For those who loathe big cable, a monolithic Silicon Valley giant with a $392 billion market cap has always been seen as a better alternative for video and broadband services.
But just like everyone else offering pay-TV products, Google Fiber (NASDAQ: GOOG) is being forced to raise prices because of increased programming costs.
The tech giant confirmed to DSLReports that it's upping the price of a 1 Gbps connection and 150 channels to $130 a month, starting March 10. Existing customers will continue paying the old rate of $120 a month.
"Since we kicked off signups for Google Fiber in Kansas City two years ago, we've offered our Gigabit+TV product to residents at $120/month," a Google spokesperson told DSLReports. "In that time, we've continued to invest in our Gig+TV offering, improving our programming, and offering new benefits (e.g., more TV boxes per home, latest devices)."
Speaking at a trade event in October, Google Fiber chief Milo Medin said content costs were the biggest "impediment" to his company's services, surpassing the burdens of laying down all that fiber and government regulation.
"It is the single biggest piece of our cost structure," Medin said.
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