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WarnerMedia’s Streaming Service Will Cost $16-17 and Bundle HBO/Cinemax

Phillip Dampier June 6, 2019 AT&T, Competition, Consumer News, HBO Max, Online Video Comments Off on WarnerMedia’s Streaming Service Will Cost $16-17 and Bundle HBO/Cinemax

WarnerMedia’s forthcoming streaming service will showcase HBO and Cinemax at the heart of a one-size-fits-all streaming package priced at $16-17 a month, featuring premium movies and Warner Bros. vast movie and TV show collection. We wanted to enjoy those streams. Find out more about what makes a stunning home theater from this website.

AT&T plans to begin beta testing of the service later this year, with plans to sell the service to consumers as early as March 2020, according to the Wall Street Journal.

John Donovan, CEO of AT&T Communications, signaled AT&T’s “radical reshape” of television on a Credit Suisse Communications conference call event on Wednesday.

“The streaming strategy, whether you call it an OTT or IPTV or thin client, we’re going to transform our product,” Donovan said. “It is the consumer product I am most excited about since the iPhone. It radically reshapes what your concept of television is.”

The “new concept” is a radical departure from AT&T’s earlier plan to offer “good,” “better,” and “best” price points, varying the amount of content depending on how much subscribers were willing to pay. Instead, Donovan proposes one price point for every subscriber, with access to an unprecedented amount of content produced by one of the country’s largest Hollywood studios. Warner Bros. has produced thousands of movies and series since the early days of television in the 1950s and the advent of commercial filmmaking in the early 20th century.

Donovan

“The idea of three tiers never made much sense and is too complicated to fly in the marketplace,” analyst Craig Moffett of MoffettNathanson told the newspaper.

Despite the potential of an enormous library of streamed content, consumers may balk at WarnerMedia’s asking price, especially if they have no interest in HBO or Cinemax. Netflix’s most popular two-stream plan costs $12.99 a month and second place Hulu is available for $5.99 a month with ads or $11.99 a month without. Most niche streaming services like MHz Choice, CBS All Access, Acorn Media, BritBox, and other similar services are all under $10 a month. AT&T proposes to set its price higher than traditional premium movie network services like HBO, which usually costs $14.99, to protect the relationships and revenue it earns from cable, satellite, and telco TV providers. But AT&T’s new service may be a tough sell, especially considering forthcoming streaming services like Disney+ plans to launch Nov. 12 at $6.99 a month, and Viacom’s Pluto TV and Sinclair’s STIRR are ad-supported and free. In fact, most of the newly announced streaming services yet to launch are targeting much lower price points, fearing consumers may be nearing their budget limits for more content.

AT&T warns it may adjust pricing before the service launches next year, and there may eventually be a cheaper, ad-supported version, making the service comparable to Hulu. AT&T has also not disclosed how much original made-for-streaming programming it plans to include in the venture, which may be an important consideration to attract price-sensitive customers not interested in watching repeats and movies they can watch elsewhere. Consumers may also be overwhelmed and fatigued by the amount of content already available to watch through established players like Netflix and Hulu, so WarnerMedia may find their streaming service a difficult sell, especially as cord-cutters find prices for streaming live TV services already rising as fast as their old cable TV subscriptions.

Bronx, Monroe Counties Among the Worst in New York for Urban Broadband Users

Broadband service is available to 99.1% of the Bronx and 99.8% of the Rochester and its suburbs, but just 38.5% of Bronx residents are using the internet at broadband speeds (at least 25/3 Mbps) and only 54% of Monroe County residents are receiving a true broadband experience.

These two New York communities, one in the dense New York City area, the other straddling the Finger Lakes region and Western New York, are examples of the FCC’s vast over-count of consumers getting suitable broadband service and speed, according to Microsoft. The problem is much worse in rural areas where DSL speeds predominate and providers like Verizon and Frontier are in no hurry to upgrade their rural networks.

“These significant discrepancies across nearly all counties in all 50 states indicates there is a problem with the accuracy of the access data reported by the FCC,” Microsoft said about its findings. “Additional data sources like ours, as well as work by others to examine data in a few states or regions, are important to understanding the problem.”

Microsoft’s performance data is not alone representative of a local cable company not delivering advertised speeds. For example, in the Bronx, affordability issues mean that more residents rely on their cell phones and mobile connectivity for internet access. In Rochester, where true broadband speeds usually cost $50-65 a month depending on the provider, affordability is also a factor. But there is also the presence of local telephone company Frontier Communications, which has saddled Rochester with inferior DSL service it has no concrete plans to upgrade. Frontier DSL usually offers substandard speed of 12 Mbps or much less, making its customers part of Microsoft’s estimation of those underserved.

Schumer

Sen. Charles Schumer (D-N.Y.) complained about the state of broadband in New York, claiming internet speeds are “horrible” in much of the state and broadband providers are not being honest about advertised speed.

“When there’s slow internet, it drives you crazy​.​ ​You just sit and wait and wait and wait. It’s horrible,” Schumer said at a news conference held Sunday in Manhattan. “There’s a new report out that says our internet here in New York may​ ​be moving more like molasses than like lightning.”

