'Consumer can't win' as costs of TV services rise

The year's off to an ominous start for television viewers hoping to get a break on rising costs. Network owners want more cash from cable, satellite and phone companies. That could pressure distributors such as Comcast, DirecTV and Verizon to raise monthly fees or drop channels.

"The consumer can't win," says Leo Hindery of investment firm InterMedia Partners. "The cable operators can't win. And some cable programmers who deserve to win will lose."

Time Warner Cable and AT&T may be bellwethers: They raised TV service fees more than 7% for 2010, perhaps "in anticipation of higher costs," says Bernstein Research analyst Craig Moffett. By contrast, Comcast's TV rates are up less than 5% — close to the recent industry average. Moffett says it may have wanted to avoid upsetting federal regulators who will review its planned acquisition of NBC Universal.

What's pressuring prices: 1) Broadcasters want to be paid. 2) New 3D channels. 3) Upgrades. 4) Sports.