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Fox-Charter Showdown — Charter/Spectrum Customers Could Lose Fox Nets Wednesday

Phillip Dampier April 11, 2017 Charter Spectrum, Consumer News, Video 2 Comments

Every week brings the threat of yet another programming blackout because cable programmers want to be paid more and cable operators want to pay the same or less. This time, Fox Networks Group has sent a final warning to Charter Communications that their customers will lose several cable networks as soon as Wednesday if the two companies cannot reach a renewal agreement.

“Fox and Charter have an agreement to carry the Fox networks that Charter has chosen to ignore,” Fox said in a statement that was updated today. “We’re disappointed that despite our best efforts to reach a resolution, Charter Spectrum subscribers could lose access to multiple Fox sports and entertainment networks on April 12.”

The latest dispute surrounds the lucrative volume discounts that Time Warner Cable formerly negotiated for some of Fox’s non-news-related cable networks. Charter Communications acquired both Time Warner Cable and Bright House Networks to secure those kinds of volume discounts for itself. In general, the larger a cable system is, the lower the wholesale rate charged for cable programming. Charter hoped it could continue paying the lower rates Time Warner Cable managed to secure after acquiring the much larger cable system. But cable programmers are not buying Charter’s approach and in one case sued.

In March, Univision blocked Charter from carrying its Spanish-language networks Univision, Unimás, Galavisión, Univision Deportes and El Rey in a similar dispute. A temporary restraining order brought the networks back to the lineup a day later, at least temporarily. Univision sued Charter Communications in 2016 over the programming fee dispute.

A significant amount of money is at stake depending on which side ultimately wins in court.

In the case of Univision, Charter’s own contract with the Spanish language programmer expired on June 30, 2016. That would normally require Charter to negotiate a contract renewal that it knew would be more costly than what it paid under the old contract. Charter learned Time Warner Cable had negotiated a contract with Univision that delivered better volume discounts and was not set to expire until June 2022.

To allow Charter Communications to argue that Time Warner Cable’s contract should continue to apply after the merger, it structured its acquisition (on paper at least) to allow Charter to claim Time Warner Cable would continue to manage all of its cable systems. Charter’s lawyers argued that because “Time Warner Cable” is in charge, the wholesale rates Time Warner Cable negotiated should now apply to all Charter systems.

Univision, among other programmers, balked at Charter’s creative thinking.

“Everyone knows that is simply not true: the longstanding CEO and the senior executive team of Charter, as well as its pre-existing board of directors, now in fact manage and control all such cable systems, and virtually the entire TWC leadership team has departed,” Univision argued in its 2016 lawsuit.

If the programmers win, Charter will have to negotiate new carriage agreements at 2017 prices instead of continuing to pay the lower rates Time Warner Cable won for itself in the past.

A similar dispute is likely behind the current battle between Charter and Fox. Each time a cable company has to negotiate a new contract, programmers tend to ask for a considerably higher wholesale price for their channels and try to get cable systems to also carry their other networks. When a cable operator refuses to pay what it considers to be an unconscionable renewal rate or does not want to carry the programmer’s other networks, a showdown takes place that often leads to channels being temporarily removed from the lineup. Cable companies usually lose these battles after subscribers get hostile, but some smaller cable operators have walked away from programmers like Viacom for good when the renewal price stayed too high.

As is the tradition in these disputes, Fox launched a website and social media blitz to warn Charter customers they are about to lose access to 19 regional sports channels, FX, FXX, FOX Movie Channel, National Geographic TV, Fox Sports and Fox Deportes and asked customers to start calling Charter and complain. The current dispute does not involve the FOX (TV) Network, the Fox News Channel or the Fox Business Channel.

“We’re disappointed that despite our best efforts to reach a resolution, Charter Spectrum subscribers could lose access to multiple Fox sports and entertainment networks on April 12,” FOX wrote on its website. “Charter’s tactics could result in its subscribers missing our popular programming including Fox Sports’ telecasts of the St. Louis Cardinals and Blues, Kansas City Royals, Cleveland Cavaliers, Cincinnati Reds and many other MLB, NBA and NHL teams on Fox Regional Sports Networks, Fox Deportes, National Geographic, and FX’s hit dramas The Americans and Feud as well as much more award winning programming.”

“Fox is trying to gouge our customers using the increasingly common tactic of threats and removal of programming,” Charter responded in a statement. “They are attempting to extort Charter for hundreds of millions of dollars. We will continue to work towards a fair agreement.”

