Apparently the “fight back” component of Time Warner Cable’s campaign against the high cost of cable has not been a stunning success because the nation’s second largest cable operator continues to roll over its subscribers with some striking rate hikes, this time across upstate New York.

The usual promotional brochure began appearing in mailboxes across the state, filled with glowing words about all of the wonderful things Time Warner Cable did for you since your last rate increase, and promises for more wonderful things to come… along with fine print language at the bottom subtly labeled “2010 Rates.”  They don’t even call it a rate increase anymore, although it will cost most video and broadband subscribers in Rochester an additional $7.70 a month — $92.40 a year, effective February 1st.

After the company complained back in April it “needed” to engage in Internet Overcharging experiments to use that revenue to upgrade networks, the additional $3 a month/$36 a year they will get from millions of Road Runner subscribers in New York alone should be more than enough to do just that.  Those on lower speed economy tiers are also facing rate hikes: $3 a month for Road Runner Lite and $4 a month for Road Runner Basic, reaching $22.95 and $29.95 a month in Rochester, respectively.

As a concession to Rochester, one of the last remaining cities in New York still stuck with 384kbps upload speeds, the company will increase the upload speed for the division’s Standard Road Runner service customers to 1Mbps sometime in 2010.  Those with Road Runner Turbo will probably see upload speed increasing to 2Mbps, accordingly.  But Rochester still isn’t on the upgrade list for DOCSIS 3, bypassed because of the very limited competition Frontier offers the cable company locally.  Verizon FiOS fiber to the home service is being provided in most other large New York cities.

You probably didn’t ask for it, but you’re going to get it anyway: NBA TV HD and the Sundance Channel was added today to the Rochester-area’s digital cable tier.

Time Warner Cable's new rates for the Rochester/Finger Lakes region of western New York become effective February 1st.

Meanwhile in the state capital Albany, news of the rate increase was particularly unwelcome in the hard hit upstate economy.  The Albany Times-Union called the rate increase “an insult” on hard-hit New Yorkers:

Your neighbor lost his job, the housing market is in the tank, and the economic recovery is nowhere in sight.

And now to add insult to injury, as other household costs rise, your cable TV bill is going up next year too — in some cases by nearly 10 percent.

Time Warner Cable sent a flier to local customers this month with the new prices. Except for the most basic package, all the rates are going up. The “basic with standard” TV package, which includes dozens of mainstay cable channels such as CNN, ESPN and Comedy Central in addition to local broadcast channels, will rise 9.7 percent to $61.95 a month from $56.45 currently.

The company’s “All the Best” package that combines TV with Internet and phone service will go from $139.95 a month to $146.95 a month, an increase of 7 percent.

[flv]http://www.phillipdampier.com/video/WTEN Albany Time Warner Bill Increase 12-31-09.flv[/flv]

WTEN-TV Albany reports that Time Warner Cable’s latest rate increase will cause many upstate New York residents to drop premium channels in even greater numbers to economize. (2 minutes)

Verizon FiOS, for now anyway, will be cheaper than most of Time Warner Cable’s packages in Syracuse.  The Salt City faces rate increases averaging six to eight percent.  Time Warner Cable spokesman Jim Gordon blamed the rate hikes on the same things cable always blames rate hikes on — increased programming costs.  From the Syracuse Post-Standard:

Time Warner spokesman Jim Gordon said there are two major reasons for the increase: higher prices charges by the providers of programs and the rising cost of doing business. Customers are using more services more often, Gordon said, and cable is becoming more important in people’s lives.

In 2009, the number of channels on which the “start over” feature is available rose from 45 to 90, and customers used the feature 10 million times, he said. Customers also watched 85 million videos on demand, he said. “People are staying home more, and they’re hunkering down and they’re utilizing these services,” he said.

Cable operators are free to raise rates on everything except the basic service of broadcast and educational channels, for which operators need permission of regulators.

Below is a list of popular packages and corresponding rate increases:
• Talk ‘n’ View package, of telephone and cable television service, will rise from $100.50 to $108.95 – an increase of about 8 percent.
• Surf ‘n’ View, a combination of Internet and cable television, will increase from $105.50 to $111.95, an increase of 6 percent.
• All the Best, which combines cable, internet and phone, will rise from $135.50 to $144.95, or 7 percent.

Prices are slightly lower with Verizon Communications Inc.’s FiOS, which recently entered the Central New York market and offers a basic package of telephone, Internet and cable television for $109.99 to $129.99.

Further north in Watertown, rates are also increasing by 6 to 8 percent starting February 1st, the second increase in the past 11 months. Time Warner last raised its rates in March.

Time Warner Cable spokesman Jim Gordon said the current increases are due to price increases by programmers and an increase in the company’s cost of doing business. Gordon also cited an increase in the use of the company’s features including “Start Over” and video on demand.

