Local media warns residents to look first before opening the door to potential trouble

As many as five men wearing Verizon jackets have been ringing doorbells in the Bradenton, Florida area seeking entry into residents’ homes claiming to be service or sales representatives.  Police are concerned an unsuspecting resident may admit the impostors unaware of their likely criminal intentions.  Bright House Networks, the area’s cable operator, has also faced phony representatives peddling its products.

With increased competition between phone companies and cable operators for your telecommunications business, many providers hire third party door-to-door sales personnel to promote services, especially when new service options become available.  Verizon uses 20/20 Companies, an Ft. Worth, Texas-based door to door marketing firm to sell its Verizon FiOS fiber to the home service.  20/20 Companies promises its clients “a thorough, national background check and a 10-panel drug screen” for all of its sales representatives to “protect the client, the brand, and, most importantly, the customer.”

Still, consumers may not be aware of what to consider before opening their doors to uninvited knocks.  It has happened to me when a fake Frontier Communications “representative” knocked on my door a few years ago with lots of personal questions but no answers:

1. Cable and telecommunications companies do not make unscheduled service calls.  If a representative claims they “detected a problem,” tell them you will call the company yourself to schedule an appointment.
2. If the doorbell rings and you weren’t expecting anyone, consider simply ignoring it.  At least verify to your satisfaction the identity of the visitor before opening the door or even interacting with him or her.
3. Sales representatives and other company personnel should have clear, unambiguous, professionally-produced identity badges.  A shirt sticker or generic jacket with a logo on it doesn’t come close.
4. Trust your instincts.  If something doesn’t seem right, it probably isn’t.  Don’t hesitate to contact police.  Many communities require all door to door sales personnel to have a peddler’s license on file with the local town or city government.  If they don’t, police can charge them.
5. Alert your neighbors.  You may have been aware enough to avoid a potential problem, but an overly trusting neighbor might not.  They’ll appreciate you looking out for them.

Consumers concerned about this type of door to door sales activity should contact service providers and tell them you don’t appreciate at-home intrusions and that you hope the company will modify its marketing practices to discontinue unscheduled marketing visits.  Instead, suggest they send sales teams only to homes that specifically request an in-person visit, with an appointment.

WTSP-TV in Tampa warns southwestern Florida residents about fake employees trying to gain entry into local residents’ homes.  (3 minutes)

http://www.phillipdampier.com/video/WFLA Tampa Fake Verizon Employees 2-9-2010.flv

WFLA-TV in Tampa tells viewers to ask for ID before opening a door to a telecommunications company employee.  (2 minutes)

Road Runner Turbo is getting a makeover in Indianapolis.  Faster speeds are forthcoming, but at a higher price.

Bright House Networks currently provides Road Runner Standard customers with 7Mbps/512kbps.  Getting better speed requires the purchase of Road Runner Turbo at a new price of $15 per month.  In return, Bright House is boosting Turbo speed customers to 20/2Mbps service, with PowerBoost temporarily accelerating downstream speeds up to 30Mbps.

In most markets, Road Runner Turbo is priced at $9.95 per month, but it’s five dollars more in Indianapolis.

Bright House headquarters in Indianapolis

Will the increased price for Turbo become a trend in return for faster speeds in other markets?

Ironically, the associated public relations campaign sells customers on signing up for Turbo to enjoy a better online video experience.

“Building the excitement toward the opening games of the Olympics, we’re able to add to the enjoyment of and access to entertainment and information with these exclusive new products and features,” said Wayde Klein, vice president of marketing and customer operations for Bright House Networks Indiana. “With our speed boost to Road Runner Turbo, customers will be able to take advantage of some of the highest Internet speeds available, making video viewing over the Internet an even better, real-time experience.”

The upgrade in broadband service is part of Bright House’s effort to improve service in central Indiana.  The cable operator is also adding several new high definition networks and introducing the “Start Over” feature allowing viewers to return to the start of a program in progress.

Bright House is licensed to provide Road Runner service, a brand more commonly associated with Time Warner Cable.

Liberally borrowing from ABC’s Extreme Makeover: Home Edition, and those home improvement shows on HGTV, Verizon has been producing their own “home technology makeovers” for infomercials airing in different Verizon service areas, designed to pitch their fiber to the home FiOS product line. It’s a non-threatening introduction for those not so technology-inclined, but love the premise of home makeovers.

