The municipal cable and broadband business is still projecting a profit this year, but officials are eyeing a cable television price increase for customers that could take place this summer.
Norwood Light Broadband Manager Darryl Hanson told selectmen last night he is likely to recommend in the coming weeks a 5 percent hike in cable television prices, which he estimated would cost the average subscriber an extra $3.15 a month.
Currently cable rates range from $10.50 a month for a 25-channel basic package to $61.95 a month for a 129-channel digital package. High definition channels and other premium channel packages carry additional fees.
Hanson said it would be the first price increase since 2006 and it is needed to keep up with rising costs of programming.
Selectman Bill Plasko said nobody likes talking about rate increases, but said competitors seem to do it more often than the municipal company.
"We haven't had an increase since 2006, so I suspect people knew it was coming," Plasko said.
Hanson said the reason for the potential increase is that the cost of providing cable channels continues to rise, and said it costs the company roughly $5,000 each time it wants to add a new high definition channel.
"High definition is in huge demand and we want to be able to offer those services," Hanson said.
Selectmen Chairman Mike Lyons agreed high definition offers are a big lure for existing and potential customers.
"You can get spoiled very quickly watching high definition," said Lyons. "Once you get used to it, you want to watch everything in high definition."
But the good news, said Hanson, is that the business projects to remain profitable despite increased competition.
Verizon Communications received a cable license from the town last fall, joining Comcast and Norwood Light Broadband in offering cable, broadband and telephone services in town.
Hanson said last night Norwood Light Broadband continues to lose cable customers to the competition, but he said it is making up for the lost revenue with increased sales in other areas.
Hanson said sales of Internet phone service have increased 26 percent since last October, while high definition sales have been up 4 percent in the last two months and even pay-per-view sales increased 22 percent last month.
"The people who are staying with us are purchasing more and more services," Hanson said.
Additionally, eight more large businesses have signed up for broadband service, which Hanson said will generate an additional $200,000.
"All these things have helped offset the loses in video customers," said Hanson.
Daily News staff writer Brian Falla can be reached at 781-433-8339 or at bfalla@cnc.com.
