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Time Warner Cable Unveils $26/Mo 6-Tuner, 1TB DVR in Los Angeles, New York Maxx Markets

Phillip Dampier October 21, 2014 Competition, Consumer News, Time Warner Cable 3 Comments
TWC enhanced DVR 400x300

Arris DCX 3600 enhanced DVR for Time Warner Cable Maxx customers

Time Warner Cable’s enhanced DVR is here, at an enhanced price starting at $26/month.

Time Warner customers have long waited for an upgraded DVR capable of storing and recording more shows, and the Arris DCX 3600 is the result.

Available soon in Los Angeles and New York (and later in other TWC Maxx-upgraded markets), the enhanced DVR includes six tuners and 1TB of storage, enough to keep around 150 hours of HD programming.

The DVR includes QAM/RF-capability and a DOCSIS 3 modem built into the box. Time Warner Cable has set the monthly price for the box at $15.99 for single room DVR service, $19.99 a month for whole-house DVR service. An additional equipment rental fee also applies: $10.25/mo for the box and remote control, $11.75/mo if you are subject to Time Warner’s “additional outlet service fee.” That means customers will pay up to $31.74 a month for the DVR alone. Customers who subscribe to a bundled service package will likely pay significantly lower rates for the enhanced DVR.

Time Warner arrives very late to the DVR competition wars. Its current boxes can usually record only up to two shows at once and storage space, usually enough for 80 hours, may require customers to clear out older shows to make room for new ones.

Time Warner’s competitors are still able to beat Time Warner’s new DVR:

  • AT&T U-verse comes closest to Time Warner, offering a four tuner DVR that can store up to 422 hours of SD programming, 155 hours in HD;
  • Comcast is testing its new X1 video platform that can record 15 programs at the same time by linking together multiple HD-DVRs;
  • Dish Network’s Hopper HD-DVR can record eight shows at once, and DirecTV’s Genie can manage five recordings at the same time;
  • Verizon FiOS Quantum TV customers can record a maximum of 12 shows at once and its DVR package offers 2TB of storage.

The new equipment should be available in New York and Los Angeles by the end of this month and will gradually be introduced in other TWC Maxx cities planned for upgrades: Charlotte, N.C., Dallas, Tex., Hawaii, Raleigh, N.C., San Antonio, Tex., and San Diego. No word on when the new boxes will be available in Austin, Tex., where upgrades are already underway.

Customers in other Time Warner Cable cities will have to make do with older DVRs until either Time Warner schedules Maxx upgrades or Comcast succeeds in buying Time Warner.

The Capitol Forum’s Insightful Review of the Comcast-Time Warner Merger Deal: A Tough Sell

be mineWall Street is increasingly pessimistic about Comcast and Time Warner Cable pulling off their merger deal as regulators stop the clock to take a closer look at the transaction.

The Capitol Forum, an in-depth news and analysis service dedicated to informing policymakers, investors, and industry stakeholders on how policy affects market competition, specializes in examining marketplace mergers and their potential impact on American consumers and the general economy. The group has shared a copy of their assessment — “Comcast/Time Warner Cable: A Closer Look at FCC, DOJ Decision Processes; Merits and Politics May Drive Merger Challenge, Especially as Wheeler Unlikely to Embrace Title II Regulation for Net Neutrality” — with Stop the Cap! and we’re sharing a summary of the report with our readers.

The two most important government agencies reviewing the merger proposal are the Federal Communications Commission and the Department of Justice. The FCC is responsible for overseeing telecommunications in the United States and is also tasked with reviewing telecom industry mergers to verify if they are in the public interest. The Department of Justice becomes involved in big mergers as well, concerned with compliance with antitrust and other laws.

In many instances, the two agencies work separately and independently to review merger proposals, but not so with Comcast and Time Warner Cable.

Sources tell Capitol Forum there is a high level of coordination and information sharing between DOJ and the FCC, potentially positioning the two agencies in a stronger legal position if they jointly challenge the merger. Readers may recall AT&T’s attempt to buy T-Mobile was thwarted in 2011 when the FCC followed the DOJ’s lead in jointly challenging the merger on competition and antitrust grounds. With a united front against the deal in Washington, AT&T quickly capitulated.

comcast cartoonDespite a blizzard of Comcast talking points claiming the cable industry is fiercely competitive, Capitol Forum’s report indicates the DOJ staff level believes the cable industry suffers dearly from a lack of competition already, and allowing further marketplace concentration would exacerbate an already difficult problem.

