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Time Warner Cable’s Annual Holiday Program Disputes: This Time MSG is Threatened

Phillip Dampier December 21, 2011 Consumer News, Video 2 Comments

It’s the holiday season which means it is a safe bet Time Warner Cable is in dispute with at least one of their programmers over rights fees.  This year, MSG Networks is threatening to pull the plug on Time Warner subscribers if the cable operator does not agree to a wholesale rate increase in contract renewal talks.

MSG is letting cable customers know their favorite sports teams are facing a video blackout if the cable operator doesn’t sign a renewal by the end of the month.

Time Warner Cable’s Jeff Simmermon says MSG is demanding a 53% rate increase, and double that if the cable company doesn’t put back MSG Media’s Fuse music channel, which Time Warner dropped in many markets.

It turns out there is plenty of room to negotiate between MSG’s 53% request and what Time Warner thought it had earlier agreed to — a milder 6.5% hike.  Time Warner spokeswoman Maureen Huff said if MSG gets their way, the sports network will become the most expensive channel on the cable dial — an expense that will inevitably find its way into the next rate hike for every cable subscriber.

The contract is due to expire Dec. 31.  Time Warner says it won’t pull the channel from its lineup, effectively daring MSG to block reception by switching off Time Warner’s digital satellite authorization for the networks.

MSG and MSG Plus are in the crossfire, and the biggest impact from the loss of either will be felt in Buffalo and New York City.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WIVB Buffalo Dispute may kick Sabres off Time Warner 12-16-11.mp4[/flv]

WIVB in Buffalo warns Time Warner subscribers to brace themselves for the potential loss of the wildly-popular Sabres hockey team.  (1 minute)

A Personal Note Regarding Our Publishing Schedule

Phillip Dampier December 20, 2011 Editorial & Site News 8 Comments

Regretfully, we have had to place my father in a comfort care home today as we near the end of his battle with cancer. It has been a difficult few weeks, which has made it difficult to maintain an intended publishing schedule, particularly over the last several days.  Readers may find a reduced amount of content published here for a time, as our family works through an especially difficult holiday season.

Your understanding is appreciated.

Updated: 12/21 — My father passed away early this morning and was at peace with the help of the great people at the Hildebrandt Hospice Care Center in Rochester, N.Y.  Our family is very grateful to them and to everyone who shared their well wishes with us.

Copper Thieves Wipe Out Phone Service in Eugene, Oregon

Phillip Dampier December 20, 2011 CenturyLink, Consumer News, Video Comments Off on Copper Thieves Wipe Out Phone Service in Eugene, Oregon

Copper thieves left thousands of phone customers in Eugene, Ore. without telephone service, forcing volunteer firefighters to get walk-in reports of fire and medical emergencies after 911 service was disrupted.

Authorities are looking for the suspects who scaled telephone poles and removed several hundred feet of critical phone wiring that provided service in the Eugene area.  CenturyLink officials rushed to pull new cables across phone poles to get service restored, and much of Eugene had their telephone landlines back within 24 hours.

CenturyLink and Oregon authorities claim copper thieves are now primarily targeting copper landlines because electrical lines are more dangerous and phone wire insulation is easier to burn or strip off, leaving the thieves with spools of bare copper wiring easily sold to scrap dealers.

Copper prices have spiked over the past few years, increasing interest among thieves.  Officials in several states have partnered with scrap dealers to try and limit illicit sales, and criminal penalties have been increased.

Occasionally, copper line theft also disrupts cell phone service, because many cell towers are still connected via copper circuits, especially in rural areas thieves favor.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/KMTR Eugene Phone Service Restored in Eugene 12-19-11.mp4[/flv]

KMTR in Eugene covers the latest copper caper affecting CenturyLink phone customers in Oregon.  (2 minutes)

 

Hype: Clear Cast — A $38 ‘New Invention’ That Eliminates Cable/Satellite Bills Forever?

Phillip Dampier December 19, 2011 Consumer News, Editorial & Site News, Video 160 Comments

An ad in the Syracuse Post-Standard announces a new invention -- a variation on the bow tie antenna design originally designed in the 1950s.

Last Thursday, Syracuse newspaper readers were treated to news of an impressive breakthrough that promises to deliver salvation from high cable and satellite TV bills forever.

Clear Cast, a “razor thin” indoor digital HDTV antenna lets you watch television… for free.

The product is shown being packaged up for shipping while an impatient-looking FedEx driver tries to coordinate the apparent extraordinary demand for a downright revolutionary development in television engineering.

Local residents called the newspaper and other local news outlets to try and learn more about the curious new device.

Stop the Cap! can now report the revolution can be postponed.

In fact, the published account  about the “new invention” was actually a paid advertisement-designed-to-look-like-a-news-story.  Clear Cast is effectively a variation on the traditional indoor UHF bow tie antenna your local Radio Shack used to sell for $1.49.  The major difference is that it is designed to be attached to a window with accompanying suction cups.  That is a valid approach to improving reception, but whether it is worth the asking price of $38 is another matter.

As consumers seek alternatives to higher cable and satellite TV bills, overhyped ad copy promising freedom from high bills cannot be far behind.  Repackaging basic antennas that were part of our lives from the 1950s-on can go too far when leaving some residents with the impression they are getting more than a basic television antenna.

In fact, over-the-air viewing can be easily accomplished in strong signal areas with the cheapest antenna, as long as it is designed for both VHF and UHF reception.  Many VHF stations with channel numbers from 2-13 quietly relocated to the UHF dial, but still advertise their original channel numbers.  If your television is not equipped with a UHF antenna, reception may be difficult.

