My monthly bill to Videotron passed a milestone this month, crossing the $100 barrier and sitting at $100.38 for my Internet and digital cable.
In April 2008, the bill was $94.74 a month.
Nothing has changed in the amount of service I get. The increase of $5.64 a month is due entirely to Videotron’s price hikes:
- Basic digital cable rose from $13.99 a month to $14.99 a month
- The price of 20 extra channels rose from $14 a month to $15 a month (it took effect when I was forced to swap a channel that Videotron didn’t want to pay for anymore).
- High-speed cable Internet rose from $58.95 a month to $61.95 a month
- And, of course $0.64 in extra taxes on that extra $5 a month I have to pay.
I could understand this if Videotron’s costs were going up and it needed the extra money to stay afloat, but according to Quebecor’s financial statements, Videotron makes a shitload of money. Like, $800 million in profit off $1.8 billion in revenue. Not only are those numbers higher than any other unit of the megacorporation, but the profit margin is way, way higher than Quebecor’s newspaper or broadcasting divisions.
Even if you take amortization and capital costs out of the equation, that leaves $165 million of profit for Videotron, more than enough to cover interest payments on its $1.8 billion debt.
I’m not that great with quarterly statements, so my numbers might be off here. But Videotron is making a heck of a lot of money off me and other cable subscribers.
No wonder Canada is considered to have the most overpriced broadband Internet in the developed world.