Home » Comcast » Recent Articles:

Behind the Bulletproof Glass: More Misadventures at Comcast’s Customer Service Center

Marco S. was so frustrated by the line running outside of his local Comcast store, he snapped this photo. At least the weather was nice.

Marco S. was so frustrated by the line running outside his local Comcast store, he snapped this photo. At least the weather was nice.

Comcast customer Timothy Lee made a grave error in judgment. He decided to return his Comcast-owned cable modem to a Comcast customer service center… on a Saturday!

Long-time Comcast customers know only too well a Saturday visit to Comcast represents a major outing, with long lines that often extend outside and up to an hour or more waiting time.

Lee compared his visit to waiting in line at the post office, but that’s not really true except during the holidays — the post office is better organized and usually lacks the heavy-duty bulletproof glass and surly attitudes that separate Comcast’s “customer service agents” from their unhappy customers.

Predictably, Lee waited more than 30 minutes before his number was up.

Lee’s predicament is all too familiar. His only choice for high-speed Internet access is Comcast, and the cable company knows it. So just like your local Department of Motor Vehicles, there is no harm done if Comcast opens a customer service center with 10 available windows staffed by only two employees, one happily munching on pretzels ignoring the concert-length line during his 20-minute break.

Time Warner Cable’s service centers are not much better, although they usually have fewer windows to keep customers from getting their hopes up. Comcast’s bulletproof glass is also not in evidence at TWC locations, although the burly bank-like security guard is very apparent at some centers in sketchy neighborhoods. Time Warner Cable also offers seating, but visit wealthier suburban locations when possible, where comfortable couches replace the nasty hard benches or plastic furniture often found downtown.

Comcast was instantly ready to offer up the usual excuses:

Your recent visit to our Washington D.C. service center is certainly not the experience we want anyone to have. We’ve been working on  a multi-year project to revamp the hundreds of service centers we have around the country to better serve customers.  As part of that project, we will be remodeling the Michigan Avenue location and will open another service center in the District in early 2015.  We’re also introducing more options for customers to manage their accounts, including a new program we’re starting to roll out with The UPS Store to make them an authorized Comcast equipment return location.

It’s always better at Comcast sometime in the yet-to-be-determined future. Until then, suffer.

Share

FCC May Make Comcast/Time Warner Merger Contingent on Carriage of More TV Channels

cable tvJust when you thought the cable television lineup could not possibly get any larger,  insiders at Comcast are anticipating one of the possible conditions that could be imposed by the Federal Communications Commission in return for approval of its merger with Time Warner Cable is an agreement to carry more independently owned cable television channels.

One of the most vocal groups of consumers opposed to the merger deal have been viewers of independent Omaha, Neb.-based RFD-TV, which has landed carriage deals with Time Warner Cable but has been largely ignored by Comcast. For most of the summer, RFD-TV encouraged viewers to pelt the FCC with complaints about the merger deal, insisting that more networks not owned or operated by the top five media conglomerates get equal treatment on the Comcast cable dial. Thousands of viewers responded.

Comcast vice president David Cohen told Congress Comcast already carries more than 170 small or independent networks, although Comcast counts international networks distributed to customers at premium rates.

“It sounds wonderful. But when you peel back the onion . . . it’s really nothing at all,” Pat Gottsch, founder of RFD-TV told the Philadelphia Inquirer. “Very few [independent] channels have full distribution, other than BBC World News and Al Jazeera.”

Independent networks have little leverage with major cable operators because they cannot tie carriage agreements to more popular mainstream cable networks. That is why little-known networks like Crime & Investigation Channel or the spinoffs of fX – fXX and fXM – have glided onto cable lineups while networks like RFD, The Tennis Channel, and BlueHighways TV have a much tougher time.