Capitol Forum reports the DOJ’s staff is inclined to “take an aggressive posture with regards to [antitrust] enforcement.”

The DOJ would certainly not be walking the beltway plank to its political doom if it ultimately decides to oppose the merger.

Few on Capitol Hill are likely to fiercely advocate for a cable company generally despised by their constituents. The Capitol Forum report notes that Comcast faces powerful opposition and its political support is overstated. Comcast’s lobbying efforts and ties to President Obama and several high level Democrats have also been widely exposed in the media, which makes it more difficult for D.C.’s powerful to be seen carrying Comcast’s water.

In fact, the report indicates a regulatory challenge against Comcast and Time Warner Cable would face considerably less political opposition than what the FCC faces if it reclassifies broadband as a “telecommunications service,” protecting Net Neutrality and exposing the industry to stronger regulatory oversight.

The report suggests FCC Chairman Thomas Wheeler, who seems intent on opposing reclassification of broadband under Title II, may appease his critics by taking a stronger stance on the Comcast/Time Warner deal instead.

Wheeler has already expressed concern about the state of competitiveness of American broadband. He considers providers capable of delivering at least 25Mbps part of broadband’s key market, which in many communities means a monopoly for the local cable operator.

Understanding “The Public Interest” and the Implications of a Combined Comcast/Time Warner Cable on Competition

comcastbuy_400_241The FCC will review the transaction pursuant to Sections 214 and 310(d) of the Communications Act of 1934, in order to ensure that “public interest, convenience, and necessity will be served thereby.”

The merger proposal must also demonstrate it does not violate antitrust laws.

It is here that merger opponents have a wealth of arguments to use against Comcast and Time Warner Cable.

Despite Comcast’s insistence the deal would have no competitive implications, the Capitol Forum reports the merger’s potential anticompetitive effects are “widely recognized and evidence from the investigation could provide DOJ and FCC with a solid foundation to challenge the merger.”

Although the two cable companies don’t directly compete with each other (itself a warning sign of an already noncompetitive marketplace), the report finds “a wide array of anti-competitive effects and several antitrust theories” that would implicate the cable company in a Clayton Act violation.

Comcast is betting heavily on its surface argument that by the very fact customers will not see any change in the number of competitors delivering service to their area, the merger should easily clear any antitrust hurdles. That argument makes it more difficult for the DOJ to fall back on the usual market concentration precedents that would prevent such a colossal merger deal. To argue excessive horizontal integration — the enlarging of Comcast’s territory — the DOJ would first have to prove Comcast’s size in comparison with other cable companies is a reason for the courts to shoot down the deal. Or it could bypass Comcast’s favorite argument and move to the issue of vertical integration — one company’s ability to control not just the pipes that deliver content, but also the content itself.

octopusHere the examples of potential abuse are plentiful:

  • Comcast would enjoy increased power to force cable programmers to favor Comcast in cable programming pricing and policies while allowing it to demand restrictions on competitive online video competitors or restrict access to popular cable programming;
  • Comcast could impose data caps and usage-based pricing to deter online viewing while exempting its own content by delivering it over a Wi-Fi enabled gateway, game console or set top box, claiming all are unrelated to Comcast’s broadband Internet service or network;
  • Force consumers to use Comcast set top boxes that would not support competing providers’ online video;
  • Use interconnection agreements as a clever way to bypass the paid prioritization Net Neutrality debate. Netflix and other content producers would be forced to compensate Comcast for reliable access to its broadband customers;
  • Noting AT&T has declared U-verse can not effectively succeed in the cable television business without combining its customer base with DirecTV to qualify for better volume discounts, there is clear evidence that a super-sized Comcast could command discounts new entrants like Google Fiber could never hope to get, putting them at a distinct price disadvantage.

The FCC’s scrutiny of Comcast’s merger deal has already uncovered evidence previously unavailable because of non-disclosure agreements which show Comcast’s heavy hand already at work.

The report notes Michael Mooney, a senior vice president and group general counsel at Level 3, told the Capitol Forum the dispute earlier this year between Netflix and Comcast could have been resolved in about five minutes had Comcast added a port to relieve congestion at an interconnection point. The cost? Just $5,000. Had Comcast been willing to spend the money, millions of Comcast customers would have never experienced problems using Netflix.

