Let's NOT add HBO channels

I want to put my plug in for the Village’s NOT accepting Comcast’s latest offer for adding the HBO channels. I understand this will come up for vote this Friday (October 1) at the delegates meeting. The Executive Board by vote advises against it.

Comcast formerly offered the addition of eight HBO channels for $5.71 ($5.00 plus tax and fees) per month per unit. This was turned down twice by the delegate assembly. Now Comcast has sweetened the pot by saying they will give everyone the first five months of HBO free, plus throw in approximately $39,000 for the Village to use as it wishes.

This $39,000 looks good until you divide it by 7000, the approximate number of units in the Village, and realize it effectively amounts to only $5.57 per unit. Yes, the $39,000 can be used for anything, and people will say, “Boy, we sure could use it for this or for that.” But in terms of any further relief it would give to us re cable TV costs, it’s like Comcast is saying, “Okay, instead of giving you only the first five months of HBO free, we’ll give you six months.” This is a drop in the bucket when one considers that there are 9 years remaining in our 10-year Comcast contract.

Our 10-year contract provides for a 5% increase every year after the first year. Our monthly per-unit rate in 2010 was artificially low because when the 10-year contract was negotiated, we got a “signing bonus.” Some of this was set aside, on advice of attorney, in case we should need it to pay taxes later. A significant portion of the remainder was used to make the 2010 cable TV cost less for every unit. It was NOT used, spread out, to reduce the cost per unit for all 10 years of the contract.

If we sign onto the latest HBO offer, our cable TV cost per unit will undergo THREE increases in 2011: the increase from the artificially-low 2010 rate to the original, “true” 2010 rate; the HBO increase (after the “freebie” months); and the added five percent, which applies across the board to everything.

As pointed out at the Executive Board meeting, the old HBO channels ran the same movie for a month. This is so chintzy! So we get eight channels instead of three—of these, at least one is a Spanish channel, which is nice for the Spanish speaking but reduces the total to, at the most, seven channels for the English-only speaking.

As was further pointed out at the Executive Board meeting, our snowbirds (who constitute nearly half the Village) pay for cable TV year round, which is burden enough on them. Accepting the HBO offer will only add to their burden. When we vote, especially since most of them are not now here, I suggest we keep them in mind, and keep in mind also those who can barely keep their heads financially above water.

I think the Cable TV Committee did the best job it could in negotiating the new contract over a year ago and deserves our thanks. But I am for drawing the line at adding HBO. If I am wrong in any of the data presented here, please correct me. Thanks.