The Reyes family of Clearwater, Florida is the latest to receive a Verizon-inspired makeover this March, which will air later as an infomercial in the Tampa Bay area.

The family was chosen from those who auditioned for the role during the past two months.

Verizon traditionally sets up each show by illustrating the challenges busy families face when trying to work with outdated electronics.  It’s also a great chance to bash the competition, suggesting their cable reception isn’t so great, their calls to 911 are broken up and unclear, and their Internet is slow and generally lousy.  At this point, Bright House Networks, Tampa’s predominate cable company, is supposed to be squirming, because you can bet these families aren’t complaining about Verizon phone service or Verizon DSL.

After the family leaves the home, a bandwagon of Verizon workers and self-described “Design,” “Tech,” and “FiOS”-Gurus show up and replace their obsolete equipment with Verizon’s family of products, ranging from FiOS for their television, phone, and broadband needs, and some extra goodies thrown in from Verizon Wireless for mobility.  Add some new electronics and some room makeovers and the job is complete.

When the family returns, they are suitably impressed with Verizon’s products (which they presumably obtain for free, at least for awhile), the company throws a block party for the entire neighborhood, and everyone goes away with a positive feeling about the company.

“I like the concept of the show, how one company can bring so much happiness to a family just by changing their home technology,” said Jessica Reyes. “It may seem simple to some people, but I know this will have a huge impact on our family.”

See?

Actually, it’s a brilliant execution of marketing to those who don’t suddenly start drooling at the mere mention of FiOS in their neighborhood.  For plenty of Americans, a decidedly non-technical demonstration of the technology products Verizon sells is a much better way to sell service to those who think fiber is a matter of diet, not home entertainment.

Verizon’s promotional reel for My Home 2.0 shows home technology makeovers, and can’t resist taking a few pokes at the competition’s service. (1 minute)

Americans can look forward to additional rate increases in their monthly cable bills on top of the usual annual rate increases already underway as broadcast stations demand, and get, cash in return for cable carriage.

Just a few days after Time Warner Cable and Bright House Networks concluded their precedent-setting agreement in principle with News Corporation’s Fox network, other networks and television stations owners are lining up to get their piece of the action.

The cable operators’ agreement to pay an estimated 50-60 cents per month per subscriber for the right to put Fox-owned local broadcast stations on the cable dial will likely be used as the starting point for negotiations between other cable operators like Comcast, Cox, Cablevision, and Charter when their agreements with stations and broadcast networks come up for renewal.  If every major broadcast network and station owner gets the same 50-60 cents per month, or more, those costs will certainly be passed on to subscribers.  That’s just the beginning says David Joyce, media analyst for Miller Tabak , a Wall Street trading firm.  Joyce believes annual increases demanded by networks could easily be in the 7-8 percent range.  Bloomberg News predicts that could add up to more than $5 billion dollars a year.

Bloomberg News interviews David Joyce, a media analyst who predicts annual 7-8% increases for retransmission consent. (3 minutes)

Sinclair owns stations in these communities

There is nothing new about these kinds of disputes — just the sums involved.

Sinclair Broadcast Group owns television stations serving nearly 22% of the United States (mostly Fox affiliates), and has contentious negotiations for retransmission consent agreements with Mediacom, a cable operator serving mostly smaller cities in the midwest and south.

The two companies just agreed to an eight day extension of their negotiations over a new agreement to replace the one that expired December 31st.

“We just decided we wanted to avoid, with such important events coming up, the disruption that it would cause customers,” Sinclair General Counsel Barry Faber said. “I don’t expect there will be a further extension. We recognize we’re giving up, perhaps, a small amount of (negotiating) leverage, but we don’t think it’s very much. Our channels are worth so much more than we are asking for.”

Sinclair has been willing to force its stations off Mediacom cable systems in the past to prove its point.  But another experience with angry sports fans upset over the interruption of Fox programming was apparently sufficient to give negotiations another week.

