First cable companies insisted that people canceling TV service weren’t real. Then, as companies began noticing the last two quarters that people were actually canceling TV service due to cost, they began insisting those consumers really don’t matter all that much (which is only true when looking at the relatively massive size of some companies). The reality is that you can’t continue to impose rate hikes twice a year and not see some consumer response; the cable industry just doesn’t care because they feel these consumers are little more than a statistical blip.

The seriousness with which cable companies take consumer concerns about high prices is reflected in the way they continue to gleefully impose rate hikes on not only cable TV but DVR rentals and other services. When they do try their hand at the unfamiliar idea of lowering prices, the end result is often somewhat insulting, like Time Warner Cable’s new entry level cable tiers that offer no consumer value and are loaded with restrictions like the inability to bundle it with additional services, or even use a DVR.

Following in Time Warner Cable’s footsteps, Charter is illustrating what they think about cord cutters and those struggling financially, by sending out notices saying they’ll be hiking the price of, well, everything:

effective with your January Statement pricing will be adjusted for TV Install fees: New Primary Outlet Installation and Reconnection will be adjusted from $29.99 to $39.00; Change of Service Special Trip from $23.62 to $30.00; Additional Outlet with Initial Install from $9.87 to $9.99; Additional Outlet with Special Trip from $29.86 to $39.00; Labor Charge (formerly Hourly Service Charge) from $34.85 to $39.00; Inside Wire Service Call from $35.00 to $45.00; Ancillary Equipment Install with Initial Install from $5.99 to $9.99 and Ancillary Equipment Install with Special Trip from $27.15 to $35.00.

Public Access Fee will change from $0.52 to $0.55, Franchise Fee will change from $1. 13 to $1.17. Basic Service Tier from $12. 85 to $16.21 an increase of $3.36; Expanded Service Tier from $48.14 to $44.78 a decrease of (-$3.36). Customers in a promotion will not see this immediate price change; however, new pricing will apply at the end of your promotional period.

While Charter jacked up the price of essentially everything, they did reduce the price of their “Expanded Service” tier from $48.14 to $44.78. However, they actually increased the price of their entry-level “Basic” service tier $12.85 to $16.21. Why? As Charter customers in our forums correctly note, Charter was seeing more customers downgrading to their cheapest TV tier due to the economy, so they raised the price and lowered the price of the next level tier in the hopes they’d upgrade. Cable’s borderline disdain for cash-strapped customers couldn’t be any more clear, and it will be a historical cornerstone when the story of the inevitable (but glacial) Internet video (r)evolution is told.

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According to the latest J.D. Power and Associates Residential Television Service Satisfaction study, consumers are “notably less satisfied” with TV services than last year. That isn’t surprising given the relentless and often bi-annual rate hikes imposed by satellite, telcoTV and cable TV providers, which resulted in new and notable cord cutting last quarter. According to the study, Customer satisfaction with the cost of television service averaged 541 out of 1,000 in 2010, down 14 points from 555 in 2009.

The study measured satisfaction with TV services in four regions (East, West, North Central, South). AT&T U-Verse and Verizon FiOS ranked highest among TV providers, though the cable companies ironically rank higher on residential phone service.

Overall, customers continue to be annoyed with price hikes, which are courtesy of the endless dance of death between broadcasters (who continually hike programming costs) and TV operators (who pass these costs on to consumers along side hikes and new fees of their own). Consumer annoyance has been amplified by a sour economy, and mirroring recent concerns from the investment sector, JD Power notes that these hikes can’t continue indefinitely:

“It’s apparent…that TV providers must better communicate their price-value proposition, as customers are increasingly voicing irritation with the amount of their monthly bill. Seventy-four percent of customers who say they definitely or probably will change TV providers in the next year cite price as a major reason to switch.”

Consumers (for now) continue to pay for services despite these hikes, which is obviously good news for TV providers. But despite changing state laws to ease telcoTV entry into the sector (many times at the cost of consumer protections, local rights, and increased deployment), TV price reductions promised by lobbyists never arrived. Carriers instead engage in non-price competition, and focus on creating the illusion of value through added services that are often half-assed (see AT&T’s Hulu clone, for example).

The TV sector is begging for disruption and the entry of inexpensive, simple, a la carte Internet video options. There’s an endless flood of articles insisting that Internet video isn’t a threat, but that’s largely thanks to the fact that broadcasters are constricting TV streaming licensing for fear of cannibalizing TV revenues, resulting in limited alternatives for consumers. If these endless carriage disputes continue, cable operators may eventually balk, and broadcasters may open their eyes to alternative delivery opportunities.

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As noted the other day, Charter Communications has decided to add a new $1 “Broadcast TV Surcharge” to user bills, in order to offset the cost of network affiliates demanding higher carriage rates. Despite being simply the cost of doing business, the company is tacking the fee below the line to keep the advertised rate the same.

Worse perhaps, Charter tells Stop The Cap that “Charter Price Guarantee” and contract customers (who are supposed to have their rates locked) will also see the hike:

A Charter representative we contacted claimed the company will impose the fee on all customers, including those on contract, because of a clause in the terms and conditions which says, “The guaranteed price does not include the cost of installation and equipment, any applicable franchise fees, taxes or late fees, or costs for other ancillary services that you may order.”

Except one user e-mails us their latest bill with a notification of the new fee, and it claims contract customers and price guarantee customers won’t be impacted at least until their contract is up. We’ve reached out to Charter to clear this up but have a feeling Charter misspoke, given that promising customers a fixed rate then imposing a rate hike disguised as a below the line fee would be valuable fodder for class action attorneys.

