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Designed to Fail: More on Time Warner’s ‘Mini-Me’ TV Essentials Package & Rate Increases for Upstate NY?

Phillip Dampier November 22, 2010 Consumer News, Editorial & Site News, Video 10 Comments

Additional details about Time Warner Cable’s new TV Essentials package, which provides a more limited cable TV lineup to viewers are making their way to Stop the Cap!

So far, Wall Street appears generally unimpressed with Time Warner’s efforts to retain customers planning to depart the cable company over cost issues.  Richard Greenfield of BTIG says consumers have to give up too much to subscribe to a package that deletes many of America’s most popular basic cable networks and delivers no HD programming.

The package seems to alienate every age group.  Stop the Cap! confirmed Time Warner Cable made most of the decisions about the channel lineup themselves, and although some networks are insistent about not being excluded from such packages, many of the decisions about what channels to leave out were made by the cable company.  For example, younger viewers will miss Comedy Central despite the fact the network is hardly the most expensive basic cable channel around, and nothing prevented them from carrying it.  We’ve also learned the Essentials package deletes several more channels some consumers will consider deal-breakers to lose.  We’ve confirmed in Ohio, customers will have to give up Food Network and The Weather Channel.  No Ms. Palin’s Alaska either — TLC is also off the channel lineup.

We’ve learned from a few of our readers in Akron and Cleveland who inquired about the new package that Time Warner told them they cannot continue to get phone or Internet service with the Essentials package on their account.  We earlier heard customers were supposed to be excluded from promotional deals for these services, not banned from buying them at any price.  We’re trying to get a confirmation from Time Warner’s northeast Ohio division about this, and suspect there might be some mis-communication going on here.

Greenfield adds Time Warner is offering a lousy deal to budget-minded consumers.

“Cable subscribers looking to save money have already defected to Dish Network’s $40 package called America’s Top 120, which is better than TV Essentials,” he noted.

Meanwhile, residents in upstate New York — watch out.  Time Warner Cable is finalizing its decisions about 2011 rate increases which are likely to be announced in mailers sent just after the holidays.  A source tells Stop the Cap! the rate increases will echo the ones in North Carolina.  The biggest rate increases will hit customers only getting one or two services from the cable company.  Video customers can expect the largest increases.  Phone rates will likely remain unchanged for most.

Customers will be encouraged to avoid the rate increases by bundling services.  Time Warner Cable raised rates on western New York customers three times in 2010 for different services.  This rate increase, likely effective in February, will be similar in percentage to the one announced last winter.  The company will blame programming costs and also use the introduction of several new services, including Primetime on Demand, Look Back, and Remote DVR as  justification for the rate hikes.

We’ll have much more coverage on this in late December.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WFMY Greensboro TWC Rate Hike 11-22-10.flv[/flv]

You can preview the excuses for forthcoming rate hikes from Time Warner Cable by listening to a company representative in North Carolina deliver them to customers there, who will see their rates increase Dec. 3rd (from WFMY-TV Greensboro).  (2 minutes)

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siouxmoux
13 years ago

Time Warner, Comcast, Dish, Directv, ATT UV ect. all the Providers are raising rates.

Terry
Terry
13 years ago
Reply to  siouxmoux

Market saturation is occurring. Now the only way to increase profits is to either deliver services that people want, provide better customer service or increase fees. The first two are the two that will please customers and make them happy. But they cost money. The last one angers customers but lines pockets in the short term and doesn’t cost money to do. TWC likes to take the cheap easy route. It’s so much easier than investing in the customer.

Uncle Ken
Uncle Ken
13 years ago

Then get out / off. They won’t live for long with no customers. no TV. To be fair it does
take some money to run the structure but not the amount they think they need. BTW
How are those smart phones and data plans smelling today at their costs? Nice to have
money but you wont do it so bitch and moan about it
because that is all i am seeing.

Tim
Tim
13 years ago
Reply to  Uncle Ken

“Then get out / off. They won’t live for long with no customers.”

People are getting off cable. IIRC, Time Warner lost more customers on the television side than they gained, which was a first in their history. This is what pretty much sparked all of this. But this is just a slap in the face to consumers looking to save money. This package is useless and isn’t competitive at all. Give me some of the crack that Time Warner CEO is smoking. It must be some good stuff.

Ian M.
Ian M.
13 years ago

I also think this will fail, and I’ll be watching to see it how it unfolds. I’m just curious about where those rate hikes will affect customers of Time Warner Cable nationwide or just in Upstate New York?

Anonymous
Anonymous
13 years ago

More rate increases for consumers. Just in time for the holidays, when people need their own money THE MOST.

Anonymous
Anonymous
13 years ago

I dont think you understand what it does cost to run a business. Time Warner Cable pays per channel/per provider. For example, TWC pays HBO $16 per customer. Fox Entertainment raised their rates over 45%. Where else are they supposed to make up the extra money going out?? Customers……

Baloc1
Baloc1
13 years ago

dont pay that guy any attention , The cable companies are nothing but a ripp off , just like the ISP’s
there will always be idiots who will try and always justify corporate greed .

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