Time Warner Cable now widely carries RFD-TV, but often only on an added-cost mini-pay tier. In many Time Warner markets, RFD and Smithsonian TV replaced HDNet, also an added-cost network.

rfdtv_logoThe independent networks fear they will never become viable if they cannot reach the nearly one-third of the country’s cable television subscribers a combined Comcast and Time Warner Cable would serve. Others question whether they will be given fair consideration if their networks compete with an existing Comcast or Time Warner Cable-owned channel.

The Tennis Channel and Bloomberg have both tussled repeatedly with Comcast over carriage agreements and channel placement. The Tennis Channel took Comcast all the way to a federal appeals court, but lost their case. Cable companies have won recognition of their First Amendment rights to choose the channels on their systems.

In years past, cable operators cited limited channel capacity as the most frequent reason a network could not be added to the lineup. Comcast continues to claim they have limited channel space for television channels, but that has not stopped the cable company from launching dozens of little-watched networks they receive compensation to carry (home shopping, TBN and certain other religious networks) or are contractually obligated to carry (add-on sports and entertainment networks owned by Disney, Viacom, Time Warner (Entertainment), Fox, and even Comcast itself, through its Universal division).

garbageComcast’s claim it already carries nearly 180 independent networks drew scrutiny when the company released the list of networks. At least half were added-cost international or pornography networks — all sold at a higher cost. More than a dozen others were independent sports channels packed into a higher-cost sports tier. Most of the rest were regional networks given very limited exposure. BlueHighways TV, which features bluegrass music, is seen in only 210,000 Comcast homes, mostly in Tennessee. That is less than 1% of Comcast’s total subscriber base.

The only prominent and truly independent networks given wide carriage on Comcast include Home Shopping Network and QVC, which pay a commission to Comcast for every sale made to a Comcast customer, BBC World News, and the Catholic EWTN network.

Mitigating the problem of independent network carriage may push the FCC to the path of least resistance – making carriage of some of these networks a requirement in return for merger approval.

It wouldn’t be the first time. Comcast agreed to launch 10 independent networks as a condition for FCC approval of its buyout of NBCUniversal. That deal is what brought BBC World News to the Comcast lineup, along with a range of little-known networks on high channel numbers: ASPiRE, BabyFirst Americas, Revolt, and El Rey. BabyFirst is targeted to babies and toddlers from 0-3 years old, but is also enjoyed by recreational drug users who find the network’s use of bright colors in their short-form videos entertaining. ASPiRE’s programming has been described by its critics as “crap.”

Share

N.Y. Regulators Predict Some Time Warner Customers Will Pay More Than Double to Comcast

Staff at the New York regulator overseeing the state’s telecommunications companies have determined that some Time Warner Cable customers will see their largest rate increase in New York history — more than double their current rate — if Comcast is successful in its bid to acquire Time Warner Cable.

At issue is Time Warner Cable’s heavily promoted ‘buy only what you need’ Every Day Low Price Internet service, which offers 2Mbps service for $14.99 a month.

Comcast has no plans to continue the discount offering, which means Internet customers will pay more than twice as much for Comcast’s cheapest Internet package available to all customers — Economy Plus (3Mbps), priced at $39.99 a month and only available at that price if you also subscribe to Comcast telephone or television service.

Time Warner Cable’s cheapest television package is priced at $8-20 a month. Comcast’s least-expensive TV package costs $17-20 a month.

“Time Warner’s lowest-priced offerings… represent choices for New York consumers,” Public Service Commission staff wrote in an Aug. 8 filing in the case, noted Albany’s Times-Union. “Any loss of these services would likely result in consumers paying more.”

Comcast denies it will raise prices for New Yorkers or any other Time Warner Cable customer, but noted it needs to study the “significant competition that it faces” before making any decisions on prices. When Comcast discovers Verizon FiOS isn’t providing much of a competitive threat in areas unreached after Verizon stalled its expansion efforts and AT&T U-verse and other telco broadband offerings cannot keep up with cable broadband speeds, they might assume they don’t face that much competition after all.

