Spectrum is quietly planning a major pricing change

The telecommunications company is about to make some of its customers very unhappy.

Jun 25, 2024 - 19:30

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Spectrum is quietly planning a major pricing change

It is no secret that Spectrum is the victim of a dying trend. Because customers have ditched cable TV for streaming services in recent years, the company faces a profit hit as its TV subscriber pool shrinks.

Amid the loss in profits and customers, Spectrum hasn’t been shy about increasing the price of its services. In January, Spectrum increased the prices for Spectrum Internet Assist, its low-income internet program, by 25%. Its broadcast TV surcharge also rose from $23.20 to $25.75 a month, its fee for Advanced Wi-Fi increased from $2 to $7 a month, and its live streaming service, Spectrum TV Essentials, went up by $5.

Spectrum is planning to roll out another price hike as soon as next month. According to a post on Reddit (now deleted) by a user who claimed to be a Spectrum employee, prices for all internet and home phone plans will allegedly increase by $3. For legacy internet plans, the price will allegedly be hiked by $4. Also, a post on Reddit (now deleted), made by a user who claimed to be a Spectrum employee, prices for all internet and home phone plans will allegedly increase by $3. For legacy internet plans, the price will allegedly be hiked by $4, also, TV Select in certain states will increase by $3.

Spectrum confirmed with CNET that price increases will indeed take place in July but did not specify which plans would be affected or how much the prices will inflate.

Many users in the comment section of the Reddit post expressed their displeasure with the upcoming price increases.

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The move from Spectrum comes after its parent company, Charter Communications (CHTR) , revealed in its first-quarter earnings report that Spectrum lost 72,000 residential internet customers, 392,000 residential video customers, and 274,000 residential phone subscribers during the quarter.

Despite the recent losses, the company’s revenue for the quarter was $13.7 billion, a 0.2% year-over-year increase compared to the same period last year.

During an earnings call on April 26, which discussed the company’s first-quarter earnings, Charter CEO Chris Winfrey blamed a variety of factors for the company’s losses in its internet sector.

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“During the first quarter, our internet customer growth remained challenged by a low move and generally low activity environment, coupled with continued elevated competition, at least in the short term, and a small impact from fewer low-income connects due to discontinued ACP availability,” said Winfrey during the call.