Fox Networks is using this ad to warn Charter Spectrum customers they could lose Fox programming. (0:30)

Boomerang Toons Online Video on Demand Launches: $4.99/Mo or $39.99/Yr

Phillip Dampier April 11, 2017 Consumer News, Online Video Comments Off on Boomerang Toons Online Video on Demand Launches: $4.99/Mo or $39.99/Yr

Cartoon lover? Turner Broadcasting and Warner Bros. have something for you: Boomerang’s Online Video on Demand service launches today, featuring more than 5,000 cartoons from the Looney Tunes, Hanna Barbera, and MGM toon libraries.

Boomerang is now available on Desktop, iPad, iPhone, and most Android devices with more platforms including Apple TV, Fire TV, Roku, and Chromecast coming soon.

Turner, which runs the companion Boomerang cable network, pushed aside its TV-oriented website to push the new on-demand online service instead. Turner officials said they would continue to distribute the linear-TV cable network, but the company could make even more revenue in the future putting the extensive classic animation libraries of three toon powerhouse studios online and on-demand.

Some of the cartoon characters featured on Boomerang Online Video on Demand.

Boomerang says they will add new cartoons every week to keep the service fresh and interesting to subscribers.

The introductory price:

  • $4.99 per month with a 7-day free trial;
  • $39.99 for 1 year of Boomerang with a 30-day free trial

Payments can be made with a major credit card or through iTunes or Google Play Store.

 

Comcast’s NBC Preparing Launch of Subscription “All Access”-Style Streaming Service

Comcast’s NBCUniversal is laying plans to introduce a premium online video service highlighting NBC Network content and possibly various programming from the various cable channels owned by Comcast.

After watching rival CBS amass more than 1.5 million subscribers for its “All Access Pass” ($5.99, $9.99/mo for commercial-free option), Comcast’s NBC entertainment division isn’t willing to leave money on the table any longer.

The yet unnamed service is expected to compete with services like Hulu and Netflix, but will most likely be comparable to CBS’ premium subscription offering. In addition to featuring a deep library of NBC content, the service could include a significant catalog of past and present shows from cable networks like Bravo, SyFy and USA. Also to be determined is whether NBC will follow CBS’ lead and offer viewers live streaming of their local NBC station as part of the package.

The new service may not launch in the immediate future because Comcast is still observing restrictions imposed by regulators as a condition of its 2011 acquisition of NBCUniversal. The rules make it difficult for Comcast to develop services comprised entirely of content it owns or controls. Federal regulators added the restriction out of concern Comcast could interfere with Hulu’s access to NBC content. Hulu is popular with cord-cutters, and is seen as a viable alternative to cable television. The last of these restrictions expire in September 2018, about the time Bloomberg News reports Comcast is likely to launch the service.

If all the major American networks decide to develop their own premium streaming services, it could have significant implications for Hulu, which combines content from its partners NBC, ABC, and FOX. If NBC pulls out of the partnership, it will be free to keep all the revenue earned from its own streaming platform, and could inspire ABC and FOX to follow.

Observers suspect this represents more evidence that broadcast networks increasingly expect viewers to pay for access to their programming, at least online.

Here’s What You Need to Know About Comcast’s Xfinity Mobile

Phillip Dampier April 10, 2017 Comcast/Xfinity, Competition, Consumer News, Wireless Broadband Comments Off on Here’s What You Need to Know About Comcast’s Xfinity Mobile

Comcast, the nation’s largest cable television operator, will compete for wireless customers with a new no-contract wireless plan that combines Verizon Wireless’ mobile network with Comcast’s installed base of 16 million hotspots installed in customer homes and businesses.

Xfinity Mobile will offer two plans — a pay as you go option for $12/GB and an unlimited calling, texting, and data plan that ranges from $45-65 a month. Customers spending about $150 or more on a Comcast X1 bundle of services will pay the lesser amount, while those with a more basic package will pay more. Customers must at least subscribe to Xfinity Internet service to qualify for the new wireless plan and live in a Comcast service area.

Comcast is powering its cell phone service with its MVNO agreement with Verizon Wireless, which grants the cable company the right to resell Verizon’s wireless network under the Xfinity brand. But Comcast hopes customers will use their devices the most while connected to an Xfinity Wi-Fi hotspot, available in most Comcast customer homes and an extensive network of businesses. To make sure that happens, devices acquired from Comcast will come pre-configured to automatically connect to Comcast’s Wi-Fi, where available.