Whether Comcast is ultimately deemed too large to permit another consolidating merger or whether it is given conditional approval to absorb Time Warner Cable remains a close call, according to the Capitol Forum, despite the fact consumers have urged regulators for something slightly more concrete – a single sentence, total denial of its application.

http://www.phillipdampier.com/video/Capitol Forum The Consumer Welfare Test.mp4

The Capitol Forum broadly explores how the “consumer welfare standard” has become a part of the antitrust review process over the last 30 years. Sometimes, a strict antitrust test is not sufficient to protect “the public interest” of consumers, and allows the dominant player(s) to harm competition. In the digital economy, corporate mergers that empower companies to restrict innovation can prove far more damaging than classic monopoly abuse. (15:52)

New York Public Service Commission Refuses to Release Notes from Private Meetings With Comcast

ny pscSeven staff members from the New York’s Public Service Commission privately met with representatives of Comcast and Time Warner Cable on April 10, April 24, and May 8, 2014 and the regulator is refusing to disclose exactly what was discussed.

Despite repeated requests from Common Cause NY, the PSC has been less than completely forthcoming releasing:

  • Documents provided at the meetings by representatives of Comcast and Time Warner;
  • Documents provided to Comcast or Time Warner representatives by the Department of Public Service;
  • Minutes of the meetings;
  • Notes taken by public officials or their staff in attendance.

NY PSC Secretary Kathleen Burgess did indicate “no documents were provided to or received from DPS staff, Comcast or Time Warner at the aforementioned meetings,” adding “no other records responsive to your request could be found in the possession of the department.”

That might have been the end of it had we not discovered that staff members created 31 pages of handwritten and typed impressions of the presentations offered by the two cable companies — vital clues about precisely what was discussed behind closed doors.

Despite a confirmation from Secretary Burgess that these notes do, in fact, exist, she has refused all requests to release them to the public.

“Because they are deliberative rather than ‘statistical or factual tabulations or data,’ they are not subject to disclosure under the intra agency exemption,” Burgess declared. “Accordingly, I deny your appeal.”

The public was not allowed to attend the meetings, one of which was attended by Public Service Commission chairwoman Audrey Zibelman and Commissioner Gregg Sayre. On April 10, they met with executives from the two cable companies, according to public schedules. They were joined by Allison Lee, a lobbyist for the firm representing Time Warner Cable and Tom Congdon, Gov. Andrew Cuomo’s Assistant Secretary for Energy. What was discussed has been kept secret to this day.

Time Warner Cable’s presence is well-felt in Albany. The cable operator is one of the state’s top lobbyists, spending nearly $500,000 on New York politicians in 2013 alone. Both Time Warner and Comcast have donated a combined $200,000 to Gov. Cuomo’s campaign accounts.

New York has put Comcast’s merger application on hold until November. Last week more than 99 percent of shares held by stockholders of both cable companies were voted in favor of the deal.

J.D. Power & Associates Tie Vote! Hemorrhagic Fever vs. Comcast vs. Time Warner Cable

jd powerLove can be a fickle thing.

Take Comcast’s affair with J.D. Power & Associates, for example. In Comcast’s filings with regulators, it is very proud that J.D. Power cited Comcast for the most improvement of any cable operator scored by the survey firm. Comcast touted the fact it had managed to increase its TV satisfaction score by a whopping 92 points and Internet satisfaction was up a respectable 77 points. (Comcast didn’t mention the fact J.D. Power rates companies on a 1,000 point scale or that it took the cable company four years to eke out those improvements.)

Last month, J.D. Power issued its latest ranking of telecommunications companies and… well, the love is gone.

If customer alienation was an Olympic event, J.D. Power awarded tie gold medals to both Comcast and Time Warner Cable for their Kafkaesque race to the bottom.

The survey of customer satisfaction largely found only dissatisfaction everywhere in the country J.D. Power looked. While Comcast likes to cite its “customer-oopsies-gone-viral” blunders as “isolated incidents,” J.D. Power finds them epidemic nationwide.

skunkThe highest rating across television and broadband categories achieved by either cable company was ‘Meh.’ J.D. Power diplomatically scored both cable companies on a scale that started with “among the best” as simply “the rest.” Customers in the west were the most charitable, those in the south and eastern U.S. indicated they were worked to their last nerve.

“The ability to provide a high-quality experience with all wireline services is paramount as performance and reliability is the most critical driver of overall satisfaction,” said Kirk Parsons, senior director of telecommunications, in a statement.

