The expectation is that you will pay more for your television subscription in 2019. Although the price has risen sharply in recent years, this does not seem to stop for the time being. We’ll tell you in this blog why the prices keep rising. Even if you bought the most goedkoopste smart tv you will still pay the same amount of a person that bought the 65 inch 4k tv last month. The increase will be notified to all customers of most television providers in the Netherlands.
Price Increase Television Subscription
The reason why a price increase of your television subscription is coming is the higher distribution fee that your TV provider must pay to the NPO, but also to commercial channels from the RTL and Talpa group. We wrote about this earlier in our blog Increase retransmission fee FOX Sports .
The NPO, but also RTL and Talpa receive less and less advertising income. This is therefore the main reason why they demand a higher distribution fee.
Higher Distribution Fee For Npo, Rtl And Talpa Group
The NPO falls under public channels and receives a contribution from the government every year. They supplement this amount with the income from advertising. The government has decided to cut back on public service broadcasters, they receive 60 million less, which is offset in the first year by a one-off contribution of 40 million. Due to the declining income from advertising, the public broadcaster cannot compensate for this itself. The government made the first move by giving the tip that the NPO can negotiate a higher distribution fee and that is what they are doing now. At the moment, € 0.42 per subscription is paid to the NPO. The expectation is that this could double in the long term.
How Do Television Company’s In Holland Cope With This Negative Profit Margin
Unfortunately, television providers cannot do much about this. The media law requires that every television provider that sells more than 100,000 subscriptions is obliged to offer the national public TV and radio channels in the cheapest television package. The tax money that the government has cut seems to be paid again by the consumer.
And then there is the RTL and Talpa group. Television providers are not obliged to offer these channels to their customers, but in view of the importance of these channels for many Dutch people, the supplier can hardly help but ask for a higher distribution fee. Just like with the NPO, revenues from advertising at RTL and Talpa are falling. They try to compensate for this with a higher distribution fee.
Why Are Advertising Revenues Falling?
For a long time, TV channels noticed little of the problems in the advertising market. This has since changed. Consumers no longer only watch linear television. Streaming services such as Netflix and Videoland are popular. Use is made of television in a different way. The customer more often chooses to first look at a tablet or telephone and only then choose the TV or radio. The channels notice this in the ratings, which are getting lower. And as a result, advertisers are again opting to spend less on advertising on television, which results in a fall in advertising revenues.
Watching TV illegally
The ever-increasing costs for television mean that there are consumers who choose to watch television illegally. There are possibilities to do this, but it also has a risk. Of course it is not legal, but you can also lose a lot of money. You often pay a certain amount in advance. When it happens that illegal viewing is stopped in the meantime or the quality is not good, you lose your money. That makes cheap suddenly become more expensive.
Internet Is Also Becoming More Expensive
You will not only pay more for television, but the internet will also become more expensive. Internet providers are busy innovating. Delta now offers a subscription with an internet speed of up to 1000 Mbps (for more information read our blog Super fast internet at Delta ). Ziggo is hard to do on the same road and KPN continues to roll out fiber optic internet , you read our blog continues KPN rollout fiber optic internet. Beautiful developments that are no superfluous luxury in these times of increasing use of the internet. All these innovations and developments come with a price tag that ultimately ends up with the customer.