wonder why their TV service costs can increase even while they are still under contract. The answer lies in the way TV providers negotiate with networks and the contractual terms that allow for price adjustments.


Why Do TV Providers Change Prices Mid-Contract?


TV providers like DIRECTV frequently renegotiate contracts with content providers (such as ESPN, NBC, or FOX) to continue carrying their channels. These contracts dictate the fees that providers must pay to broadcast these networks. When content providers demand higher fees for their channels, TV providers must either absorb the cost or pass some of it on to consumers.


The Federal Communications Commission (FCC) regulates certain aspects of cable TV, but it does not control the rates providers charge for service. According to the FCC’s guide on Regulation of Cable TV Rates, cable and satellite companies are allowed to set their own pricing, except in very limited situations. As a result, customers may experience rate adjustments when contract negotiations lead to higher programming costs.


For more details, you can visit the FCC’s guide here:

Regulation of Cable TV Rates - FCC


What Does the DIRECTV Contract Say About Rate Increases?


Customers who sign up for DIRECTV services should be aware that their contracts explicitly state that prices can change. According to DIRECTV’s Terms of Service for Institution Establishments, which also apply to commercial customers:


“SERVICE WILL BE PROVIDED AT THE RATES SET FORTH ON THE RATE CARD, WHICH MEANS ALL PRICES CONTAINED IN THESE SERVICE TERMS ARE SUBJECT TO CHANGE EVEN THOUGH CUSTOMER IS AGREEING TO A COMMITMENT PERIOD. IN OTHER WORDS, THE ACTUAL PER UNIT RATE FOR THE CHANNELS WILL INCREASE IF THE RATE ON THE RATE CARD INCREASES.”


This means that even if a customer is locked into a service term, their monthly cost can still increase due to external factors, such as programming costs.


Additionally, if a customer is receiving a promotional discount, that discount may no longer apply if they fail to meet the subscription requirements, which could also lead to a price increase.


At EmpireTV, we value our customers and work to provide the best possible TV experience. While price changes are sometimes unavoidable due to industry-wide negotiations, we’re here to help you navigate your service options and find the best solution for your needs.


If you have any questions about your DIRECTV contract or TV service pricing, feel free to contact our customer support team for assistance.


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