Having competition available from a high-scoring provider also demonstrates what is possible when a company actually tries to care about customer service. In the same regions Comcast fared about as popular as hemorrhagic fever, WOW! Cable and Verizon FiOS easily took top honors. Even AT&T U-verse scored far higher than either cable company, primarily because AT&T offers very aggressive promotional packages that include a lot for a comparatively low price.

Other cable and smaller phone companies didn’t do particularly well either. Frontier and CenturyLink both earned dismal scores and Charter Cable only managed modest improvement. The two satellite television companies did fine in customer satisfaction for television service, but it was the two biggest phone companies that managed the best scores for Internet service. Among cable operators, only independents like WOW! (and to a lesser extent Cox) did well in the survey.

If J.D. Power is the arbiter of good service Comcast seems to claim it to be, the ratings company just sent a very clear message that when it comes to merging Comcast and Time Warner Cable, anything multiplied by zero is still zero.

J.D. Power ranking (Image courtesy: Reviewed.com)

J.D. Power ranking (Image courtesy: Reviewed.com)

Earthlink Customers Benefit from Time Warner Cable Maxx Broadband Upgrades

earthlink_logoEarthlink customers in New York, Los Angeles and Austin are receiving letters from Time Warner Cable advising them they qualify for the same speeds Time Warner Cable broadband customers are receiving as part of the TWC Maxx upgrade program.

Standard Earthlink customers in these cities will get speed upgrades from 15/1Mbps to 50/5Mbps at no extra charge. Turbo speed customers will see speeds rise from 20/2Mbps to 100/10Mbps, also at no additional cost.

twcmaxStop the Cap! reader Iris was immediately suspicious about the tone of Time Warner’s letter, which has the potential of confusing customers that own their own cable modems. The letter suggests customer-owned equipment might not be compatible with the speed upgrades. Customers are given a phone number to verify their eligibility, and some who have contacted Time Warner Cable report back they have been given a brief sales pitch to ditch their own modem in favor of one from Time Warner Cable, which costs $5.99 a month forever.

Time Warner could have simply enclosed its list of approved modems, which would answer customer concerns without having to make a phone call. But that wouldn’t give the company a chance to score extra revenue convincing customers to toss their old equipment in the trash while paying an unnecessary monthly modem fee for the rest of their lives.

For the record, your old modem probably will continue to work even if it isn’t capable of delivering the fastest speeds. If 50/5Mbps is fast enough for current Earthlink Turbo customers, they might want to consider downgrading service until they can budget to buy a new modem capable of taking full advantage of the faster 100/10Mbps speeds now on offer.

For your convenience, here is the latest Time Warner Cable Approved Modem List for TWC Maxx upgrade areas:

approved modems

 

Marsha Blackburn Angry that FCC Chairman Wants to Run Tenn. Broadband… When AT&T Should

Rep. Marsha Blackburn (R-Tennessee, but mostly AT&T and Comcast)

Rep. Marsha Blackburn (R-Tennessee, but mostly AT&T and Comcast)

Rep. Marsha Blackburn (R-Tenn.) is angry that FCC chairman Tom Wheeler is sticking his nose into AT&T, Comcast, and Charter Communications’ private playground — the state of Tennessee.

In an editorial published by The Tennessean, Blackburn throws a fit that an “unelected” bureaucrat not only believes what’s best for her state, but is now openly talking about preempting state laws that ban public broadband networks:

Legislatures are the entities who should be making these decisions. Legislatures govern what municipalities can and cannot do. The principles of federalism and state delegation of power keep government’s power in check. When a state determines that municipalities should be limited in experimenting in the private broadband market, it’s usually because the state had a good reason — to help protect public investments in education and infrastructure or to protect taxpayers from having to bailout an unproven and unsustainable project.

Chairman Wheeler has repeatedly stated that he intends to preempt the states’ sovereign role when it comes to this issue. His statements assume that Washington knows best. However, Washington often forgets that the right answers don’t always come from the top down.

It’s unfortunate Rep. Blackburn’s convictions don’t extend to corporate money and influence in the public dialogue about broadband. The “good reason” states have limited public broadband come in the form of a check, either presented directly to politicians like Blackburn, who has received so many contributions from AT&T she could cross daily exercise off her “things to do” list just running to the bank, or through positive press from front groups, notably the corporate-funded American Legislative Exchange Council (ALEC).