Bloomberg News explains how Rupert Murdoch bullied his way into an agreement with Time Warner Cable and Bright House Networks that could change the landscape of broadcast television forever.  (4 minutes)

http://www.phillipdampier.com/video/Bloomberg Sports a Major Factor of Cable Dispute 1-4-10.flv

The ‘Holy Grail’ of cable programming essentially boils down to silly ball games.  Sports programming is one of cable’s biggest expenses, yet few would dare to alienate sports fans, as this Bloomberg report explores.  (2 minutes)

After much sound and fury, and plenty of media attention, Fox programming remained on Time Warner Cable and Bright House Networks systems through the New Year’s festivities, as the three companies reached “an agreement in principle” to make cable customers ultimately pay more for the right to watch Fox broadcast stations and cable networks.

The wide-ranging agreement covers all of Time Warner Cable’s more than 12 million subscribers as well as 2.4 million Bright House customers.  The deal encompasses Fox-owned, Fox-affiliated television stations covering nearly four million Americans and Fox’s sports and entertainment cable networks seen nationwide.

The major point of contention between Fox and the two cable companies was the fee for carriage rights to Fox television stations.  Known as “retransmission consent,” cable operators must obtain permission from television station owners before they are allowed to put them on cable lineups.  For years, broadcasters were happy just getting clear pictures to cable’s extended reach into suburban and rural communities.  But over the years, broadcast interests have sought cash payments from cable operators in return for that consent.

Leveraging their popularity, station owners feel they have plenty to room to negotiate higher payments, and the cable industry has tried to avoid setting any precedent for cash payments, fearing a new benchmark set with one station owner will soon become the asking price for every other major station in a community.  Cable operators have traditionally signed agreements that launch station or network-owned cable channels instead of large direct cash payments, but Fox’s game of hardball suggests those days are over.

While none of the companies involved would disclose the terms of the final agreement, industry analysts suggest the parties met somewhere near the middle of their respective asking price.  Fox had demanded $1.00 a month per subscriber for each of its affiliated television stations, while Time Warner Cable suggested a quarter per month per subscriber was a fair offer.  Most agree the final deal is in the 50-60 cent range, not including any extras Time Warner Cable threw in on the cable network side.

Chase Carey

All of the parties represented at the negotiating table were pleased with the outcome.

“We’re pleased that, after months of negotiations, we were able to reach a fair agreement with Time Warner Cable — one that recognizes the value of our programming,” News Corp. president and COO Chase Carey said in a press release. Time Warner Cable president and CEO Glenn Britt adds that his company is “happy to have reached a reasonable deal with no disruption in programming.”

Amusingly, Bright House Networks’ own press release is a mirror copy of Time Warner Cable’s — only the names have been changed:

“We’re pleased that an agreement has been reached with no disruption in programming for our customers,” said Steve Miron, Chief Executive Officer, Bright House Networks.

Who wasn’t represented at the negotiating table?  Customers.  Ultimately, whatever amount agreed to, it will be added to customers’ bills in future rate increases.

If other networks seek similar terms, cable operators may have to fork out as much as $5 billion a year — and would likely pass the cost on to subscribers, Craig Moffett, an analyst at Sanford C. Bernstein in New York told Bloomberg News.

“The broadcast networks are really struggling to find a viable business model,” Moffett said. “They’re looking at the cable networks that make money both on advertising and the money that the cable operators pay them and saying, ‘We need a dual revenue stream to survive too.’”

CNBC reports on the deal reached just in time to prevents sports fans from missing out on their New Year’s football games on Fox. (2 minutes)

Time Warner Cable and Fox are now into their final day of negotiations before the agreement expires governing Fox-owned affiliate stations and cable networks.

One thing that the dispute has accomplished is increasing media attention on both companies and a spotlight on the business models of television programming and distribution.  It used to be so simple – television programming would air on broadcast television, enjoy massive audiences and the lucrative ad revenue that comes from having top-rated programming.  Cable networks couldn’t survive on the much smaller ad revenue they earn from their smaller audiences, so they charged cable operators a small fee for every subscriber who could watch their channels.

