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Inside Time Warner Cable’s Free Cable/Reward Programs for Realtors, Property Owners, and Landlords

Phillip Dampier September 24, 2013 Competition, Consumer News, Public Policy & Gov't 7 Comments

courtesy accountsWhen you bought a home or moved into an apartment, were you offered a special discount deal to sign up with Time Warner Cable? Or is cable television already provided as part of your lease?

While everyone enjoys saving on cable television, telephone and broadband service, chances are your landlord or the person who lets the cable installer into the building is getting a better deal than you ever will.

Cable companies often (quietly) offer realtors, builders, condo association leaders, landlords, superintendents and even their assistants free or deeply discounted cable service for a variety of reasons:

  • Building owners and builders are given special consideration to help encourage contract agreements that offer bulk cable service to every resident in the complex. The cable operator usually also gets exclusive use of inside wiring, discouraging the competition;
  • Realtors and property developers are often paid in cash for new subscriber leads, usually resulting from “welcome to your new home” move-in kits, “concierge” services offered by your realtor, or special flyers left at your door that pay rewards every time a customer signs up;
  • Superintendents, landlords, and maintenance staff get free service in return for making life easier for Time Warner Cable technicians trying to get into a large multiple dwelling building on service calls. Free cable, including complimentary HBO and Showtime is almost always an effective incentive for those that can otherwise make life very difficult for service providers.

realtor_topTime Warner Cable has provided free or deeply discounted “courtesy accounts” for more than a decade. For much of that time, the informal agreement required the recipient to provide little more than convenient building access for Time Warner Cable technicians. Participants in the program were also asked to pass along any service issues or complaints.

Sometimes, even customers act as informal salespeople for cable service. Time Warner’s “Shared Savings” Bulk Discount program is available in buildings where 40 residents or 50% of the building, whichever is greater, can be convinced to commit to a service contract with Time Warner Cable lasting up to three years. In return, customers are promised free standard installation, bulk-rate Digital TV service, discounted broadband and phone service, and flexible billing options that can either bill residents directly or dispatch a single monthly invoice to building management where service is bundled with a renter’s lease agreement.

This week, the New York Times reported Time Warner Cable was reviewing its courtesy accounts program and asking participants to recommit themselves (and include their Social Security number on an included IRS tax form).

shared savingsDetails about Time Warner’s Apartment Managers’ Program are hard to find. No cable company wants to openly advertise that select customers are getting cable service for free while others watch their bills continue to grow and grow. The Times outlines the new agreement the cable company is requiring New York City program participants to sign.

Real estate workers are now asked to send employment verification along with a signed, formal contract that includes commitments to act as a goodwill ambassador for Time Warner Cable, help the company sell products, and snoop on tenants suspected of stealing cable.

“It is the intention of Time Warner Cable to provide the Promotional Services contemplated in this Agreement to further solidify and enhance the mutually beneficial business relationship between your property and Time Warner Cable,” one California Time Warner Cable contract states. “In keeping with the spirit of this relationship, we expect the Recipient to be our goodwill ambassador to all employees and residents by positively promoting our products and services. […] Time Warner Cable employees will be allowed access to the property to install, maintain and market services door to door between the hours of 8AM and 9PM.”

min requirements

The Times reports few real estate professionals have any ethical problems making sure the cable company has a reliable point of contact in the building to let workers in without delay and there isn’t much controversy over requests to report service problems either.

But there are concerns about language that informally appoints building workers as deputy ambassadors and marketers of Time Warner Cable products. One offer rewards a free month of Internet to a program participant for every three leads that turn into sales.

timewarner twc“We would consider that a borderline kickback,” Michael Jay Wolfe, president of Midboro Management, a large building management company told the newspaper. “I mean, what are they going to be selling next, Tupperware? They work for the building. They’re not an agent for anybody else.”

Others object to a clause requiring them to “identify, discourage and report” signal theft or equipment tampering, effectively spying on tenants.

Another reason some are balking is Time Warner’s insistence on a signed W-9 tax form, which includes the recipients’ Social Security number. In return, to comply with federal law, the cable company must issue an IRS Form 1099-MISC to all individuals that receive courtesy services worth $600 or more in a calendar year. In other words, the IRS is going to know the identities of those getting compensated with free cable service, which may have tax implications, making the service no longer free in the eyes of the tax man.

Ziggy Chau, a spokeswoman for Time Warner Cable defended the program saying it was intended to help customers.

“If there are service issues, customers want those issues fixed yesterday,” said Chau. “The people in these programs, they’re not going to do it for free. We’re building a good relationship.”

Some real estate workers are refusing to sign the new agreements and losing free cable as a result.

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Mileena
Mileena
10 years ago

Many businesses have some type of affiliate or referral program. Seems legit to me *shrug* If anything is questionable it might be what landlords or particularly those in large buildings are doing to make their customers choose TWC so they can get the benefits… but that would be on them, not TWC.

Scott
Scott
10 years ago
Reply to  Mileena

That’d be fine, but what we often see is these large rental companies signing exclusive agreements for larger and guaranteed kickbacks to offer cable from companies like TWC ONLY.. giving them a monopoly and not allowing residents to choose their own provider for internet or TV, unless they’re willing to throw the $55.00+ away that’s already built into their rent and not refundable should they choose anyone else. Plus this just turns into a game of bribes, and kickbacks for everyone like we see rampant in NYC, you don’t get through the door of a building if you aren’t greasing… Read more »

Mileena
Mileena
10 years ago
Reply to  Scott

Good points Scott, I didn’t know how bad it was down in the city like that. Refusing other companies to even come in and do legitimate service calls is BS. I do still think the issue is the landlords though, or whoever is doing shady things for the incentives. They should be arrested. But I have heard many stories of landlords getting away with everything… it’s a double sided sword I guess.

ETA- and here’s another article on here about just such a thing… despicable people. http://stopthecap.com/2011/10/06/time-warner-says-they-cant-restore-service-because-building-manager-wants-free-cable/

txpatriot
txpatriot
10 years ago
Reply to  Mileena

FCC rules prohibit cable companies from signing exclusive deals with landlords that prevent tenants from being able to choose their own cable provider. If you suspect your apartment or condo of forcing such an arrangement on you, you can complain to the FCC.

Just understand that the FCC’s jurisdiction is limited to the cable industry, NOT property managers or landlords. The FCC can sanction a cable company that signs such an exclusive deal, but it can’t do anything about landlords or property owners that sign such deals.

Scott
Scott
10 years ago
Reply to  txpatriot

That’s the problem here though, it’s not the cable companies making the deal exclusive, they’re just giving the incentives to the landlords, so it’s in the Landlords interest to make the deal exclusive for more profits. As long as it’s the landlord making sure the tenant has no choice or bundled so they get it whether they want it or not, FCC has no say. I’ve personally been in those situations since I’ve moved allot across the country and lived in a many different buildings, the worst are the large high-rises with the big management companies. I’ve also fought with… Read more »

txpatriot
txpatriot
10 years ago
Reply to  Scott

I’m glad you were able to install your sat dish. That is one area where the FCC HAS gone after landlords and multitenant property owners.

katherine
katherine
9 years ago

I need help with this too! Thanks for the info. BTW, if anyone needs to fill out a Residential Lease Agreement 2 form, I found a blank form here http://goo.gl/iMh5IS

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