According to campaign finance data compiled by the Center for Responsive Politics, three of Blackburn’s largest career donors are employees and PACs affiliated with AT&T, Comcast and Verizon. Blackburn has also taken $56,000 from the National Cable & Telecommunications Association, the lobby for the big telecoms.

Combined, those organizations donated more than $200,000 to Blackburn. In comparison, her largest single donor is a PAC associated with Memphis-based FedEx Corp., which donated $68,500.

Phillip "States' rights don't extend to local rights in Blackburn's ideological world" Dampier

Phillip “States’ rights don’t extend to local rights in Blackburn’s ideological world” Dampier

Blackburn’s commentary tests the patience of the reality-based community, particularly when she argues that keeping public broadband out protects investments in education. As her rural constituents already know, 21st century broadband is often unavailable in rural Tennessee, and that includes many schools. Stop the Cap! regularly receives letters from rural Americans who complain they have to drive their kids to a Wi-Fi enabled parking lot at a fast food restaurant, town library, or even hunt for an unintentionally open Wi-Fi connection in a private home, just to complete homework assignments that require a broadband connection.

Blackburn’s favorite telecommunication’s company — AT&T — has petitioned the state legislature to allow it to permanently disconnect DSL and landline service in rural areas of the state, forcing customers to a perilous wireless data experience that doesn’t work as well as AT&T promises. While Blackburn complains about the threat of municipal broadband, she says and does nothing about the very real possibility AT&T will be allowed to make things even worse for rural constituents in her own state.

Who does Blackburn believe will ride to the rescue of rural America? Certainly not AT&T, which doesn’t want the expense of maintaining wired broadband service in less profitable rural areas. Comcast won’t even run cable lines into small communities. In fact, evidence has shown for at least a century, whether it is electricity, telephone, or broadband service, when large corporate entities don’t see profits, they won’t provide the service and communities usually have to do the job themselves. But this time those communities are handcuffed in states that have enacted municipal broadband bans literally written by incumbent phone and cable companies and shepherded into the state legislature through front groups like ALEC.

Chairman Wheeler is in an excellent position to understand the big picture, far better than Blackburn’s limited knowledge largely absorbed from AT&T’s talking points. After all, Wheeler comes from the cable and wireless industry and knows very well how the game is played. Wheeler has never said that Washington knows best, but he has made it clear state and federal legislators who support anti-competitive measures like municipal broadband bans don’t have a monopoly on good ideas either — they just have monopolies.

That isn’t good enough for Congresswoman Blackburn, who sought to strip funding from the FCC to punish the agency for crossing AT&T, Comcast and other telecom companies:

Marsha is an avowed member of the AT&T Fan Club.

Marsha is an avowed member of the AT&T Fan Club.

In July, I passed an amendment in Congress that would prohibit taxpayer funds from being used by the FCC to pre-empt state municipal broadband laws. My amendment doesn’t prevent Chattanooga or any other city in Tennessee from being able to engage in municipal broadband. It just keeps those decisions at the state level. Tennessee’s state law that allowed Chattanooga and other cities to engage in municipal broadband will continue to exist without any interference from the FCC. Tennessee should be able to adjust its law as it sees fit, instead of Washington dictating to us.

Notice that Blackburn’s ideological fortitude has loopholes that protect a very important success story — EPB Fiber in Chattanooga, one of the first to offer gigabit broadband service. If municipal broadband is such a threat to common sense, why the free pass for EPB? In fact, it is networks like EPB that expose the nonsense on offer from Blackburn and her industry friends that claim public broadband networks are failures and money pits.

In fact, Blackburn’s idea of states’ rights never seems to extend to local communities across Tennessee that would have seen local ordinances gutted by Blackburn’s telecommunications policies and proposed bills. In 2005, Blackburn introduced the ironically named Video Choice Act of 2005 which, among other things:

  • Would have granted a nationwide video franchise system that would end all local oversight over rights-of-way for the benefit of incumbent telephone companies, but not for cable or other new competitors like Google Fiber;
  • Strips away all local oversight of cable and telephone company operations that allowed local jurisdictions to ensure providers follow local laws and rules;
  • Prohibited any mechanism on the local level to collect franchise payments;
  • Eliminated any rules forbidding “redlining” — when a provider only chooses select parts of a community to serve.