Share

Time Warner Cable Can Raise Pricing on 2-Year Promotions; Customer Sees $15 Surprise Rate Hike

fine printTime Warner Cable customers believing they can “lock in” prices for up to two years with one of the company’s service promotions might be surprised to learn the fine print allows the cable company to adjust prices after just one year of service, as this reddit user just discovered:

My bill went up $15. They tell me it’s ok because I’m still on the same promotion, it just went up in price. That I’m still saving over full retail price so it’s ok. The phrase “it’s only $15″ was used by the service rep.

This is complete bulls***.

edit: I really wish I thought ahead to record the call. Now that I’m off the phone he offered me a one time $15 credit to make next month better. Like that changes anything.

How can the term two-year promotion be used if it’s only good for 1 year you ask? Well Time Warner’s answer is that it’s still the same promotion, it just goes up after a year.

edit again: The one time $15 just posted to my account. They don’t even call it a customer service adjustment or anything, they call it a “Save a Sub adjustment.” Not even trying to hide it.

09/06/2014 Save a Sub Adj -15.00

This and many other Time Warner Cable customers probably missed the fine print, which reveals pricing for the promotion can, and often does, adjust after the first 6-12 months. Comcast, the potential new owner of Time Warner Cable, also runs promotions the same way. Here are examples from both companies:

Time Warner Cablecomcast twc: Three-product offers valid for new residential and existing customers. After 12 months, regular rates apply. Offers expire 10/19/14. Standard TV for $39.99 available for 12 months; in months 13-24, price will go up to $44.99; after month 24, price will go to retail.

Comcast: After first 6 months, monthly service charge increases to $109.99 for months 7-12. After 12 months, or if any service is cancelled or downgraded, regular charges apply. After 6 months, the monthly charge for HBO is $15 for 12 months and thereafter, regular rates apply.

Some cable operators bill promotions by charging the customer the regular price for service and then apply a fixed promotional credit for the length of the promotional offer. If rates increase during the promotion, the customer will see the rate increase on their bill and will end up paying more because the service credit they receive does not change to offset the increase.

Why are they allowed to do this? Because cable companies like Time Warner Cable have gradually moved away from term-length service contracts, especially where they do not face a new competitor like U-verse or FiOS entering their service area for the first time. With both competitors well-established, cable operators have moved away from two-year “contracts” to two-year “promotions,” but customers often do not know the difference.

This customer can switch providers at any time without a penalty. Instead he called and complained and received a one-time service credit. Chances are if he calls and threatens to cancel service, the retention agent will put him back on the original promotion or one offering a similar promotional price. The key word is “cancel,” which works like nothing else to motivate representatives to keep your business.

Share

Comcast Denies It Threatens Customers With Suspension for Using Anonymous Tor Web Browser

torComcast has strongly denied reports it threatened customers with service termination for using the Tor anonymous web browser, designed to obscure a web user’s identity or location.

Over the weekend, Deep.Dot.Web reported that Comcast agents were contacting customers using the Tor web browser and warned them their Internet access was in peril if they continued using the anonymous browsing software, claiming it was against Comcast’s acceptable use policy.

Allegedly, Comcast representatives “Jeremy” and “Kelly” claimed Tor was “an illegal service” and demanded the customers reveal the web sites they were attempting to reach using the browser.

The representative identified as “Kelly” claimed:

“Users who try to use anonymity, or cover themselves up on the Internet, are usually doing things that aren’t so-to-speak legal. We have the right to terminate, fine, or suspend your account at anytime due to you violating the rules. Do you have any other questions? Thank you for contacting Comcast, have a great day.”

The Tor browser was designed to protect the identity of its privacy-minded users from nosy government agencies and law enforcement elements, but has also been used to hide illegal activities ranging from child pornography and drug dealing to murder-for-hire and espionage-related activities. But the majority of the estimated four million Tor users rely on the browser primarily to help them overcome Internet censorship blocks or geographic restrictions on online video content.