“People are staying home more because of the current economic situation, and customers are finding value in these enhancements,” Gordon said.  The Watertown Daily Times notes Gordon doesn’t think subscribers will mind enough to leave.

“Our goal in doing this is to enhance the customer experience,” Mr. Gordon said.

Mr. Gordon said he doesn’t think the rate increases will prompt many Time Warner Cable customers to switch to another provider, because of the local customer service the company offers.

“We’re more than ready to compete,” Mr. Gordon said.

Customers can expect to see the following increases on their cable bills this year:

• A combination of standard and basic cable service costs will increase from $62.50 to $67.75, an increase of about 8 percent.
• The Surf ‘n’ View package will increase from $105.50 to $111.95, an increase of about 8 percent.
• The Talk ‘n’ View package will increase from $100.50 to $108.95, an increase of about 8 percent.
• The All the Best package, including cable, phone and Internet service, will rise from $135.50 to $144.95, an increase of about 7 percent.

Verizon FiOS, a new cable provider in the area, has a basic package that includes cable, telephone and Internet service for $109.99 to $129.99.

Satellite television provider DirecTV also has announced rate increases of 3 percent to 5 percent, which also will take effect Feb. 1.

Watertown residents noted the irony of the company’s “Roll Over or Get Tough” campaign in light of today’s rate increase.

“Imagine if you went to the supermarket and they told you that you had to buy 100 items you didn’t want and would never use for ever item you actually wanted. This is how Time Warner Cable operates,” one writes.

A Raymondville resident remarks, “Isn’t it strange after Time Warner solicits its customers to support their get tough effort to fight with the Fox networks in negotiations over price increases for programming that they can institute one of their own? Is this the real reason that they lobbied all of their customers? Is this the beginning of setting things up so that we end up paying for every channel that we watch? If enough people push to get rid of the junk they give us, that we never watch, so we get a package we will? It almost sounds like a shell game in which the pea is not under any of the shells, a no win situation for subscribers no matter how it shakes out. New businesses have been created here ones in which someone has figured out how to get money from consumers without really doing anything to get it. The New American Way. Welcome to the new Millennium.”

Cablevision, the nation’s fifth largest cable operator, yanked Food TV and HGTV from suburban New York cable systems early this morning in another fight over programming fees.

The two popular cable channels, owned by Scripps Networks, were “no longer authorized” to be shown to Cablevision customers after the two companies failed to reach an agreement over what the cable operator should pay per month for the two networks.

Perhaps overshadowed by the bigger profile Time Warner Cable-Fox dispute which impacts cable customers across the country, the fight between Cablevision and Scripps has been nasty even by the standards of knockdown, drag-out fights characterizing most of these contract spats.

Cablevision characterized Scripps as “financially troubled” in its own account for the press this morning:

“We are sorry that Scripps’ current financial difficulties are making it impossible for them to continue our relationship on terms that are reasonable for Cablevision and our customers,” the company said in a statement. “We wish Scripps well and have no expectation of carrying their programming again, given the dramatic changes in their approach to working with distributors to reach television viewers.”

That’s about as final as it gets, as the cable operator signals it’s done haggling over prices, at least for now.

Cablevision has a website of its own to explain the decision to drop the two networks

As usual, customers are caught in the middle in an advertising and PR war back and forth.

[flv]http://www.phillipdampier.com/video/Cablevision Message on HGTV Food Channels.flv[/flv]

This morning, Cablevision customers found this message running on the channels formerly occupied by HGTV and Food Network.

Scripps has set up websites for consumers to get their take on the matter, and has also taken to running some 30-second ads of its own, along with network personalities giving their testimony about why the channels are going to be missed.  I Love HGTV and I Love Food Network largely mirror each other’s content in a blog format.  Scripps argument for Food Network, which basically also applies to HGTV:

1. Food Network is among the most popular brands on television, consistently ranking among the Top 10 networks in cable and satellite. In fact, Food Network attracted record numbers of viewers in 2009.
2. Cablevision does not pay Food Network comparably to what it pays other Top 10 networks; yet it pays some networks that deliver substantially smaller audiences significantly more for their programming.
3. The rates currently paid to Food Network by Cablevision are among the lowest in the industry. In 2009, Food Network is 75^th of the 79 Nielsen-rated cable and satellite networks in terms of average rates received from distributors per subscriber. (Source: Kagan Research)
4. Cable subscribers on the whole, responding to the 2009 Beta Subscriber Study, said Food Network is worth $1.03 per month, which is considerably more than Cablevision is paying for the network’s programming and more than Food Network is asking in the current contract negotiations.
5. Cablevision customers pay an average subscription rate of $83 per month. The monthly fee Cablevision pays for Food Network is a small fraction of that figure.