With the advent of TiVo and other digital video recorders, online viewing, and the audience erosion that comes from both, what worked for more than 50 years didn’t work so well anymore.  Time-shifting viewers no longer felt committed to watching live television, satisfied with being able to watch when they want and fast forward past the increasing amount of advertising television stations crammed into programming.  With broadband, viewers could download or stream their favorite programs online, often for free and with limited (if any) commercials.  Cable networks that used to be content running older syndicated programming, movies, and low budget documentaries and specials began creating their own original programming, often just as good as anything the networks produced.  Subscription fees charged programmers increased accordingly to help finance these shows.

Today, some cable networks are coming close to rivaling the viewership of broadcast networks’ lesser-watched programming.  If the economic downturn didn’t challenge the advertising industry, the ongoing loss of network television viewers would have accomplished the same thing – lower ad rates for ABC, CBS, NBC, and Fox.

At the heart of the debate is a new discussion about whether “free over the air television” is a sustainable business model.  Networks like Fox evidently don’t think so, which is why they seek payment from the pay television industry, be it cable, FiOS, U-verse, or satellite.  Since the majority of Americans now watch television through one of these services or through their broadband connection, there is plenty to be made from such payments.  Of course, those costs are passed on to you.

The result?  You are now paying for “free television.”

The hardball game between Fox and Time Warner Cable will be replayed often between the other networks and programmers and pay television companies.

Today’s video reports include another update from the business side of the story, several additional reports from impacted Fox stations, and basic education about what television antennas are all about.

New York Times reporter Brian Stelter reports the two parties remain “pretty far apart” from an agreement in this report from Bloomberg News. (2 minutes)

CNBC discusses the business side of the Time Warner Cable-Fox dispute, and now Sen. John Kerry (D-Mass.) has put himself in the middle of the dispute as well. (1 minute)

http://www.phillipdampier.com/video/KXAN Austin Cable dispute could turn off bowl games 12-31-09.flv

In Austin, KXAN-TV reports Time Warner Cable has been telling Texas viewers they can watch most of the Fox Network programming on Hulu for free.  Some Austin residents are sick of hearing about the dispute and are abandoning Time Warner Cable for DirecTV.  “Football is everything in Texas,” say some who are watching the dispute with concern. (3 minutes)

http://www.phillipdampier.com/video/KDFW Dallas Watch FOX 4 without Time Warner 12-31-09.flv

Some local Fox stations are teaching their viewers how to receive their stations if Time Warner Cable no longer carries them on their lineup.  KDFW-TV in Dallas went to Best Buy where they’re only too happy to sell antennas and digital converter boxes to Metroplex residents. (2 minutes)

http://www.phillipdampier.com/video/WOFL Orlando Fox Orlando Affiliate Teaches Viewers About Antennas 12-30-09.flv

WOFL-TV in Orlando spent part of the newscast teaching people what a TV antenna is.  For many under 30, television viewing has always been through cable or satellite, never over-the-air, so the concept of rabbit ears is a new one for some. (1 minute)

Lots more to watch below the page break.  Click the link below to continue!

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A creative attempt by two Floridians to keep local Fox affiliates from being dropped on Bright House Networks by asking a judge for a temporary restraining order failed late Wednesday when the judge effectively tossed the case on jurisdictional grounds.

Circuit Judge Maura Smith in Orlando initially said she was referring the matter to federal court to determine which court had jurisdiction to issue a temporary restraining order.

“I wish I could make everybody happy,” said the Orange County Circuit Judge.

Orlando attorney John Morgan requested the court order Fox to keep WOFL-TV, Orlando’s Fox affiliate, on the Bright House Networks cable lineup, at least until after the Sugar Bowl.  Morgan filed the case on behalf of two local sports fans Thomas Moore, a fellow attorney and Richard Anderson, the city manager for Apopka, outside of Orlando.

Fox’s own counsel requested Smith send the case to federal court instead, and she agreed.  Later Wednesday, U.S. District Court Judge Gregory Presnell sent the case back to circuit court, where it was effectively tossed out.

The legal arguments were hardly a Perry Mason moment.  Morgan argued football fans would be harmed if the game wasn’t televised on Bright House Networks.  Fox’s attorney argued they could watch with an antenna or drive to a local bar or restaurant televising the game.  That brought a response from Morgan questioning where exactly someone would purchase rabbit ears, and that driving to a local establishment to watch the games could be risky because of increased drunk driving on New Year’s Day.

