THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, December 23, 1994 TAG: 9412230472
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
LENGTH: Medium: 56 lines
Cox Cable Hampton Roads Inc., the region's largest cable-TV operator, said Thursday it will add The Disney Channel to the cable lineup of most of its 197,000 subscribers.
The change, effective Dec. 31, is a small windfall for the 10,000 Cox subscribers who now pay for Disney as a premium channel. They'll save more than $10 a month.
But almost all of the rest of Cox's customers will pay a little more with Disney in their regular cable lineup: approximately 20 cents extra per month in Norfolk, 38 cents more in Portsmouth and 87 cents more in Virginia Beach. The rate increases vary by city because of a complex federally regulated formula that takes into account such things as a city's median household income.
Franklin R. Bowers, Cox's vice president and general manager, predicted that the change will be a revenue wash for the cable system when it comes to current subscribers. But by adding Disney to its ``cable-programming services'' lineup, the operator hopes to attract as many as 4,000 new subscribers.
``What we're counting on is that there's so much value in this that more people will buy cable,'' he said.
Bowers said Cox's research shows that most of its existing customers are willing to pay ``a little more'' each month for Disney as part of their regular service. ``We think they'll see this as a positive thing.''
South Hampton Roads' two other main cable systems - TCI in Chesapeake and Falcon Cable in Suffolk - said they have no immediate plans to follow Cox's move. They charge $5.95 and $9.95 a month, respectively, for Disney.
Across the country, cable operators are looking for ways to boost subscribership in the face of growing competition from satellite dishes, wireless cable systems and, soon, telephone companies.
They have been hamstrung by tightening rate regulations. But the Federal Communications Commission recently eased up a bit. Starting in 1995, for example, cable operators will be allowed to charge as much as an extra $1.50 per month for new nonpremium cable-programming services - provided they add six new channels.
Cox and other Hampton Roads operators have said they plan to take advantage of those rules sometime next year. MEMO: The Price: Current Disney subscribers will save more than $10 a month.
Those who don't subscribe will see slightly higher bills. The
approximate monthly rate increase by city:
Norfolk - 20 cents
Portsmouth - 38 cents
Virginia Beach - 87 cents
by CNB