[flv width=”640″ height=”451″]http://www.phillipdampier.com/video/Scripps Ad for Cablevision Customers.flv[/flv]

Scripps fires back with its own ad alerting Cablevision subscribers to call and ask for HGTV and Food Network back on their lineup.

Judging from the comments left on both of Scripps’ sites, consumers know they are stuck in the middle and many are not thrilled with either party.  Some of the comments:

Each of you blames the other, but it’s probably a lot of both, and we, the viewers, are the real losers.  Thanks a lot to both Cablevision and Scripps. You’re just like the Republicans and Democrats — neither side seems to understand the meaning of or necessity for compromise to benefit the masses. Have a wonderful New Year.

You guys are schmucks. You waited until the very last minute, on New Years Eve, to tell everyone about this before launching your stupid campaign. You are using your customers to fight your battles, and are ultimately punishing all of them at the end of the day. And that’s pathetic.

YOU guys are the scumbags! You’re so greedy, I hope Cablevision snubs you. If Cablevision picks you back up at your hiked rate, we’ll be the ones paying an even higher bill, you idiots.
Thanks loads and happy new year to you, too. Greedy morons.

Whatever the disagreement is on funding, ultimately, it is us as the consumer who are paying the bill. My wife LIVES for the Food Network and would be willing to pay for it as a Premium channel. If that’s the road both sides want to take, both will lose out. Only a few like myself would be willing to pay extra for it……there will be other subscribers that could care less either way.

I turned on my TV this morning to watch the Rose Parade at 11 am and found an obnoxious rotating statement from Cablevision instead of the channel. I then went online to the web address they provided on screen and read their say -nothing statement that put the entire blame on Scripps networks. Instead of telling the customers there was a problem and asking what we would want to pay for these networks, they just yanked them. They are the most customer-unfriendly company I have seen, and it is not just from this action where I form this opinion.

We have enjoyed the FoodNetwork and HGTV but you deserve to be off Cablevision, there is no way your combined networks are worth almost $2 a month, 25 cents is about right. My cable bill is too high now, 2 bucks for what you have? Forget it, I will have to do it the old fashion way. We lived without you before and will live without you again.

To Cablevision, I have had my rates raised countless times over the past 10 years, and have nothing to show but more CRAP channels. I can’t watch NFL channel, I don’t get my hard to find football games because I am a fan of an out of area team, and now, I can’t watch the ONE CHANNEL that I regularly follow, FOOD Network. The fact that companies like you have spurned the “a-la-carte” system that would allow me to choose and pay for the channels I want (which I would gladly do for Food Network and HGTV) and instead want to keep your profit margin as large as possible is a testament to the corporate GREED that you embrace instead of a value based system. You can talk tough and try to put all of the blame on Scripps, but the truth is, you are both to blame.

Somehow, I don’t think this was the kind of reaction either company expected from customers who have wised up to who will ultimately pay to resolve this in the end.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Vern Yip HGTV Cablevision.flv[/flv]

HGTV’s Vern Yip speaks to Cablevision customers about how to get HGTV back on their cable lineup.  (30 seconds)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Guy Fieri on Food Network Being Dropped.flv[/flv]

Food Network’s Guy Fieri is “blown away” with Cablevision’s decision to drop Food Network from the lineup. (30 seconds)

The tradition some have of firing off weapons at the stoke of midnight on New Year’s Day managed to go awry when a stray bullet severed a Comcast fiber optic cable serving 300 subscribers with cable and broadband service in southwest Albuquerque.  Service was out for approximately 12 hours while the cable was repaired.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KRQE Albuquerque Bullet cuts cable services for 300 1-1-10.flv[/flv]

KRQE-TV Albuquerque reports on the impact of stray bullets on your Comcast broadband service.  (1 minute)

Time Warner Cable and Fox are now into their final day of negotiations before the agreement expires governing Fox-owned affiliate stations and cable networks.

One thing that the dispute has accomplished is increasing media attention on both companies and a spotlight on the business models of television programming and distribution.  It used to be so simple – television programming would air on broadcast television, enjoy massive audiences and the lucrative ad revenue that comes from having top-rated programming.  Cable networks couldn’t survive on the much smaller ad revenue they earn from their smaller audiences, so they charged cable operators a small fee for every subscriber who could watch their channels.

With the advent of TiVo and other digital video recorders, online viewing, and the audience erosion that comes from both, what worked for more than 50 years didn’t work so well anymore.  Time-shifting viewers no longer felt committed to watching live television, satisfied with being able to watch when they want and fast forward past the increasing amount of advertising television stations crammed into programming.  With broadband, viewers could download or stream their favorite programs online, often for free and with limited (if any) commercials.  Cable networks that used to be content running older syndicated programming, movies, and low budget documentaries and specials began creating their own original programming, often just as good as anything the networks produced.  Subscription fees charged programmers increased accordingly to help finance these shows.