More recently, Blackburn has been on board favoring legislation restricting local communities from having a full say on the placement of cell towers. Current Tennessee law already imposes restrictions on local communities trying to refuse requests from AT&T, Verizon and others to place new cell towers wherever they like. She is also in favor of highest-bidder wins spectrum auctions that could allow AT&T and Verizon to use their enormous financial resources to snap up new spectrum and find ways to hoard it to keep it away from competitors.

Not everyone in Tennessee appreciated Blackburn’s remarks.

Nashville resident Paul Felton got equal time in the newspaper to refute Blackburn’s claims:

Rep. Marsha Blackburn is on her high horse (Tennessee Voices, Oct. 3) about the idea of the Federal Communications Commission opposing laws against municipal broadband networks, wrapping herself in the mantle of states’ rights. We know that behind all “states’ rights” indignation is “corporate rights” protection.

The last I heard, there was only one Internet, and anyone can log into Amazon or healthcare.gov just as easily from any state. Or any budget.

No, this is about the one Internet being controlled by one corporate giant (or two) in each area, who want to control price and broadband speed, and now want to link the two. They don’t want competition from any pesky municipal providers hellbent on providing the same speed for all users, at a lower price. Check the lobbying efforts against egalitarian ideas to find out which side of an issue Marsha Blackburn always comes down on.

But comments like these don’t deter Rep. Blackburn.

“Congress cannot sit idly by and let a federal agency trample on our states’ rights,” she wrote, but we believe she meant to say ‘AT&T’s rights.’

“Besides, the FCC should be tackling other priorities where political consensus exists, like deploying spectrum into the marketplace, making the Universal Service Fund more effective, protecting consumers, improving emergency communications and other important policies,” Blackburn wrote.

Remarkably, that priority list just so happens to mirror AT&T’s own legislative agenda. Perhaps that is just a coincidence.

Midwestern Cities Worry About Comcast’s Replacement: Already Debt-Laden GreatLand Connections

The merger of Comcast and Time Warner Cable includes castoffs that will be served by a completely unknown spinoff - GreatLand Communications, that nobody can speak with and does not have a website.

The merger of Comcast and Time Warner Cable includes castoffs that will be served by a completely unknown spinoff – GreatLand Connections, that nobody can speak with and does not have a website.

At least 2.5 million Comcast customers in cities like Detroit and Minneapolis could soon find their service switched to a new provider that doesn’t have a website, doesn’t answer questions, and won’t give detailed information to municipal officials about its plans, pricing, or service obligations.

GreatLand Connections is the dumping ground for communities Comcast no longer wants to serve, including cities in Alabama, Indiana, Kentucky, Michigan, Minnesota, Tennessee and Wisconsin.

Formerly known as “SpinCo” for the benefit of Wall Street investment banks advising Comcast, the new cable company has been created primarily to help Comcast convince regulators to approve its merger with Time Warner Cable. Comcast believes supersizing itself with Time Warner Cable will win a pass with the FCC by self-limiting its potential television market share. The deal is also structured to dump a large amount of debt on the brand new cable company, allowing Comcast to avoid a significant tax bill.

GreatLand will, for all intents and purposes, be Charter Cable under a different name. Charter will act as the “management company,” which means it will be in charge of most consumer-facing operations.

Beyond that, almost nothing is known about the new cable company, except that it will open its doors laden with $7.8 billion in debt, according to a securities filing. That is equal to five times EBITDA, or earnings before interest, taxes, depreciation and amortization. In comparison, Comcast is 1.99 times EBITDA and Time Warner Cable is 3.07 times EBITDA, making the new cable company highly leveraged above industry averages. Charter Cable, which declared bankruptcy in 2009, is loaded down it debt itself, as it continues to acquire other cable operators.

Finances for the new company appear to be “less-than-middling,” according to MoffettNathanson analyst Craig Moffett, in a note to investors.

Because cable operators face little serious competition, the chances of any significant cable company liquidating in bankruptcy is close to zero, but a heavily indebted company may be very conservative about spending money on employees and operations. It may also leverage its market position and raise prices to demonstrate it can repay those obligations.

exitWith many customers having only one choice for High Speed Internet access above 15-25Mbps — the cable company — the arrival of GreatLand concerns many municipalities facing deadlines to approve a transfer of franchise agreements from Comcast to the new entity.

