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Why do cable companies punish long time customers?

by Greg Belfrage

Cable and satellite television are beginning to hemorrhage customers.

New figures show that 7.5 million households have ditched cable and satellite in favor of other services, such as Netflix and Hulu.

Among the chief complaints of cable consumers.... why do cable companies punish long time customers?

Read more: For millions of cord cutters, cable TV fades to black

Most cable companies increase your monthly rate after one or two years. Some companies also raise rates on your leased equipment.

I understand the thinking behind offering a low initial monthly rate in order to attract new customers.

However, the appearance of punishing long term customers is not lost on many consumers of cable and satellite. They're rightfully angry about seeing their rates climb substantially in order to subsidize service for newer customers.

How do you feel about cable and satellite television? Do you prefer pay services such as Netflix over cable television? Please share your comments below!

Greg Belfrage @belfrageshow is heard 6am-9am on KELO 1320 AM and 107.9 FM. Greg can be contacted at greg.belfrage@mwcradio.com