CableTV Providers Charging Secret Downgrade Fees

CableTV customers looking to reduce their monthly bills by switching to a less-expensive programming package may be in for a rude surprise: Some operators will charge a one-time fee of up to $6 for the privilege, according to Variety.

Among the biggest providers, Comcast and Time Warner Cable confirmed that they have such policies in place. These fees, which the companies don’t disclose on their websites, appear mainly designed to discourage customers from trying to pay a lower monthly rate for TV.

Comcast, the biggest pay-TV provider in the U.S., charges a fee of $1.99 to $5.99 depending on region for customers who switch to a less-expensive programming package, according to a company rep.

TW Cable, meanwhile, charges $4 for programming downgrades in certain areas, mostly in the western part of the U.S. (including Los Angeles). The operator calls this an “addressable change of service fee,” a Time Warner Cable spokeswoman said.

The fees are illustrative of why many cable TV customers are frustrated with the industry, and why the biz is at risk of seeing more of them cancel as new and cheaper options come to market.