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Update #2 – Time Warner Cable Announces Yet Another Rate Increase: DVR Prices Up in Selected Cities

Phillip Dampier September 9, 2010 Consumer News 18 Comments

For the third time this year, Time Warner Cable is increasing prices on some of its cable products in upstate New York.

Some customers in western New York are receiving notification that effective this October, the price for the cable company’s digital video recorder (DVR) box is increasing by 18 percent from $10.95 to $12.95 per month (remote control included). Time Warner Cable charges different prices for DVR service, depending on what each local market will tolerate and how much competition the company receives.  A representative of Time Warner Cable in Buffalo told us the company was trying to “standardize rates” across Upstate New York.  If true, residents in Buffalo who already experienced one recent rate increase for DVR service will get a big shock if rates are “standardized” in the same direction Rochester and Syracuse are experiencing.  More details below.

After multiple contacts, we’ve managed to sort out what we believe the increases to be.

Buffalo:  Verizon FiOS and the Buffalo economy have conspired to keep prices considerably lower in Buffalo than other upstate cities.  Buffalo residents pay just $9.95 a month for DVR service and will experience no increase in rates… for now.  If the Buffalo representative was correct about rate standardization, residents there will eventually see a $3 a month rate hike for DVR service.

Rochester: Effective October 15th, DVR service will increase $2 a month from $10.95 to $12.95, an 18 percent increase [Update 9/20 — Many areas are being notified on their bill it is $1, not $2 — see update below.]  Each additional DVR box will cost $11.95.  Originally, we were told the increase was a dollar a month.  Not so fast, says our reader Tim who tipped us off to the story.  He lives in a Rochester suburb and his September bill contained a notification the rate was increasing two dollars a month.  The bill was correct and the original representative we spoke with was wrong.

Syracuse: Residents of the Salt City are in the same boat as residents in Rochester.  On October 15th, DVR service there also increases by two dollars a month, from $10.95 to $12.95.  Apparently Verizon FiOS has not made as much of a competitive difference in Syracuse, probably because it is not widely available yet.

Ironically, if you register for TWC's MyServices control panel and shop the cable company's services online, you can grab a DVR box free for 12 months.

In February, Time Warner broadly increased rates on its cable and broadband services.  In September, rates for broadband-only customers also increased.  The latest increase will not affect customers on promotions or bundled packages that include a DVR.

Our reader Tim says he’s not going to stand for it.

“Time to trim another item off of my TWC bill,” he writes. “I already quit HBO, I guess the DVR is next.”

The Time Warner Cable representative we spoke with only learned about the rate increase “an hour ago.”  She told us, “We’re probably going to get some calls on this.”

Ironically, Time Warner Cable is giving away a year of free DVR service to customers in the northeast using its recently introduced “My Services” control panel and online shopping section.

Our advice to those who don’t want to pay the increase:

  • Complain to Time Warner and ask for a credit for the difference in price for a year.
  • Turn in your DVR box, wait a week and then take advantage of their “online only” offer, if available in your area, for a year’s free service. (Registration for MyServices required.)
  • Cancel something else in your package that will make up the difference.  Are you still watching HBO or Showtime?  Many TWC systems charge $13.95 for HBO and $10.95 for Cinemax and other pay channels.  That’s up to $167 a year per premium network!  Many HD subscribers might still be paying for a Digital HD Tier that used to include HDNet and HDNet Movies.  Now you’re paying an extra $4.95 a month for MGM HD, Universal HD, Smithsonian, and the cattle auctions on RFD-TV.  Not watching those?  Drop that tier and save $60 a year.  If you still want commercial free movies, consider Encore’s Movie Pack instead of HBO, et al.  Encore only charges $5 a month for seven theme-based movie channels.

Believe the bill -- for residents in the city of Rochester and adjacent suburbs, the rate increase turns out to be $1 for DVR service, despite repeated assertions from TWC reps back on the 9th).

[Updated 3:30pm ET — We have been on the phone with Time Warner Cable reps in Buffalo, Rochester, and Syracuse a total of eight times to re-verify some of the information for this story after the first representative we spoke with gave us conflicting information.  Subsequent contacts also gave us a range of responses from “I’ve worked here four years and am telling you there is no price increase” to “Unfortunately we are increasing the price and I don’t know why.”  We’ve updated and corrected the details below.]

[Update #2: 9:15am ET 9/20 — I pulled up a copy of my October statement and discovered a dollar increase in the town of Brighton for DVR service, which triggered another call to TWC this morning to learn why the information I was given on the 9th was different from what the bill showed.

The latest explanation is that different areas are subject to paying different amounts.  Apparently.

For folks in the city of Rochester and adjacent suburbs, “less is more,” so the dollar increase is slightly better than the two dollar increase.  I just wish representatives were better trained to answer simple questions accurately.]

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jr
jr
13 years ago

It’s not worth it anymore to have a cable subscription. Cable executives make more in 2 weeks than their customers make in a year

Another Tim
Another Tim
13 years ago

Ouch, reader “Another Tim”? I only put that because there was already a Tim in the discussion thread to which I was responding. I guess I should have used ‘another’ handle, eh?

But after reading what is in this article, I wonder who you talked to? Here is the statement copied/pasted from my bill dated yesterday for service in a western Rochester suburb, “Effective October 15, 2010 the rate for DVR Service will increase to $12.95 per month for the first DVR box and $11.95 per month for any additional DVRs.” My current DVR charge is $10.95.

Charlie Dennett
Charlie Dennett
13 years ago

Well, I don’t think there’s anything else I can cut. I have the watch and surf (or whatever it’s called) package with the DVR. No extra pay channels. Luckily, I can still afford this, although it really get PO’d when they raise their rates. I guess they have to pay for all those Disney/ESPN channels I have no interest in.

What really torques me is the crappy DVR software. Several seconds to change a channel or advance a line in the on line guide. Worse than poor user interface.

What can we do here in the Rochester, NY area?

Another Tim
Another Tim
13 years ago

Well I guess I have 5 weeks to clear the content off my DVR (watch or copy to another device) and figure out how to view content I record on my computer on the televisions in my house.

Oh when I called to confirm the rate increase, the rep told me “$12” and had to be pressed that it was, in fact $12.95. I wonder if she was coached to round-off the 95 cents so it sounded like a smaller increase?

Tim
Tim
13 years ago
Reply to  Another Tim

“…figure out how to view content I record on my computer on the televisions in my house”

There are several devices currently out in the market to do this, WD Live for instance. Boxee Box is coming out in November and will support a lot of different formats both video and audio.

“…digital video recorder (DVR) box is increasing by 18 percent from $10.95 to $12.95 per month (remote control included).”

I find the, “remote control included”, funny. Almost like they are saying, “Hey you are lucky we aren’t charging extra for this thing!”

Smith6612
Smith6612
13 years ago

Recording TV using your PC is easy, especially since you can get PCI/PCI-E TV tuners for cheap and anything running Windows XP Media Center/Windows Vista/Windows 7, or running 3rd party software can record to your hard drive. I have the Buffalo, NY Winter Classic from 2008 sitting on my hard drive thanks to the fact that Windows Media Center is capable of recording TV. Interface is not sluggish, looks great, and Windows Media Center is capable of controlling set top boxes along with having a guide. That is truthfully all people need. Just a PC with a TV tuner and… Read more »

Neil
Neil
13 years ago

So with TWCs DVR service, are you paying monthly for server space, or is the data stored locally on the box? I just can’t figure out why: A) If it is stored locally, why is there a monthly charge and why does it need to be increased? B) If you are paying for server space, why is there so little room for content? When I had a DVR with Time Warner, I remember having to delete programs off of the unit fairly frequently. Much more frequently than I should have if the info is stored on a server I am… Read more »

Mazakman
Mazakman
13 years ago
Reply to  Neil

The DVR’s have a hard drive that you are storing your recorded shows on. There is a monthly charge because somebody has to pay for all of these boxes that they hand out.