For the benefit of those under the age of 40: most televisions used to come equipped with both antenna designs — two elongated antenna rods some used to call “rabbit ears” and an accompanying round loop antenna, or often a bow tie design that clipped to one of the two longer aerials.  The long straight antennas are designed for VHF signals, the bow tie or loop design accommodated improved UHF reception.

Over the last decade, marketing has attempted to revolutionize what remains basic, sober, antenna design — with an accompanying “revolutionary” price tag.  When satellite television was first introduced, some manufacturers redesigned set top aerials to look like a satellite dish and then pitched them as “saving you the high price of satellite TV because it is not satellite!”  In today’s HD-ready era, marketers have done it again.

Will Clear Cast work?  Undoubtedly, but probably not much better than any other traditional bow tie design that costs $35 less.

If you are cutting cable’s cord and want to rely on over-the-air television, our best advice is to start with something inexpensive and upgrade only when necessary.  In urban and suburban areas, an effective indoor antenna can cost less than $5.  Try repositioning it until you find the best spot to receive the most channels with the least signal reception errors.  Directional indoor antennas can offer mild signal improvement, especially in areas where adjacent signals from nearby cities create reception problems.  Because the American digital broadcast standard is frankly less robust than the European counterpart, those in more distant suburbs or rural areas will really need to invest in a rooftop antenna to enjoy consistent reception.  A potential compromise would be to mount an outdoor antenna in the attic.

Avoid “futuristic” designs and powered indoor antennas and read consumer reviews carefully.  We’ve found most indoor antennas priced above $35 to be more hype than performance-per-dollar.  If you need an outdoor antenna, check your local Yellow Pages for antenna specialists who understand local reception conditions and can recommend high quality, long lasting antennas that will work for the stations you want to receive.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/WSYR Syracuse Newspaper ad for free TV The Real Deal 12-15-11.mp4[/flv]

WSYR in Syracuse investigates the ‘revolutionary’ new indoor TV antenna that is so popular, only residents in certain zip codes can order it.  (2 minutes)

Cablevision Executives Head for the Hills: Rumors of Dolan Family Takeover or Buyout Emerge

Phillip Dampier December 19, 2011 Cablevision (see Altice USA), Competition, Video Comments Off on Cablevision Executives Head for the Hills: Rumors of Dolan Family Takeover or Buyout Emerge

Cablevision's top executives head on out. Tom Rutledge (left) and John Bickham (right) left within weeks of each other.

The unexpected and sudden departure of two senior executives at Bethpage, N.Y.-based Cablevision has pushed the rumor mill into overdrive the cable company is about to be sold or taken private.

John Bickham, president of cable communications and chief operating officer Tom Rutledge will both be spending more quality time with their respective families after departing Cablevision.  Last Thursday’s announcement that Rutledge would resign caused Cablevision’s stock price to drop by nearly 14% during trading Friday.

The inevitable conclusion on Wall Street: Cablevision is about to be sold or taken private.

Major shareholders and investment firms have criticized Cablevision over the years for being “too successful” signing customers to fixed price double or triple-play packages that provide a full suite of products and services, but deliver few growth opportunities shareholders demand. With heavy competition from Verizon FiOS in most of their service areas, Cablevision’s ability to simply raise rates is limited, especially when customers bounce between promotional offers from the phone and cable companies.

Rutledge’s departure, in particular, has been seen as a major negative on Wall Street because he was responsible for many of Cablevision’s most innovative products, including streamed video, his advocacy for boosting broadband speeds, and the company’s aggressive move into home security.

Craig Moffett, a Wall Street analyst from Sanford Bernstein, thinks Comcast and Time Warner Cable are set to divide the spoils in a shared buyout — Comcast grabbing northern New Jersey and Connecticut and Time Warner Cable assuming control of Cablevision’s systems in New York.  But other analysts don’t think that scenario is so likely, especially when considering the Dolan family’s long history in the cable business.

ISI Group Inc. analyst Vijay Jayant told Light Reading Cable he believes the more likely scenario would have the Dolan family buying out shareholders and taking the cable company private.

Time Warner Cable has repeatedly informed shareholders the company will not engage in bidding wars or overpay to win new acquisitions, and the Dolan family’s selling price for Cablevision is likely far higher than Time Warner would be willing to pay.  Comcast might have a political problem assuming control of more cable systems after its recent merger with NBC-Universal.  Shareholders may also rebel, as they did in a 2007 effort to take Cablevision private.  Investors felt they were offered too low a price to compensate them for their shares.

Moffett believes Cablevision’s days of high earnings and rapid growth are behind them, because just about everyone who wants cable service already has it, either from Verizon FiOS or Cablevision.

“No, we don’t think [Cablevision] can grow. And, no, we don’t think the rest of cable is doomed to the same fate,” Bernstein’s Moffett wrote in a report in late November. “The cause of [Cablevision’s] growth decline is straightforward: it has been so successful in achieving high product penetrations that growing further is quite challenging.”

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/Bloomberg Joyce Says Cablevision May Be a Takeover Target 12-16-11.mp4[/flv]

David Joyce, media analyst at Miller Tabak & Co., talks about Cablevision Systems Corp. Chief Operating Officer Tom Rutledge’s resignation and the outlook for the company.  Bloomberg News.  (5 minutes)

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