Tor directs each user’s Internet traffic through a free, worldwide, volunteer network of more than five thousand relays to hide a user’s location and usage from anyone conducting network surveillance or traffic analysis. Technically, users who volunteer to run a relay may be in violation of Comcast’s acceptable use policy, which states (in part):

[Customers may not] use or run dedicated, stand-alone equipment or servers from the Premises that provide network content or any other services to anyone outside of your Premises local area network (“PremisesLAN”), also commonly referred to as public services or servers. Examples of prohibited equipment and servers include, but are not limited to, email, web hosting, file sharing, and proxy services and servers.

xfinitylogoBut whether the messages reported by Deep.Dot.Web were simply the result of an overeager support employee or actual company policy is now in dispute.

Comcast emphatically denied the customer contacts reported by Deep.Dot.Web ever took place and claimed Comcast has no restrictions on customers using the Tor browser.

“The anecdotal chat room evidence provided is not consistent with our agents’ messages and is not accurate,” said Comcast’s Charlie Douglas. “Per our own internal review, we have found no evidence that these conversations took place, nor do we employ a Security Assurance team member named Kelly. Comcast doesn’t monitor users’ browser software or web surfing, and has no program addressing the Tor browser. Customers are free to use their XFINITY Internet service to visit any website or use it however they wish.”

A company blog post this morning broadened the company’s denials:

Comcast is not asking customers to stop using Tor, or any other browser for that matter. We have no policy against Tor, or any other browser or software. Customers are free to use their Xfinity Internet service to visit any website, use any app, and so forth.

Here are the facts:

  • Comcast doesn’t monitor our customer’s browser software, web surfing or online history.
  • The anecdotal chat room evidence described in these reports is not accurate.
  • We respect customer privacy and security and only investigate and disclose certain information about a customer’s account with a valid court order or other appropriate legal process, just like other ISPs. More information about these policies can be found in our Transparency Report here.
  • We do not terminate customers for violating the Copyright Alert System (aka “six strikes”), which is a non-punitive, educational and voluntary copyright program. Read more here.
Share

Internet Slowdown Day is Here: Tell the FCC to Classify ISPs as Common Carriers

Phillip "It's common sense" Dampier

Phillip “It’s common sense” Dampier

The concept is so simple one might think there was nothing controversial about the common sense idea of requiring Internet Service Providers to handle Internet traffic equally.

But that would throw a wrench into the money-making plans of some of America’s top cable and phone companies looking for new ways to collect more money and bigger profits from selling Internet access.

Wireless phone companies have already got the Money Party started, throttling certain traffic while exempting partnered apps and websites from counting against your monthly usage allowance. Americans pay some of the highest prices in the world for broadband service, but it is never enough for some executives who believe the increasing necessity of having Internet access means companies can charge even more for access. With few competitive alternatives, where are you going to go?

With most Americans confronted with just two Internet providers to choose from, the stage is set for mischief. The normal rules of competition simply don’t apply, allowing companies to raise prices while limiting innovation to finding new ways to improve revenue without improving the service. That has worked well for stockholders and executives that green-light these schemes, but for all the money Americans pay for service, broadband in the United States is still way behind other nations.

A few years ago, the CEO of AT&T decided that collecting money from customers to provide Internet access wasn’t enough. The company now wanted compensation from websites that generate the traffic ISPs handle for their customers. In other words, they wanted to be paid twice for doing their job.

If you listen to some of America’s largest cable and phone companies talk, you would think that traffic from Netflix and other high-volume websites was sucking them dry. But in fact their prices and profits are up and their costs are down… way down. But that doesn’t stop them from contemplating usage-based billing and reducing investment in upgrades to keep up with demand. Netflix learned that lesson when Comcast refused to upgrade some of its connections which left Netflix streaming video constantly buffering for Comcast customers. Those problems magically disappeared as soon as money changed hands in a deal that leaves Netflix dependent on paying Comcast protection money to make sure customers can actually enjoy the service they already paid to receive.

internetslowdownhero-100413741-large

Former FCC chairman Kevin Martin believed competition would keep ISPs honest, but since he left at the end of the Bush Administration, competition has barely emerged for most of us. Julius Genachowski, the FCC chairman under President Obama’s first term gave some strong speeches about protecting Net Neutrality but caved to provider demands the moment he met with them behind closed doors. Today, FCC chairman Tom Wheeler presides over an agency that has repeatedly had its regulatory hat handed to them by the D.C. Court of Appeals, which has ruled time and time again that the current regulatory foundation on which Internet-related policies are enforced is completely unsound.