Today, some cable networks are coming close to rivaling the viewership of broadcast networks’ lesser-watched programming.  If the economic downturn didn’t challenge the advertising industry, the ongoing loss of network television viewers would have accomplished the same thing – lower ad rates for ABC, CBS, NBC, and Fox.

At the heart of the debate is a new discussion about whether “free over the air television” is a sustainable business model.  Networks like Fox evidently don’t think so, which is why they seek payment from the pay television industry, be it cable, FiOS, U-verse, or satellite.  Since the majority of Americans now watch television through one of these services or through their broadband connection, there is plenty to be made from such payments.  Of course, those costs are passed on to you.

The result?  You are now paying for “free television.”

The hardball game between Fox and Time Warner Cable will be replayed often between the other networks and programmers and pay television companies.

Today’s video reports include another update from the business side of the story, several additional reports from impacted Fox stations, and basic education about what television antennas are all about.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Bloomberg Reporter Stelter on News Corp Time Warner Cable Talks 12-31-09.flv[/flv]

New York Times reporter Brian Stelter reports the two parties remain “pretty far apart” from an agreement in this report from Bloomberg News. (2 minutes)

[flv]http://www.phillipdampier.com/video/CNBC Time Warner Fox Dispute 12-31-09.flv[/flv]

CNBC discusses the business side of the Time Warner Cable-Fox dispute, and now Sen. John Kerry (D-Mass.) has put himself in the middle of the dispute as well. (1 minute)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/KXAN Austin Cable dispute could turn off bowl games 12-31-09.flv[/flv]

In Austin, KXAN-TV reports Time Warner Cable has been telling Texas viewers they can watch most of the Fox Network programming on Hulu for free.  Some Austin residents are sick of hearing about the dispute and are abandoning Time Warner Cable for DirecTV.  “Football is everything in Texas,” say some who are watching the dispute with concern. (3 minutes)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/KDFW Dallas Watch FOX 4 without Time Warner 12-31-09.flv[/flv]

Some local Fox stations are teaching their viewers how to receive their stations if Time Warner Cable no longer carries them on their lineup.  KDFW-TV in Dallas went to Best Buy where they’re only too happy to sell antennas and digital converter boxes to Metroplex residents. (2 minutes)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WOFL Orlando Fox Orlando Affiliate Teaches Viewers About Antennas 12-30-09.flv[/flv]

WOFL-TV in Orlando spent part of the newscast teaching people what a TV antenna is.  For many under 30, television viewing has always been through cable or satellite, never over-the-air, so the concept of rabbit ears is a new one for some. (1 minute)

Lots more to watch below the page break.  Click the link below to continue!

… Continue Reading

A creative attempt by two Floridians to keep local Fox affiliates from being dropped on Bright House Networks by asking a judge for a temporary restraining order failed late Wednesday when the judge effectively tossed the case on jurisdictional grounds.

Circuit Judge Maura Smith in Orlando initially said she was referring the matter to federal court to determine which court had jurisdiction to issue a temporary restraining order.

“I wish I could make everybody happy,” said the Orange County Circuit Judge.

Orlando attorney John Morgan requested the court order Fox to keep WOFL-TV, Orlando’s Fox affiliate, on the Bright House Networks cable lineup, at least until after the Sugar Bowl.  Morgan filed the case on behalf of two local sports fans Thomas Moore, a fellow attorney and Richard Anderson, the city manager for Apopka, outside of Orlando.

Fox’s own counsel requested Smith send the case to federal court instead, and she agreed.  Later Wednesday, U.S. District Court Judge Gregory Presnell sent the case back to circuit court, where it was effectively tossed out.

The legal arguments were hardly a Perry Mason moment.  Morgan argued football fans would be harmed if the game wasn’t televised on Bright House Networks.  Fox’s attorney argued they could watch with an antenna or drive to a local bar or restaurant televising the game.  That brought a response from Morgan questioning where exactly someone would purchase rabbit ears, and that driving to a local establishment to watch the games could be risky because of increased drunk driving on New Year’s Day.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/WESH Orlando Judge Denies Motion In Bright House Fox Dispute 12-31-09.flv[/flv]

WESH-TV in Orlando reports the judge tossed the case because it would have required her to rule over a private business matter.  (2 minutes)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WOFL Orlando Lawsuits Against Bright House and Fox 12-30-09.flv[/flv]

WOFL-TV in Orlando interviews the plaintiffs outside of court today about their case and goes over the dispute one more time with central Florida viewers. (5 minutes)