Schumer is taking direct aim at the recent positive report from the FCC that broadband has dramatically improved in the United States, a conclusion the Republicans serving at the FCC took credit for, explaining policies of deregulation and elimination of net neutrality spurred private investment and better internet service for all.

“But Microsoft did its own report, and it shows that over four and a half million New Yorkers and Long Islanders are not getting the speed on the internet that the carriers say they’re getting​, [and] that’s a real problem,” Schumer argued, adding that most consumers are not getting consistent access to at least 25/3 Mbps service. “It’s like paying for the speed of a car but getting the speed of a bicycle.”

Schumer wants the FCC to hold providers to account for their broadband speed and performance. But last week, the FCC had other ideas, delaying broadband performance testing requirements until 2020 for internet service providers receiving taxpayer or ratepayer funds to build out their networks.

“T​he FCC is falling down on the job,” Schumer said. “I don’t think it’s nefarious but the providers, to upgrade to the required speed​,​ would have to pay for more equipment. They should. We’re all paying big bills for that.”

 

Spectrum Starts Selling Discounted $19.99/Mo “Lifestyle” TV Package With 50+ Channels

Phillip Dampier June 3, 2019 Charter Spectrum, Competition, Consumer News 17 Comments

Spectrum customers in some highly competitive service areas are being offered more discounted services than ever before, including a $20 Lifestyle TV package with 50+ cable networks and local channels can be bundled with up to 200 Mbps internet access for $59.98 a month for 12 months (not including the $11.99/mo Broadcast TV Fee).

Spectrum Lifestyle TV ($19.99/mo) includes all local TV channels, plus:

  • AMC
  • MSNBC
  • Arts & Entertainment
  • Cartoon Network
  • CNN
  • SyFy
  • Discovery Channel
  • EWTN
  • E!
  • Inspiration
  • Food Network
  • ION
  • Freeform
  • TBN
  • FX
  • WGN America
  • Hallmark
  • BET
  • Hallmark Movies & Mysteries
  • TV Land
  • HGTV
  • VH-1
  • Lifetime Channel
  • OWN TV
  • Oxygen
  • BET Jams
  • Spectrum News
  • BET Soul
  • TBS
  • Nicktoons
  • TLC
  • TV One
  • TNT
  • BET Her
  • USA Network
  • Aspire
  • Lifetime Movie Network
  • Revolt
  • History Channel
  • The Africa Channel
  • Animal Planet
  • The Impact Network
  • Spike TV
  • Nick Jr.
  • Comedy Central
  • Teen Nick
  • Bravo
  • The CW
  • Disney Channel
  • StarzEncore Black
  • Travel Channel

Customers can use their own equipment, such as Roku, Apple TV, desktop, or apps for iOS and Android, or rent traditional Spectrum set-top boxes for $7.50/mo each (add $4.99/mo to enable DVR service for one box or $9.99/mo for two or more boxes).

Spectrum’s traditional bundle promotion consists of up to 200 Mbps internet and Spectrum TV Select (125+ channels) for $89.98 a month, not including the $11.99/mo Broadcast TV Fee, so the stripped down Lifestyle TV bundle offers about $30 a month in savings.

Spectrum TV Stream is offered to cord-cutter/internet-only customers, but Lifestyle TV me be a more compelling deal.

If you want the Lifestyle TV package but want more channels, you can still save with this promotion by upgrading to the TV Silver package (175+ channels and HBO, Showtime, and the NFL Network) for $20 a month more, which is $25 less a month than what the traditional Double Play TV Silver and internet bundle costs.

Package Comparison (both offers include the same channel lineup and internet package)

  • Lifestyle TV Promo: $19.99 Lifestyle TV + $39.99 internet + $20 TV Silver Upgrade + $11.99 BTV Fee = $91.97
  • Traditional Double Play Promo: $44.99 Standard TV + $44.99 internet + $20 TV Silver Upgrade + $11.99 BTV Fee = $121.97

Stop the Cap! has confirmed this promotion is running in some AT&T service areas in the southern United States, especially Texas. You can confirm eligibility by visiting Spectrum.com and entering your street address, request to get pricing for new service, and selecting an internet-only package. The Lifestyle TV promotion will appear on the order page as a bundle option if you are qualified for the offer. Spectrum may offer you its other TV add-on packages, notably TV Stream ($24.99/mo), which is a less compelling streaming option with fewer channels at a higher price.

These offers and pricing are for “new customers only.” If you are a current customer, you can return your equipment at a Spectrum Cable Store location to cancel service without dealing with customer retentions, and then sign up as a new customer through the Spectrum website under the name of another family member or friend. Select self-install/pickup equipment in-store and you can get service under a new account on the same day. Otherwise, you must disconnect service for 30 days before qualifying again as a new customer. Depending on how much competition exists in your area, pricing and promotions can vary. Customers may find promotional pricing locked in for 12, 24, or 36 months depending on how much Spectrum is fighting to win customers in each area. Be sure to look out for free upgrades, particularly to 400 Mbps internet service, which is being offered in some areas.