Burying the cost of business in below the line fees so they can jack up consumer bills (but leave advertised rates the same) is bad enough.

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Verizon has unveiled their plans to join the cable industry’s “TV Everywhere” initiative – which involves offering paying TV customers (only) the ability to watch some paywalled content online. The industry believes the idea will help them prevent “cord cutters” – or those who turn to Internet video as an alternative to those now often bi-annual TV rate hikes. Verizon says their TV Everywhere offering will arrive in June, and will initially include access to all TNT and TBS shows – assume you subscribe to both FiOS Internet and TV:

FiOS customers who subscribe to both FiOS TV and FiOS Internet will be able to watch the programs on their personal computers or laptops – at home or away – using any broadband connection. Using their Verizon Online user names and passwords, FiOS customers will be able to access the online programming at either www.verizon.com/fiostvonline or soon-to-be launched TNT and TBS websites. After successfully completing their initial login, consumers do not need to sign in again for up to 30 days. Online programming from additional content providers also will be accessible via FiOS TV Online or the provider websites.

Of course Verizon doesn’t want to offer this content to just their Internet customers – lest they cannibalize their own TV revenues. According to the company, access to this content via mobile devices is something that’s in the works.

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It seems like roughly once a week now that AT&T executives inform everyone that there needs to be a change in wireless broadband pricing – and by change they really mean you’ll soon be paying more money for wireless data. Carrier executives and investors want all users paying more for data as smartphones and open networks erode VoIP and voice minute revenues, though the carrier likes to pretend the changes are necessary because current (very profitable) pricing isn’t sustainable. Speaking on the company’s earnings conference call yesterday, CFO Richard Lidner again hinted at the looming change:

…you’re dealing with a situation where when you look at your customer base, even customers that are using similar devices, there s huge disparity in the amount of data that they use and the amount of capacity they consume. And so when you look at all of those things as an industry I think it will influence how in the future the pricing models develop.

And as an industry what the industry has to do is develop models that are understandable by customers, that customers you know can understand and live with, and at the same time is fair to customers in terms of the amount of a somewhat limited resource that they’re consuming. And so that’s kind of the whole thing on data pricing and it will I suspect evolve as we go forward in the industry and it ll evolve as applications and devices continue to evolve and data traffic continues to grow.

Again, while AT&T continues to hint at the fact they’d like some kind of pure per-byte billing model (which many people would be fine with), what carriers actually wind up implementing are pricing models where all users are funneled toward higher prices. If AT&T introduced pricing that really was based on usage – the vast majority of their subscribers would wind up with lower bills, which of course they don’t want. At this point we wish AT&T would stop talking about it and introduce their dream pricing model so we can see exactly what the hell they keep hinting at (and prepare to take out that second mortgage if necessary).

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The other day it was noted that AT&T was getting ready to raise prices on U-Verse broadband, TV and VoIP customers (see the fine print on this U-Verse pricing page). Judging from some leaked AT&T talking points posted to BroadbandReports.com forums, AT&T is getting ready to hit regular DSL customers with some price hikes as well.

According to the leaked memo, AT&T says they’re making some “modest price adjustments” to both U-Verse and DSL pricing soon, and that users should be notified by mail of the changes. AT&T is currently offering “DSL Xtreme 6.0″ (6 Mbps), “DSL Xtreme” (3 Mbps) and “DSL Ultra” (1.5 Mbps) tiers – for the same price. Users who sign up now are given any one of the tiers for $24.95 for twelve months, after which the pricing reverts to $42.95, $37.95, or $32.95, respectively. Keep in mind of course that AT&T continues to test low caps and high per gig overages in two markets and may or may not expand those ambitions in 2010 as well.

Update: AT&T reached out to us to note that there will be a few price reductions on their higher end U-Verse tiers, and they’ll be eliminating their slowest U-verse tier:

On the U-verse High Speed Internet side, there are some changes for new customers, starting with decreasing the price of our higher-speed packages – Max (up to 12 Mbps) and Max Plus (up to 18 Mbps) – by a month across all of our 22-states. The Express (up to 1.5 Mbps) service will no longer be offered to new U-verse customers as of Feb. 21.

AT&T tells us the changes “reflect the greater demand and interest we’re seeing for higher bandwidth packages among our U-verse customers.”

Too bad “greater demand” is met only with “greater prices” and not “greater service”.

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According to the New York Times, Vivendi executives have agreed with General Electric in principle on a price to offload their 20% stake in NBC Universal, eliminating the final obstacle in Comcast’s planned acquisition of the media giant.

Recent leaks from inside the very leaky “secret” negotiations indicated that Vivendi wanted about $500-$900 million more than GE was willing to pay. The word now is that Vivendi is willing to part with their share for a cool $5.8 billion. As it stands, there’s a few loose ends to clear up, but the final deal should be officially announced by Thursday, according to chatty insiders.

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Charter Communications continues to battle with the companies lenders, who are trying to prevent the bankrupt cable company from exiting bankruptcy so they can appeal a court ruling approving the reorganization. Creditors have been fighting against Charter’s reorganization plan all summer and fall, primarily because they don’t like the pre-bankruptcy interest rates agreed to in the deal. “Hundreds of millions of dollars of additional interest and would put at peril the entire plan,” Charter attorneys claim in court filings.

Last week Charter executives indicated that a post-bankruptcy Charter would explore price hikes and metered billing for the company’s customers.

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