We can thank former FCC chairman Michael Powell for that. His decision to classify broadband as an “information service” during the first term of the Bush Administration carries almost no legacy of court-upheld authority the FCC can rely on to enforce its regulations. Powell’s innovation was warmly received by America’s biggest cable companies who quickly realized the FCC had regulatory authority over the broadband business in name-only. Powell’s reward? A cushy job as head of America’s biggest cable lobby – the National Cable and Telecommunications Association (NCTA).

Don't allow Comcast and others to slow down your favorite cat videos.

Don’t allow Comcast and others to slow down your favorite cat videos.

Wheeler used to hold that position himself, and his trip through D.C.’s revolving door connecting regulators with the regulated makes it unsurprising that Wheeler’s own Net Neutrality proposal is not far from what Big Telecom companies want themselves — permission to create paid “fast lanes” on highways that currently lack enough capacity to protect other traffic from suffering the speed consequences of prioritized traffic.

It reminds me of those highway projects where cars dutifully change lanes well in advance of lane closures while other cars blow past only to merge at the last possible minute, saving them time while slowing cars behind them to a crawl as they wait to move ahead.

Make no mistake – paid fast lanes will compromise unpaid traffic, reducing the quality of your Internet experience.

The best solution to this problem would be for providers to devote more revenue to regular network upgrades that benefit everyone, not create new ways to ration the Internet for some while letting others pay to avoid speed bumps and congestion issues that are easy and inexpensive to solve. But if your provider was already delivering that kind of capacity, there would be no market for Internet fast lanes, would there? Without Net Neutrality, providers have a financial incentive not to upgrade their networks and have little fear unhappy customers will switch to the other competitor likely trying the same thing.

Net Neutrality cannot just be a policy, however. A strong regulatory foundation must exist to allow the FCC to enforce Internet-related policies without having them overturned by the courts. That means one thing: reclassifying broadband as a telecommunications service subject to common carrier regulations.

Net Neutrality opponents like to claim that would saddle Internet providers with decades old telephone regulations that have nothing to do with today’s broadband marketplace. But in fact that regulatory framework was originally established precisely for the reasons we need it again today — a non-competitive, largely unregulated marketplace is exploiting its market power to abuse customers and artificially interfere with traffic just to invent new ways to make more money.

People forget that in the 1920s, AT&T not only monopolized telephone service in most areas (and had a history of refusing to connect calls made from competing telephone companies to its own subscribers even as it hiked rates to pay for “improvements”), it was also attempting to force its for-profit vision on the newly emerging world of radio: “toll-broadcasting.” AT&T insisted that radio stations charge a fee to anyone who wanted access to the airwaves, and imposed the toll system on its own stations, starting with WBAY-AM (later WEAF) in New York on July 25, 1922.

Westinghouse, GE, RCA, and AT&T maintained such strong control over broadcasting and telecommunications in the 1920s, the Federal Trade Commission eventually filed a formal complaint with Congress declaring the four had “combined and conspired for the purpose of, and with the effect of, restraining competition and creating a monopoly in the manufacture, purchase and sale in interstate commerce of radio devices…and in domestic and transoceanic communication and broadcasting.”

It took the Justice Department to finally force a resolution to protect competition and the free exchange of ideas on the airwaves with a 1930 antitrust lawsuit against the four companies. In 1934, Congress passed the Communications Act establishing the FCC as the national regulator in charge of protecting some of the values that monopolies tend to trample.