Department of Justice Wants T-Mobile and Sprint to Create a New 4th National Wireless Carrier

Officials in the Justice Department are asking T-Mobile and Sprint to spin off a portion of their networks to lay the foundation to create a new national wireless carrier, with its own network, as a deal condition for approving their $26.5 billion merger.

Bloomberg News reports the launch of a new “fourth largest” U.S. wireless company would help win Justice Department approval for the merger deal, according to unnamed sources. Such a network could be created with the spinoff of Sprint’s Boost Mobile, a prepaid MVNO dependent on Sprint’s wireless network. Since a considerable percentage of Sprint’s existing network was expected to be scrapped after the merger won approval, Sprint could theoretically give up part of its network that would have been deemed redundant anyway to appease regulators. But Wall Street is unlikely to approve of the prospect of creating a new competitor, especially in a transaction designed to reduce the number of wireless competitors in the United States.

Boost Mobile, according to Reuters, could be worth $3 billion in a sale — potentially more if an already-built wireless network is included in the deal.

Critics wonder why the Justice Department would approve a deal merging T-Mobile and Sprint at all if officials were worried about reducing the number of wireless options for consumers. Industry observers suspect T-Mobile and Sprint would be unlikely to support such a network spinoff plan, and the resulting emergence of a new carrier likely to be even smaller than Sprint would leave it in a difficult position in a marketplace that would be dominated by three much larger national carriers planning to spend billions to develop 5G networks.

A source told Bloomberg News Justice Department antitrust chief Makan Delrahim “still wants four carriers” and remains unmoved by T-Mobile and Sprint’s arguments that combining operations would lead to more competition and lower prices for consumers. 

Many state attorneys general remain opposed to the merger, fearing that it will lead to less competition and higher prices.  They are waiting for the Justice Department to make its decision before contemplating lawsuits to block the merger if the deal wins approval in Washington.

Reuters Exclusive: T-Mobile, Sprint Could Sell Boost Prepaid for Up to $3 Billion, Potential Bidders Say

Phillip Dampier May 30, 2019 Boost Mobile, Competition, Public Policy & Gov't, Reuters, Sprint, T-Mobile, Wireless Broadband Comments Off on Reuters Exclusive: T-Mobile, Sprint Could Sell Boost Prepaid for Up to $3 Billion, Potential Bidders Say

(Reuters) – A group of potential buyers are preparing bids for prepaid wireless brand Boost Mobile in an upcoming sale valuing the offshoot of U.S. wireless carriers T-Mobile US Inc and Sprint Corp at up to $3 billion, interested buyers told Reuters.

The $26 billion deal between T-Mobile and Sprint won approval from the U.S. Federal Communications Commission last week after the two carriers offered concessions. It included the sale of Boost to reduce the combined company’s market share in the prepaid wireless business, where customers pay for phone service at the beginning of the month and are not required to pass a credit check.

While the deal awaits a ruling from the U.S. Department of Justice, interested parties are already preparing bids. The sale process is expected to begin after the Justice Department’s review.

Q Link Wireless, a prepaid brand and the third-largest provider of federally assisted wireless plans, is putting together a package to bid for Boost with private equity backing and could pay between $1.8 billion to $3 billion, founder and Chief Executive Issa Asad told Reuters.

The price will depend on the quality of Boost’s customers, such as their level of churn, or the rate of customer cancellations, the devices they are using, and what type of phone plan they are on, none of which the companies have disclosed, he said.

This month, analysts at Cowen estimated Boost has 7 million to 8 million customers and a transaction could be valued at $4.5 billion if the deal included wireless spectrum, or the airwaves that carry data, and facilities. Sprint has not disclosed the number of Boost customers.

Stephen Stokols, chief executive officer of prepaid wireless company FreedomPop, said an undisclosed private equity group he is speaking with have placed Boost’s future value at about $4 billion, such as in an initial public offering.

While FreedomPop is not a bidder, Stokols said he is advising a private equity group preparing a bid. If that bid succeeds, he believes the group would combine their acquisition with FreedomPop and have him lead a combined company with the Boost assets.

Peter Adderton, founder of Boost Mobile who sold the U.S. business to Nextel in 2004, which was then acquired by Sprint, has also said he is interested in buying back Boost. He declined to comment on his valuation for the business.

Adderton said he and his lawyers have urged regulators to require T-Mobile and Sprint to also divest wireless spectrum to ensure Boost will be a viable competitor in the market.

Adderton added that regulators must also ensure the new T-Mobile does not employ anticompetitive practices to harm Boost, and the contract between the companies should be non-exclusive, which would allow Boost to buy network access from other carriers.

The current sale agreement is devoid of details, but with the right terms, “we can create a dynamic player that will compete in the market,” Adderton said of Boost.

T-Mobile and Sprint did not immediately respond to requests for comment.

Reporting by Sheila Dang; Editing by Kenneth Li and Lisa Shumaker

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