Jodie Miller, executive director of the Northern Dakota County Cable Communications Commission in suburban Minneapolis said it was impossible to find anyone to talk to at GreatLand. The commission needs to sign off on franchise transfers by mid-December, but nobody can reach GreatLand and the company has no track record of service anywhere in the country.

“We’re not even saying it’s unqualified,” she told Businessweek. “We’re saying we don’t really have information.”

Coon Rapids, Minn. has put franchise renewal negotiations on hold. Michael Bradley, a municipal cable TV attorney and the city’s longtime cable counsel said the deadline has been extended from Oct. 15 to Dec. 15.

“It’s a challenge,” he said. “No one knows who we can deal with locally. Nothing is certain yet and discussions are on hold.”

“We don’t have the answers we need,” added Ron Styka, an elected trustee with responsibility for cable-service oversight in Meridian Township, Michigan, a town served by Comcast about 80 miles west of Detroit.

“Answers have been inadequate at best and mostly not forthcoming,” echoed David Osberg, city administrator of Eagan, Minn. in a filing to the Federal Communications Commission.”It’s not clear whether GreatLand will be financially qualified.”

Eagan has had problems with Comcast in the past, and does not want new ones with GreatLand, especially with broadband service, which is vital to an effort to attract technology jobs to the community.

Time Warner Cable’s LA Dodgers Dispute Giant Win for KDOC-TV; Paid to Carry Must-Watch Games

Struck Out

Struck Out

For most of the current baseball season, Los Angeles Dodgers fans who don’t subscribe to Time Warner Cable have been shut out, unable to watch the games shown exclusively on the extremely expensive SportsNet LA cable network, jointly owned by the Dodgers and Time Warner Cable.

Most of Time Warner’s southern California competitors balked at the asking price: about $4 a month per subscriber. Had they agreed to carry the network, subscribers would ultimately pay for it during the next round of rate hikes, whether they watched sports or not.

Time Warner Cable has a 25-year, $8.35 billion dollar contract to manage the network, and observers believe they have struck out.

“They rolled the dice and lost big time,” said Jimmy Schaeffler, head of consulting firm the Carmel Group.

With networks like ESPN commanding whatever they set as an asking price, sports team owners have rushed to get a piece of the lucrative sports network pie. Even individual teams are now demanding their own exclusive networks, hoping to charge top dollar to companies agreeing to carry them.

Angry cable customers watching their bills skyrocket can primarily blame sports programming for much of the endless increases. Around 20 regional and national sports channels now comprise 20% of the wholesale cost of cable television — a high percentage considering the average cable system now carries over 200 channels. While some basic cable networks are lucky to get 10 cents a month per subscriber, regional Fox Sports North demands $4.67 a month from each subscriber, whether they watch the network or not. Smaller independent cable systems usually pay even more.

sports fees

In southern California, the average cable subscriber pays $20 a month for seven sports channels. There was little interest raising that to more than $24 a month to carry what Dodgers team president Stan Kasten called, “a Dodger-only channel with Dodger-only content 24/7.”

“We’ve been approaching a tipping point in sports programming costs for years and the Los Angeles market has sent a strong message that we’ve reached it,” Andy Albert, senior vice president of content acquisition at Cox Communications, one of the distributors that declined to carry SportsNet LA, told the Wall Street Journal.

kdocThe embargo has cost both the Dodgers and Time Warner Cable plenty of advertising and subscription revenue. Ratings are dramatically down from an average of 228,000 viewers when the baseball games were shown on widely carried Prime Ticket, to just 55,000 today on SportsNet LA. Advertising rates have been slashed to compensate for the lack of an audience.

The cost of the dispute between Time Warner Cable and its competitors also included bad public relations, which attracted the attention of regulators at the FCC and area elected officials, who have loudly complained that viewers are increasingly caught in the middle of these disputes.

The pressure worked, and Time Warner Cable announced in mid-September it would broadcast the six final Dodgers games of the season locally for free on KDOC-TV, an independent channel based in Orange County mostly known for airing endless reality shows and reruns of off-network series. On a good day, KDOC attracts at most 18,000 viewers. But the station is doing better today — grabbing an average of 259,000 viewers last week during one Dodgers game — essentially the same audience the Dodgers used to have before SportsNet LA came along. Even better for the station, Time Warner Cable is paying KDOC to carry the games.