Comcast’s “unlimited” $65 plan — likely to be the most popular option, is between $15-25 less than what Verizon and AT&T charge their customers for a comparable plan, at least for accounts with just a single device attached. Like other “unlimited” plans, Comcast has a fine print data cap: 20GB of wireless data usage per month, after which it will throttle the customer’s connection until the next billing cycle begins. Comcast intends to always impose the speed throttle once 20GB is reached, not just in areas with congested cell towers. But throttled speeds will be a less maddening 1.5Mbps instead of the usual 128kbps most carriers use to punish their data-heavy users.

Overall, the plan may deliver some savings to current Comcast customers unfazed by signing up for a “quad play” bundle of wireless, phone, TV, and internet access, especially for those bringing a single wireless line to Comcast. Customers with multiple wireless devices on a family plan may want to do the math before signing up with Comcast. Unlike other wireless carriers, Comcast does not offer a discount for additional lines. For most, the price will be $65 a month for each line. For an account with four lines, that would amount to $260 a month — $75 more than what AT&T charges for a similar four-line plan.

Comcast may also attract some interest from light users or those with devices like tablets. Comcast’s $12/GB data plan has no limits or minimum charges. If a customer doesn’t use the plan, there are no charges. If a customer on this plan approaches 4GB of usage in a billing cycle, they can upgrade to Xfinity’s unlimited wireless plan ($45-65) mid-month and then use up to 20GB of data with no extra charges or speed throttles. Customers can put some devices on an unlimited plan and others on a pay-as-you-go plan on the same account.

Early adopters ready to sign up when the service launches this May or June will need to buy new devices from Comcast. The company will sell current generation Apple iPhones, Samsung Galaxy smartphones, and a budget option from LG Electronics. Customers can pay for devices upfront or receive interest-free financing.

Comcast’s interest in entering the wireless business represents the latest effort to keep customers locked into Comcast’s suite of products and services. The more services a customer bundles with Comcast, the more disruptive it will be to switch to another provider.

“The economics really work,” Comcast CEO Brian Roberts said in January. “The goal of the business is to have better bundling with some of our customers who want to save on some of their bill and get a world-class product.”

Because Comcast will rely entirely on Verizon Wireless to provide cellular connectivity, the cost of getting into the mobile business is relatively low. Comcast struck a deal with Verizon several years ago giving the cable company “perpetual” access to Verizon Wireless, as well as any upgrades Verizon makes to its network in the future. However, Verizon still has the right to raise prices on Comcast, potentially slowing or stopping Xfinity Wireless from ever growing large enough to threaten Verizon’s profits.

Charter Communications is planning to introduce a similar wireless product in 2018.

Verizon Sued for “Knowingly Billing Customers for Fraudulent Charges”

Phillip Dampier April 5, 2017 Consumer News, Public Policy & Gov't, Verizon, Wireless Broadband Comments Off on Verizon Sued for “Knowingly Billing Customers for Fraudulent Charges”

Verizon will conveniently add fraudsters’ phone and service orders to your wireless bill until you catch the illegitimate charges and complain.

That is the basis of a new class action lawsuit filed in New York accusing the wireless company of billing customers for fraudulently obtained equipment and service.

Brooklyn lawyer Lowell Sidney told the New York Post it took five months of “autopay” charges almost $100 higher than normal before he noticed someone had obtained a new smartphone and service and billed it to his Verizon Wireless account.

“[Verizon] Fraud Services said that on Oct. 22, 2016, an unknown person entered a Best Buy store in Wesley Chapel, Florida, claimed to be [Sidney], and ordered a cellphone and phone service from Verizon,’’ the suit said. When Best Buy asked for ID, the imposter ran out of the store.

But that did not stop Verizon from running up Sidney’s bill for several months of phone financing installments and service charges.

Sidney’s lawyer told the newspaper it was clear the guy was a crook, but that did not stop Verizon from collecting money it knew didn’t belong to them.

Verizon’s fraud department confirmed Verizon’s corporate policy is not to notify customers about potential, suspected, or actual fraud. It is entirely up to customers to identify suspicious charges and prove to Verizon’s satisfaction those charges are illegitimate.

“The woman I spoke to was very candid — ‘That’s our policy,’” reported an outraged Sidney, and he’s suing to make the point Verizon should be doing a better job of protecting customers and should not be collecting money to which it is not entitled. He wants at least $75,000 in damages and wants other Verizon customers affected by fraud to receive settlements as well. He is also taking his business elsewhere after 17 years with Verizon.

“I am not sure if the competition provides comparable service, but to my knowledge, they don’t actively engage in defrauding their own customers,” Sidney said.

Sidney warns that “autopay” and electronic billing make it more difficult for consumers to scrutinize their bills and catch fraudulent charges because they have to seek out a monthly statement instead of getting one sent directly to them.

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