WESH-TV in Orlando reports the judge tossed the case because it would have required her to rule over a private business matter.  (2 minutes)

http://www.phillipdampier.com/video/WOFL Orlando Lawsuits Against Bright House and Fox 12-30-09.flv

WOFL-TV in Orlando interviews the plaintiffs outside of court today about their case and goes over the dispute one more time with central Florida viewers. (5 minutes)

It's your fault our service doesn't work.

Central Floridians are angry and annoyed with a broadband provider that is more adept at randomly assigning blame than actually resolving serious service problems.  Bright House Networks customers in the Orlando area first noticed their Road Runner service began slowing down around December 23rd.  Web pages took minutes to render, if they finished at all.  Important e-mail was inaccessible at times for many accustomed to a much faster online experience than the bad old days of dial-up.

Problems worsened by Christmas Day, and despite complaints from across the entire region, Bright House technicians spent their time assigning blame elsewhere.  In a classic case of buck passing (Deluxe Goldman-Sachs Home Edition), the cable operator initially began blaming customers for the problems, claiming everything from virus infections to bad routers.

“The technician said he was certain it was either my router or my Windows XP had become hopelessly corrupted with viruses, and I might have to reformat my hard drive and start all over,” writes Stop the Cap! reader Kris.  “Two days before Christmas was the worst possible time for something like this to happen, and it was clear Bright House’s biggest priority was to get me off the phone as fast as they could.”

As customers abandoned all hope of using their broadband accounts on Christmas Day, calls continued to pour into Bright House customer support.  Even the media got involved, noting the cable company adopted a “mum’s the word” strategy on their website, saying nothing about the increasingly maddening service problems.

By then, company officials must have figured out blaming the customers wasn’t working too well, and they blamed Christmas instead.

“I was told heavy Christmas web traffic was responsible,” said Jed, a Stop the Cap! reader.  “They told me with everyone getting new computers and laptops and other electronics, it might be awhile before things got back to normal, perhaps even as late as next week when people returned to work.  Considering I was getting less than 56kbps service at this point, I wasn’t buying it.”

WFTV-TV in Orlando is credited for being among the first in the media to shine a spotlight on Bright House Networks’ failure to address their ongoing Internet service problems (2 minutes)

As the weekend wore on, enterprising customers learned it was probable a DNS server or other connection point further up the Internet was probably causing all of the trouble.  Yet that theory was repeatedly denied by Bright House, who was forced to begin issuing statements to the local press, still blaming others for broadband woes.

“Some Bright House Networks Road Runner Internet customers are experiencing intermittent problems accessing various websites,” Bright House spokesman Brian Craven wrote. “The issue is a result of off-network congestion. BHN engineers are working to resolve the issue.”

Customers were also on the receiving end of that old chestnut ‘the exaflood,’ the theory that the Internet is being crushes by a global traffic flood worthy of Noah’s Ark.  As comments piled up on Orlando media’s online message boards, customers traded the excuses coming from Bright House, wondering why the company couldn’t spend as much effort actually fixing the problems with Road Runner on Xanax.

Finally, several days later, company officials admitted the problems were coming from a lot closer to home — theirs, not yours. Brian “It’s Congestion” Craven was back with a revised statement:

“A hardware problem experienced by a Bright House Networks vendor caused some Bright House Networks customers to experience intermittent problems accessing some Internet websites. The issue was resolved at 11 p.m. Sunday. Bright House Networks Internet service was never down.  The situation only affected some customers’ ability to access certain Internet sites.”

Some websites like Google, for instance.

So it wasn’t your fault after all.  It was one of their “vendors.”  Customers pondered when they would be able to receive service credit for several days of useless broadband.

The answer?  Never… tough luck:

“Customer credits will not be given because at no time was Internet service down. It was a latency issue in which some customers experienced intermittent problems accessing certain websites. The issue was caused by a hardware problem experienced by a Bright House Networks vendor,” Craven added.

Customers began lighting the torches.