The thing about history is that those who ignore it are bound to repeat it. Whether we are dealing with railroad robber barons, a Bell System monopoly, or barely competitive cable and phone companies, if the conditions are right to exploit customers on behalf of shareholders looking for bigger returns, companies will follow through. In the first two cases, with little chance that natural competition would bring a solution in a reasonable amount of time, regulators stepped in to restore some balance in the marketplace and protect consumers from runaway abuses. That has to happen again.

  • First, reclassify broadband as a common carrier under Title 2;
  • Second, enact strong Net Neutrality protections under that authority.

And don’t you believe that old chestnut that sensible regulatory policies will impede investment in telecommunications. Other nations that have much better broadband than we enjoy (at lower prices) already have reasonable regulatory protections in place that promote and protect competition instead of protecting incumbent market power and impeding would-be competitors. Investment in upgrades continues to pour in, further widening the gap between the kind of service we receive and what customers in other countries get for a lot less money.

The deadline for FCC comments on Net Neutrality is Sept. 15. Sending one directly is simple, effective, and will take less than five minutes.

  1. Visit fcc.gov/comments
  2. Click on the proceeding 14-28 (usually in the top three)
  3. Complete the form and type your comments in the big box. Tell the FCC you want broadband reclassified as a common carrier under Title II as a telecommunications service and that you want strong Net Neutrality policies enacted that forbid paid fast lanes and provider interference in your Internet experience.
  4. Submit the form and you are finished.
http://www.phillipdampier.com/video/Democracy Now Internet Slowdown 9-10-14.mp4

If your favorite website seems to load slowly today, take a closer look: You might be experiencing the Battle for the Net’s “Internet Slowdown,” a global day of action. The Internet won’t actually be slowing down, but many sites are placing on their homepages animated “Loading” graphics , which organizers call “the proverbial ‘spinning wheel of death,’ to symbolize what the Internet might soon look like.

Large Internet service providers, or ISPs, like Comcast, Time Warner, AT&T and Verizon, are trying to change the rules that govern the Internet. Some of the biggest companies on the Internet — Netflix, Mozilla, Kickstarter, Etsy and WordPress — are joining today’s Internet Slowdown to draw attention to Net Neutrality, the principle that service providers shouldn’t be allowed to speed up, or slow down, loading times on certain websites, such as their competitors.

This comes as 27 online advocacy groups sent a letter to Federal Communications Commission Chairman Tom Wheeler Tuesday, calling on him to take part in town hall-style public hearings on Net Neutrality before ruling on the issue as early as this year. Democracy Now’s Amy Goodman talks with Tim Karr from the group Free Press, one of the main organizers of the Internet Slowdown global day of action. (7:15)

Share

Comcast Unveiling New, Faster Wireless Gateway; No Pricing Revealed But It Won’t Come Free

res gateway dpc3941In an effort to keep up with increasing bandwidth demands on customers’ home networks, Comcast has announced a new Cisco wireless gateway that supports 802.11ac and v2.0 of the Multimedia over Coax Alliance (MoCA) standard that supports a home broadband network over coaxial cable.

The new XFINITY Wireless Gateway will be Cisco’s DPC3941T, which includes a 3×3 MIMO design offering three spatial streams and 700Mbps speed across an 80MHz wide wireless data channel — two times faster than Comcast’s current fastest wireless gateway and considerably faster than competing gateways from AT&T and Verizon.

The new gateway includes a built-in DOCSIS 3.0 modem, but Comcast has not shared details about how many channels the unit can bond and it doesn’t support the next generation DOCSIS 3.1 standard.

The wireless gateway will not come free of charge, but Comcast has not indicated what the monthly lease fee will be. Many Comcast customers pay up to $8 a month to lease a wireless gateway/cable modem.

Only customers in selected markets will initially be able to get the new gateway due later this fall, with customers nationwide getting access sometime later. Comcast is inviting those interested to e-mail: [email protected] to learn when the new gateway becomes available.

