Home » Consumer News »Editorial & Site News » Currently Reading:

Time Warner Cable Lite: Stripped Down Basic Cable Package Tests in NYC, NE Ohio

Phillip Dampier November 18, 2010 Consumer News, Editorial & Site News 16 Comments

Time Warner Cable is among the first cable companies in the country to recognize there is still a Great Recession for many of their middle class customers.  After major cable companies lost more video subscribers than they gained for the last two quarters in a row — a first — the nation’s second largest cable operator has developed a budget-minded basic package to meet new economic realities.

Time Warner Cable’s TV Essentials Package will deliver about 50 channels of basic networks and local broadcasters to subscribers in two test markets starting Monday — New York City and northeastern Ohio around the cities of Akron and Cleveland.  New York residents will pay $39.95 for the package, $29.95 in Ohio.  But both packages will be sold to customers for only one year as a special promotion and are missing many popular networks.  Despite that, Time Warner Cable spokeswoman Maureen Huff says the packages represent significant savings for consumers.  The retail value of the package is $50 per month.  Several cable analysts suspect the package is revenue neutral for Time Warner, which hopes to hold onto customers and put them back on traditional cable packages as economic conditions improve.

But for those contemplating Essentials, compromising over the likely loss of several networks is required.  Sports fans in particular will need to look elsewhere — all of the expensive basic cable sports networks, including ESPN and MSG are not included.  News junkies will have to live with several C-SPAN networks, CNN and Headline News.  Fox News and MSNBC are excluded.  Several Viacom-owned cable networks are also not covered, notably Comedy Central.  TNT isn’t either.

In fact, no HD networks of any kind are provided, free video on demand is not included, and customers will be banned from obtaining DVR equipment to record shows for later viewing.  Also, customers participating in this promotion are prohibited from receiving any other discounts from the cable company for broadband or phone service, so it is narrowly tailored to appear only to current analog basic/standard service customers.

Although Time Warner Cable CEO Glenn Britt said, “the public would like to have more choice and have the option of paying for less programming,” it’s clear the cable company has also developed the package in a way to protect its more expensive Standard Service from being cannibalized by customers looking to save money.  The lack of HD programming and DVR availability, in particular, will deliver a clear message to many subscribers the package involves uncomfortable sacrifices.

Some of the networks dropped from the Essentials package are not even that costly to Time Warner Cable.  Comedy Central and MSNBC are much cheaper than other networks in the package.  The loss of the former is likely to keep younger households unhappy, and Time Warner would likely have been accused of bias had it included MSNBC’s left leaning nighttime lineup while excluding right-wing Fox News (which is more expensive than CNN and MSNBC combined).

Everything about the Essentials package screams “retention offer” — marketed quietly to customers intending to depart from the cable company for economic reasons.  With 2011 rate increases forthcoming, it is logical this type of package will be offered as a last resort.  But don’t expect Time Warner to heavily advertise it to current customers, where it could trigger a downgrade avalanche.

0 0 votes
Article Rating
16 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Tim
Tim
13 years ago

Worthless package. Bundle up all the stations nobody watches into a package that costs too much for the minimal content.

Tim
Tim
13 years ago

Tim here too! LOL I would have to agree with the guy of the same name. And no HD? I could see channels exclusively on cable but for locals too come on. I really hope WebTV takes off because these cable co’s really need a reality check. People need to cancel their cable and get an antenna and get free OTA HD local channels that also transmit in 5.1 DD audio! I get around 30 stations in my area and they come in crystal clear, not like analog. With the new media boxes that turn an ordinary TV into a… Read more »

James R Curry
James R Curry
13 years ago

Barred from using a DVR?

What if the customer already owns a DVR? Can Time Warner stop them bringing their own equipment?

What a joke.

James R Curry
James R Curry
13 years ago

Ahh, that makes sense.

That being said, I wonder if the channels are analogue or digital?

If I were in one of the trial markets, I’d love to call Time Warner, order this package, and then request CableCARDS. I’m guessing the CSRs wouldn’t have a clue…

Smith6612
Smith6612
13 years ago
Reply to  James R Curry

Good chance they are Analog channels.

FrankM
FrankM
13 years ago

This package, along with the “family values” packages on dish network, are just a way to have an unsuccessful, lower-priced package and draw conclusions that “a la carte would never work”.

Meh. set your prices, and give me a la carte. If the chicken littles of the world really think that all channels will be $5 each, and low-viewed networks will disappear — they’re something called the free market that will take care of that.

Tim
Tim
13 years ago
Reply to  FrankM

Absolutely, and the competition would be good for the consumer in the end. Also it would stop a lot of these networks going to cable companies for more money ,year after year after year, driving up prices not for the cable companies but the end consumer. Networks don’t want it because they would have to lower prices to get viewership. Cable companies don’t want it because they wouldn’t make as much as they are now gouging consumers.

Karen Fedrow
Karen Fedrow
13 years ago
Reply to  Tim

Fabulous!!! We all have different TV viewing needs. I have been asking Comcast for an alternate package for years. We do not use the expensive sports channels and feel that offering various packages would certainly help many families keep their cable service.

Cheers!!!!!!!

Scott
Scott
13 years ago

Still too expensive for what you’re getting, plus you’re arbitrarily restricted and now allowed to get HD or a DVR… This isn’t a service offering from them that they intend for customers to save money with, it’s only an offering to capture new low-tier customers that may sign-up who don’t already have cable service. Also, this bundle can’t be combined in a bundle deal with internet… The cable companies still don’t get it, and they never will. They’re going to keep tightning their grip till there’s nothing left and blame companies like Netflix for stealing their bandwidth, for customers pirating… Read more »

Loons In June!
Loons In June!
13 years ago

“But not passing through HD, even for local stations, is petty.”

Are the local stations not available through Clear QAM?

Tony
Tony
13 years ago

When will they wake up and let video go the way of audio. I want to buy alacarte! How about we pay per channel? Get only whT yoand get only what you want? Don’t want sports, don’t buy them. Want Fox and not CNN, knock yourself out. Want a movie channel and not the History Cannel, go for it.

Get it, I wonder how many customers will show up for that flexibility? Buy channels instead of bundles like MP3’s instead of whole albums.

Choice is not some bundle picked by someone who has no clue what I like.

Margaret Thornton
Margaret Thornton
12 years ago

If you wanted to give us what we want you would give us a la carte service. I love my DVR but will be giving it up because I am being forced to buy down to what I can afford and that doesn’t include a DVR. I probably use about 15 to 20 of the 300 channels I have just so I can have the DVR that I have gotten hooked on. I also would love a no sports line-up.

William The Great
William The Great
12 years ago

Time Warner just plain sucks.. I do not have their service nor will i ever have their service..Had it once and every bill i got was for a different amount..Never the same once..Nothing ever changed on my end but something sure did on their end..They think they have us by the short hairs as they are the only provider in my area.. But they forget the Internet also includes all the shows i want to watch..So they can shove cable up their hairy behinds until they get decent pricing and service!!

Search This Site:

Contributions:

Recent Comments:

Your Account:

Stop the Cap!