KDOC management is now desperately trying to figure out how to keep its new audience after baseball season ends, running promotions for its various shows as often as possible. The station is easy enough to find over-the-air and on every significant cable, satellite, and telco-TV operator. But with more than three dozen high power, low power, and digital sub-channels to choose from across Los Angeles, the Inland Empire, and Orange County, airing stale series and courtroom drama shows may not be enough.

http://www.phillipdampier.com/video/KDOC Los Angeles New Years Show Eve Show of FAIL 12-31-12

Many Los Angeles residents became familiar with KDOC after the station attracted national media coverage for its infamous 2013 New Year’s special hosted by actor and comedian Jamie Kennedy. As viewers watched the slow motion train wreck unfold with D-listers like Shannon Elizabeth, they were treated to endless technical issues, dead air, sudden commercials in the middle of interviews, open mics, unbleeped profanity, a stand-up routine not suitable for children or broadcast television, and special musical guests like rappers Bone Thugs-n-Harmony who dropped F-bombs on live television. Nobody at KDOC thought of pulling the plug, despite violating just about every FCC content regulation. It finally ended with an inebriated Macy Gray hoping to hurry along the festivities and, as the credits rolled, a sudden on-stage fight. Kennedy thanked fast-food chain Carl’s, Jr. for sponsoring the event, which undoubtedly caused extreme discomfort until they could disavow their involvement. An exasperated KDOC engineer assembled this montage of the disaster, which is definitely not suitable to watch at work. (6:23)

Irish TV Venture in Talks With Comcast/Time Warner Cable for Nationwide Carriage Deal

Mhaoilchiaráin and O'Reilly launch Irish TV (Image: Picture: Frank Dolan )

Mhaoilchiaráin and O’Reilly launch Irish TV (Image: Picture: Frank Dolan )

Irish TV, focused on the Irish diaspora, is in talks with Comcast and Time Warner Cable to add its online channel to the national cable television lineups of both companies.

The network, not affiliated with Raidió Teilifís Éireann (RTÉ) — Ireland’s public broadcaster, is a Mayo-based commercial venture that launched in May 2014, and can be viewed only in part on some PBS stations and via Sky and Freesat in Europe.

John Griffin, chairman of Irish TV, has committed to spend up to $18.9 million on the network. He has the money, having earned millions while growing London minicab company Addison Lee. He sold his interest in the venture to the Carlyle Group for $486.3 million dollars last year.

The vision behind the Irish channel, which features homegrown cooking, music, and sports entertainment, originated with its founders Pierce O’Reilly and Máiréad Ní Mhaoilchiaráin. They agreed to let Griffin run the network after concluding negotiations carried out in a London pub.

Each Irish county (North and South) will have its own half an hour slot on the channel called County Matters.

In August, the Broadcasting Authority of Ireland, the country’s telecom regulator, began talks with Irish TV’s parent Teilifís Mhaigh Eo Teoranta for a broadcast license. Currently, the venture only operates in Europe because of a license issued by Ofcom, the British telecommunications regulator.

An Irish television license will allow the venture to operate directly within Ireland and facilitate programming agreements with RTÉ that could bring more mainstream Irish television programming to American television.

Winning a carriage agreement with Comcast and Time Warner Cable would bring the network more potential viewers than there are citizens of Ireland itself.

 

Updated: New York PSC Announces Delay in Comcast/Time Warner Cable Merger Consideration

The staff of the New York Public Service Commission has requested extra time for consideration of Comcast’s application to assume control of Time Warner Cable’s operations in New York State.

“Pursuant to a request from Department of Public Service staff in the above-referenced matter, Comcast Corporation and Time Warner Cable Inc. agree to action by the Public Service Commission on the Joint Petition at the November 13, 2014 Commission Session, with a final order being issued no later than November 19, 2014,” says a filing published late this afternoon by the Commission.

The merger was to be on the agenda for approval or rejection at a meeting in early October. New York public interest groups are continuing to mount opposition campaigns against the merger. Many feel the proposal has not been given enough attention and the public remains largely unaware of their ability to take part in discussions about the proposal.

Update: 9/29/14:

Public Service spokesperson James Denn sent this statement to City Newspaper on Monday:

“The Comcast proceeding, affecting 2.2 million cable customers in New York and representing an approximate New York transaction value of $3 billion, has led to an intense stakeholder focus producing nearly 3,000 public comments, making it one of the most active proceedings in commission history. Given the depth and breadth of the public record and the importance of the issues presented, the commission has accepted the extension of the period for review so that it may consider the matter more fully at its November 13 session.”

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