Ron Dafoe
Ron Dafoe
13 years ago
Reply to  Mazakman

I call bull on all of the providers charging you a monthly rate for setup boxes (DVR and non-DVR). The cost of the DVRs are not that much. They are well underpowered computers at this point – and there is no compeition in the setop box at all – so they can do whatever they want. They do not have to charge so much, the customers allow them to charge that much. I don’t even like paying the $5 a month fee for DirectTV – and no, I did not shell out upfront costs for it. The upfront cost of… Read more »

Tim
Tim
13 years ago
Reply to  Ron Dafoe

I agree with you. To me there is no reason why they should increase prices on their DVR’s since that is a fixed cost item for them. It cost them nearly nothing for a customer to have this. When I did have cable, I refused to pay rent on a box for Digital Cable. I opted instead for analog cable which only required that I hook up the coax directly to the tv. Also, it worked great for me, because I have a DVD Recorder with a 500GB HDD and a TV Guide Scheduling GUI. Currently, they do not allow… Read more »

Terry
Terry
13 years ago

TWC seems to be running a business model where their path to increased profits is increased prices rather than increased value and lower prices which would likely bring in more customers. The cable industry (and the mobile phone industry) is approaching the point where market penetration is so high that the likely hood of large numbers of new customers signing up is over. Pretty much everyone that wants the product has it. They now have to think about ways of continuously increasing profit. but instead of really thinking about how they sell their product they are stuck in a “We… Read more »

Ron Dafoe
Ron Dafoe
13 years ago
Reply to  Terry

I agree. You can blame whoever you want – cable companies or the content companies – either way the cost of watching TV is quickly getting out of control. I am seriously thinking about dropping it all together at some point. My DirectTV bill is $100 a month and I only pay it at this point in time for convience. Some people pay upwards of $160 or more. 3 years ago, my bill was $110 with every pay station that DirectTV had. HBO, SHO, MAX, STARZ, etc. Now I have none of that at all. When the bill started reaching… Read more »

Terry
Terry
13 years ago
Reply to  Ron Dafoe

About 9 years ago I found myself unemployed. 10 months years later I was back to work but after about another year I just couldn’t afford the cable. So I dropped it., but I kept my internet. I discovered that I didn’t miss the cable at all. At the time I lived too far away to get a TV signal without a big antenna and I was renting. so I just went without TV all together. Best 5 years of my life. There are several great shows beyond network TV, but they are not worth the expense of cable to… Read more »

Larry
Larry
13 years ago
Reply to  Ron Dafoe

We cut the cable cord from Time Warner in January, and we don’t miss it much at all. We were faced with paying $175 a month for digital cable, standard roadrunner, and digital phone with the international calling plan. No premium channels. We dropped everything but standard roadrunner. You still get the local channels over the coax with roadrunner, but we’ve switched to an antenna – we get more channels and a better picture without the compression TW uses. We’ve actually found that we prefer to get TV shows via Netflix, and don’t mind waiting a season for the DVD… Read more »

Chris Rzatkiewicz
Editor
Chris Rzatkiewicz
13 years ago
Reply to  Ron Dafoe

I moved out of my parents house to Brighton, NY about 2 years ago. The only thing I needed from TWC was Road Runner. Since then I have a HTPC working for youtube and Hulu, plus I can stream all the Netflix I want through my PS3. When my $30 / month promo ended after the first year and went up to the normal $45 / month, I was reminded again of the lack of competition in Rochester, NY. Try pulling that in Verizon territory Buffalo and Syracuse. What Rochester, NY really needs is a full out campaign to get… Read more »

anonymous
anonymous
13 years ago

Couldn’t cut the cord if I wanted to, it’s included in my rent, which another thing the cable co.s do now, offer mass deals to complex owners to give it out to every tenant they have.

Another Tim
Another Tim
13 years ago

I hadn’t been back to this to look at comments or updates for a while, so I didn’t know that they backed off the $2 increase until I received a TWC postcard in the mail yesterday starting out, “Dear Valued Time Warner Cable Customer,

The DVR rate adjustment notification message on your current statement is incorrect……”

It goes on to say the amount will be $11.95 ea. for all DVR and people on promo-pricing will keep it for the duration of the promo and the obligatory, “We apologize for the error.”

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