Comcast’s newest model will support the XFINITY Wi-Fi project which opens up a community Wi-Fi hotspot on a separate wireless channel accessible to the public.

Comcast is expected to install eight million wireless gateways in customer homes by the end of this year.

Share

NY Post: Imposing Conditions on Comcast-Time Warner Cable Merger Would Be Useless

comcast cartoonIf regulators believe they can turn Comcast and Time Warner Cable’s mega-merger into a consumer-friendly deal in the public interest, they are ignoring history.

No matter what conditions regulators place on Comcast to approve its merger with Time Warner Cable, they will be toothless, television industry insiders told the New York Post.

Insiders suggest the Federal Communications Commission has been largely impotent enforcing conditions it required in earlier merger deals, including those Comcast promised to fulfill in its earlier merger with NBC Universal.

Among Comcast’s broken promises cited by The Post:

  • Comcast failed to live up to its promise to market its low-cost broadband service, Sen. Al Franken (D-Minn.), an outspoken critic of the NBCU deal, told the FCC earlier this year;
  • Comcast paid a fine for not marketing A standalone $50 broadband service widely enough;
  • The giant cable provider’s hollow commitment to Net Neutrality didn’t stop it from excluding certain XFINITY video content from its data caps;
  • They discriminate against non-Comcast owned cable channels, especially those that compete with network Comcast owns or controls. Examples include The Tennis Channel and Bloomberg TV.

Industry insiders claim the larger Comcast gets, the more the company spends on clever lawyering and lobbying to keep itself out of legal hot water with Congress and regulators. That has begun to worry programmers like Discovery Communications, who filed objections to the merger deal.

Discovery officials warned the FCC Comcast’s takeover of Time Warner Cable would deliver an NSA-like treasure trove of viewer data to the nation’s biggest cable company. Comcast already monitors its customers’ viewing habits with tracking software installed inside set-top boxes that monitors what customers are watching at any given time. Comcast has refused to share that data with outsiders, and uses it primarily to pitch potential advertisers.

Comcast’s size already gives the company unprecedented power over cable programming rates during negotiations. Making the company even larger worries Discovery, which expressed concern that:

  • Comcast’s use of its bigger muscle to impose prices, terms and conditions that are overly favorable (for instance, preventing programmers from selling over-the-top rights or refusing to give competitors to its own services wide distribution);
  • The possibility that the cable giant could impose broader “most favored nation” clauses in agreements;
  • That Comcast could exercise control over national and local ad sales markets to the detriment of programers who also compete there.
Share

Time Warner Cable Executives Getting Huge Retention Bonuses; Layoffs Likely at the Bottom

Phillip Dampier September 8, 2014 Comcast/Xfinity, Consumer News, Time Warner Cable No Comments
Money for some

Money for some

Time Warner Cable will pay $416 million in retention bonuses to the company’s top and middle management to entice them to stay with the cable company as its merger deal with Comcast is scrutinized by regulators.

The bulk of the bonuses will be paid to the company’s top executives in New York, but an additional 1,800 middle management employees would also receive twice their regularly scheduled annual equity award to compensate for canceled awards in 2015 and 2016. About 15,000 rank and file employees eligible to participate in Time Warner’s supplemental bonus program will receive a much smaller bonus — averaging less than $70 per employee.

While upper level management will gorge on cash and stock, middle management will receive stock only. Rank and file employees will receive a token payout amounting to 50 percent of their target bonus for 2014. Recipients may want to save the money. As part of Comcast’s plans to realize cost savings from the merger, many employees of Time Warner Cable’s call centers and technical staff may not have a future paycheck at all if the merger is approved. Comcast relies heavily on existing offshore call centers for customer service and subcontracts a significant percentage of engineering and service call work to third-party subcontractors.