WOFL-TV in Orlando reports on growing customer rage over the lousy customer service being provided by Bright House Networks. (1 minute)

News accounts noted some customers disappointed by the company’s callous response were returning the favor by unceremoniously dumping their cable modems on the counter at the nearest Bright House cable store, canceling service.  For those brave enough to stay, lessons were learned. As one Web Worker Daily contributor lamented, the most effective way to get Bright House off their collective butts was to embarrass them in the media:

The biggest help [came] when the media started reporting the problem. A local TV station and the Orlando Sentinel both picked up the story. Within only a couple hours, the problem that supposedly didn’t even exist was magically solved, after having dragged on for at least a week.

The lesson I came away with was that fighting as a group is more powerful than going it alone — and even better is having a reporter or two in that group.

The Internet… interrupted: Bright House Networks’ holiday gift to you.  A week of buck passing, liberal use of the “excuse-o-matic” that blames others for their own problems, and a complete unwillingness to do the right thing by customers.  When a service doesn’t work properly, customers don’t want to hear a finger-pointing blame game.  They want the service fixed… fast, and receive credit for the inconvenience they experienced while trying to use your service.  Anyone aware of good customer relations already recognizes these are not unreasonable requests.

Too bad Bright House spent most of its time creatively not fixing its problems until the media got interested.  They should stay on the company’s case until it provides the credit customers deserve.

WFTV-TV in Orlando reports on the inevitable customer blowback that happens when a service provider treats their customers with disregard.  [Apologies for the audio sync problem.] (2 minutes)

Bright House Networks, which has had a close association with Time Warner Cable for years, launched its own version of a “roll over or get tough” campaign through its new Your Right to Watch website.  The launch of the site comes in response to Fox’s own critical ads warning Bright House subscribers access to Fox programming was about to go dark on the cable system unless the two parties reached agreement by December 31st.  Bright House Networks has been negotiating through Time Warner Cable, which is why Fox targeted both in its most recent ad campaign.

The website, stark in appearance, contains just a few sentences on its home page.

“During negotiations, some program providers threaten to take their channels off the cable system. Using this tactic only hurts TV viewers – causing confusion and concern — and is a no-win for everyone,” the site notes.

Bright House Networks includes this video on their new ‘Your Right to Watch’ website.

Time Warner Cable’s Roll Over or Get Tough campaign was tailor-made to bolster the company’s defenses as the deadline nears for the nation’s second largest cable operator and Fox to reach an agreement on carrying Fox-owned stations in the new year.

For sports fans, the relentlessly ticking 24-like clock may run out on some important football games airing on Fox on New Year’s Day, requiring viewers to pull out the rabbit ears and settle for whatever over-the-air signal they can get.  At the moment, the two companies remain far apart in reaching a settlement over exactly how much Time Warner Cable will have to pay to carry Fox affiliates in some of the nation’s top TV markets.

Fox wants a reported $1 per subscriber per month.  Time Warner Cable prefers to pay nothing for Fox broadcast stations — the cable industry typically cuts deals to carry network-owned cable channels for which they will pay.  That’s how many Time Warner Cable customers ended up with channels like Sleuth, CNBC World, and other little-watched NBC-Universal cable channels just to smooth the way for retransmission consent for NBC-owned broadcast affiliates.  Fox shoved the dismally-rated Fox Business News and several regional sports channels onto many Time Warner Cable systems to win retransmission consent deals with higher-rated Fox networks just a few years ago.

Now Fox insists on cash money for carriage.

News Corporation’s Rupert Murdoch, who runs the company that owns Fox, has been making plenty of noise this year about the “business model” of broadcast television being broken in the United States.  Murdoch wants everyone to pay for News Corporation content, be it online from the Wall Street Journal or on your local cable system where the Fox family of cable and broadcast networks occupy at least a half-dozen channels on the lineup.

The level of nastiness has approached that of last year’s vicious battle with Viacom over how much Time Warner Cable would pay for channels like Nickelodeon, Comedy Central, and MTV.  Last year the low point was achieved when Viacom ran full page newspaper ads with a crying Dora the Explorer lamenting the fact she was about to be ripped off the television screens of millions of cable customers.

Time Warner Cable hopes its preemptive strike will earn it some peace and understanding when upset subscribers call the cable company to complain about the loss of Fox on their cable dial.  After all, you did want them to “get tough” with those nasty programmers, right?  Time Warner Cable has pointed the finger specifically at Fox in the newest round of attack ads, and Fox returned fire with a new slap against Time Warner Cable.

Time Warner Cable characterizes a missed deadline in the dispute as the equivalent of Fox taking your TV hostage.

http://www.phillipdampier.com/video/Fox Ad Targets TWC.flv

Fox returns fire with another direct shot at Time Warner Cable in their latest ad.

Meanwhile, local newscasts around the country are sporadically updating viewers about the fight.  Because football is involved, amazing efforts are underway to force the two to reach an agreement, or at least leave the games on.  One Orlando attorney is filing a lawsuit to get an emergency injunction to make sure Orlando’s WOFL-TV stays on Bright House Networks.  That cable company is being represented by Time Warner Cable over the Fox matter.

Bright House Networks in central Florida is also impacted by the Fox-Time Warner Cable stalled negotiations.  WESH-TV and WFTV-TV in Orlando report on the major impact the loss of WOFL-TV – Orlando’s Fox station, would have on area sports fans. (WESH-2 minutes WFTV-3 minutes)

http://www.phillipdampier.com/video/NY1 Time Warner Fox Dispute 12-28-09.flv

Time Warner Cable’s Alex Dudley, familiar to Stop the Cap! readers from the cable operator’s effort to launch a major Internet Overcharging scheme on customers last April, is back in a decidedly pro-Time Warner piece on the cable company-owned NY1.  Dudley can’t resist taking that last shot at Fox, pointing out impacted customers can always watch a lot of Fox programming for free online, thanks to Hulu. (3 minutes)

With these kinds of battles becoming increasingly contentious, Time Warner Cable CEO Glenn Britt hinted the cable operator may look at offering customers more choice in what channels make up a subscriber’s package.  Consumers have howled for years over rate increases that outpace inflation, as cable operators keep expanding the number of channels on offer, and keep raising the rates to pay for them.

“People want more choice, and collectively, we should be responsive to that,” Britt said at a investor conference in New York City. “I haven’t been a big fan of a la carte. The economics don’t work for the programming part of the business and ultimately don’t work for consumers. They do like to buy packages, maybe not as big as the packages we offer now, but they do like packages.”

“The comments are pretty consistently saying, ‘We would like the choice to buy smaller packages,’” Britt said.

The cable industry has traditionally resisted true a-la-carte pricing, which permits customers to choose and pay for only the channels they wish to watch.  Basic cable networks depend on both advertising revenue and the subscription payments they charge every customer who can watch their channels.  With the millions of cable subscribers pooled together, the cost per subscriber for each channel is usually less than 50 cents per month.  Letting subscribers opt-out increases the prices networks have to charge to those still receiving the channel.  Many niche networks would likely not survive such a transition.  The cable industry also argues it would force every subscriber to rent a set top box or similar device for every television in the home, as every channel would have to be scrambled.  Billing costs would also be higher.

Britt’s suggestion that Time Warner Cable could look into adding more “packages” of programming could resemble how C-band satellite dish owners paid for their programming.  Before the days of DISH Networks and DirecTV, millions of Americans placed large satellite dishes (typically 10-12 feet in diameter) in their yards to receive satellite-delivered programming.  When programmers encrypted their signals, satellite dish owners purchased programming in mini-packages comprising a handful of channels.  Some packages were theme-based — news packs with CNN, Headline News, MSNBC, Fox News, and CNBC for $5 a month or company-based, such as a package containing channels formerly owned by Ted Turner or those from Scripps-Howard (HGTV, Food, Style, etc.) for a few dollars a month.  Most subscribers paid for a “basic package” of popular basic networks grouped together and then added on more expensive premium channels or sports channels individually.  It often didn’t make economic sense to purchase each channel individually because of their relative high cost, but consumers could save quite a lot excluding some of the most expensive channels from their lineup (especially sports programming).

Whether Britt would follow through with the threat of “mini packages” is open for debate.  Any savings consumers realize from such offers would reduce Time Warner Cable’s revenue per subscriber, and that’s a sure fire way to upset Wall Street.

Watch more video and learn how Time Warner Cable customers nationwide may be facing the loss of Fox-owned cable channels, even if the local broadcast affiliate stays put.  We also have a more in-depth report on why retransmission consent agreements are increasingly important to broadcasters and pay television operators, all below the page break.

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