Among the top recipients of the largesse:

  • Time Warner Cable CEO Rob Marcus, who will receive a golden parachute package worth $81.8 million in cash, restricted stock and stock options. Because his compensation package is so large, Time Warner Cable has also agreed to pay an extra $300,000 to allow Marcus to hire his own financial planning firm to manage the enormous sums involved;
  • The other top five executives of Time Warner Cable in New York will share more than $136 million in golden parachute compensation. They will have to figure out how to spend the money on their own.
Share

Britain’s ITV May Be Sold to U.S. Cable/Entertainment Conglomerate, John Malone, or Even Comcast

itvIndependent television in Great Britain may soon be in the hands of U.S. citizen John Malone, former cable magnate and head of the giant Liberty Global cable and entertainment conglomerate that has swept across western Europe through a series of mergers and buyouts.

Deregulation has allowed the prospect of Britain’s biggest independent network, dwarfed only by the BBC, to soon be owned lock, stock, and barrel by Americans.

U.S. media conglomerates have already picked up the smaller Channel 5 network, purchased by Viacom in a surprise $757 million deal.

ITV produces an enormous number of television shows for its network of regional independent television stations across England, Scotland, Wales, and Northern Ireland. It is these productions that are attracting attention from content-hungry U.S. media companies.

Liberty Global logo 2012John Malone’s Liberty Global is seen as a leading contender, already owning a 6.4% stake in ITV acquired from BSkyB for $824 million. Liberty Global and Discovery Networks have maintained close association and jointly bid $930 million to acquire All3Media, the production arm of reality shows like “Undercover Boss.”

ITV’s own needs for programming have increased dramatically with the introduction of digital free-to-air television across the United Kingdom. ITV’s single network, operating for decades, is today accompanied by ITV 2, 3, 4, Citv, and Encore.

Malone hopes to build a European media empire, and has amassed holdings including a takeover of Virgin Media and cable systems in Germany and the Benelux region.

Malone has wooed some of ITV’s biggest investors — all American — including Fidelity, which has a nearly an 8% stake, BlackRock, with 4.9%, and the California hedge fund manager Brandes, which has 4.8%.

Malone may face other bidders, however, notably Comcast-NBCUniversal, which has not yet publicly revealed whether it is interested or not.

Another potential benefit of the transaction would be to allow its American buyer to avoid U.S. taxes by relocating their corporate headquarters to Great Britain in a controversial practice known as tax-inversion.

Share

Search This Site:

Contributions:

Recent Comments:

  • Limboaz: You see, the thing is, any money spent by Comcast on customer service is money they can't spend on gobbling up even bigger chunks of the TV, Internet ...
  • Retta: Grrrr Cox!! We recently got charged a termination fee. I called to see what it was for, since I still had service. After 8 phone call transfers thro...
  • djl2442: And I thought no one could rival how bad Comcast and time warner cable are. 1 att call later to cancel service and it was like hell on earth. Was able...
  • The Kin: Good to see some good news in Kentucky for once. Since I live here, it's been a pain in the ass to get any type of real internet connection. I'm stuck...
  • MELODY: IVE BEEN CON<TRICKED INTO VERIZON DEAL I WANT OUT AND I NEVER SAW A CONTRACT!...
  • Paul Houle: It is really fun to watch apologists for the wireless industry squirm when you use the $10 a GB talking point which can be turned into: $100 to downl...
  • Tom M: Signed the petition and forwarded the link onto friends. Thanks for fighting the good fight, Philip....
  • Chuck: Craig Moffet is a joke, he beats up Sprint, has no idea what he's talking about, he must have considerable holdings in other carriers. Has he ever wor...
  • RG: You can thank the greedy cable companies for that. Cox for one, was supposed to support VOD on the Premiere with an agreement signed with Tivo about 4...
  • Tony: We cannot use On Demand (VOD) via Roamio. It is maddening....
  • KF: Tony, I also have Charter and have not been able to get On Demand (VOD) to work through the Roamio. Charter insists that VOD is impossible with the R...
  • Phillip Dampier: If enough U-verse customers say goodbye over data caps, there probably won't be data caps. They are just there to further monetize their operation, wh...

Your Account: