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The Weather Channel Is Off DirecTV Over a $0.01 Rate Dispute

Phillip Dampier January 14, 2014 Competition, Consumer News, DirecTV, Video 4 Comments

weather channelThe Weather Channel has been removed from DirecTV’s lineup and replaced with WeatherNation, a much-smaller channel based in St. Paul, Minn., because the popular weather network reportedly sought a $0.01 monthly rate increase.

DirecTV subscribers told Stop the Cap! the channel change happened just after midnight, although WeatherNation was already a part of DirecTV’s lineup.

“This is unprecedented for the Weather Channel,” said David Kenny, CEO of the Weather Channel’s parent company. “In our 32 years, we have never had a significant disruption due to a failure to reach a carriage agreement.”

directvThe Weather Channel has launched a campaign to restore the network that carries the impression DirecTV does not care about the safety of their customers. The Weather Channel executives have stated their severe weather coverage is unparalleled and would leave satellite dish customers in rural areas without important information about dangerous weather.

But Dan York, responsible for DirecTV content, said weather information is available from a variety of sources, especially smartphones, and The Weather Channel has drifted away from its core weather mission, devoting up to 40 percent of its programming to reality TV shows.

bring back weather

The two sides are far apart, even arguing over the amount of the increase The Weather Channel wants for its programming. Executives at The Weather Channel claim their requested increase amounts to $0.01 per month, per subscriber, on top of the $0.13 average cost distributors pay for the weather network. DirecTV says it is substantially more than that and it seeking a 20% rate cut due to declining ratings.

The Weather Channel lacks the clout major corporate conglomerates like NBC Universal, Time Warner Entertainment, or Viacom have when negotiating contract renewals. Instead, it is counting on its loyal audience to bring the fight to the satellite provider.

So far, viewers seem to be responding. An anti-DirecTV website run by The Weather Channel has received more than 700,000 page views and reportedly brought 150,000 complaint calls to DirecTV customer service.

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The Wall Street Journal reports the advent of smartphones has taken a significant toll on The Weather Channel’s viewership, leading DirecTV to ask for a 20% rate cut. (4:17)

Staking the Heart of the Power-Sucking Vampire Cable Box

vampire-power-1-10964134Two years after energy conservation groups revealed many television set-top boxes use almost as much electricity as a typical refrigerator, a voluntary agreement has been reached to cut the energy use of the devices 10-45 percent by 2017.

The Department of Energy, the Natural Resources Defense Council, the American Council for an Energy-Efficient Economy, the Appliance Standards Awareness Project, the Consumer Electronics Association, and the National Cable & Telecommunications Association agreed to new energy efficiency standards for cable boxes expected to save more than $1 billion in electricity annually, once the new equipment is widely deployed in American homes. That represents enough energy to power 700,000 homes and cut five million tons of CO2 emissions each year.

“These energy efficiency standards reflect a collaborative approach among the Energy Department, the pay-TV industry and energy efficiency groups – building on more than three decades of common-sense efficiency standards that are saving American families and businesses hundreds of billions of dollars,” said Energy Secretary Ernest Moniz. “The set-top box efficiency standards will save families money by saving energy, while delivering high quality appliances for consumers that keep pace with technological innovation.”

DVR boxes are the biggest culprits. American DVRs typically use up to 50W regardless of whether someone is watching the TV or not. Most contain hard drives that are either powered on continuously or are shifted into an idle state that does more to protect the life of the drive than cut a consumer’s energy bill. A combination of a DVR and an extra HD set-top box together consume more electricity than an ENERGY STAR-qualified refrigerator-freezer, even when using the remote control to switch the boxes off.

NRDC Set-Top Boxes  Other Appliances-thumb-500x548-3135

Manufacturers were never pressed to produce more energy-efficient equipment by the cable and satellite television industry. Current generation boxes often require lengthy start-up cycles to configure channel lineups, load channel listings, receive authorization data and update software. As a result, any overnight power-down would inconvenience customers the following morning — waiting up to five or more minutes to begin watching television as equipment was switched back on. As a compromise, many cable operators instruct their DVR boxes to power down internal hard drives when not recording or playing back programming, minimizing subscriber inconvenience, but also the possible power savings.

In Europe, many set-top boxes are configured with three levels of power consumption — 22.5W while in use, 13.2W while in standby, and 0.65W when in “Deep Sleep” mode. More data is stored in non-volatile memory within the box, meaning channel data, program listings, and authorization information need not be re-downloaded each time the box is powered on, resulting in much faster recovery from power-saving modes.

The new agreement, which runs through 2017, covers all types of set-top boxes from pay-TV providers, including cable, satellite and telephone companies. The agreement also requires the pay-TV industry to publicly report model-specific set-top box energy use and requires an annual audit of service providers by an independent auditor to make sure boxes are performing at the efficiency levels specified in the agreement. The Energy Department also retains its authority to test set-top boxes under the ENERGY STAR verification program, which provides another verification tool to measure the efficiency of set-top boxes.

Comcast, DirecTV, DISH Network, Time Warner Cable, AT&T, Verizon, Cox Communications, Charter Communications, Cablevision, Bright House Networks and CenturyLink will begin deploying new energy-efficient equipment during service calls. Some customers may be able to eventually swap equipment earlier, depending on the company.

[flv]http://www.phillipdampier.com/video/WCCO Minneapolis Check Your Cable Box 6-27-11.mp4[/flv]

WCCO in Minneapolis reported in 2011 cable operators like Comcast may make subscribers wait 30 minutes or more for set-top box features to become fully available for use after plugging the box in. (1:50)

Telecom Providers Abuse Colorado Flood Victims, Ignore Their Own Disaster Policies

floodAs residents across flood-stricken Colorado begin the task of cleaning up damaged homes and in some cases rebuilding them on now-empty lots, many have navigate to these guys and made calls to various utilities, trash collectors, and service providers to hold off on further bills for services they cannot use. The electric, telephone, and trash hauling companies were all understanding and reassuring. DirecTV and AT&T were not. They want their money — one for the value of satellite equipment that may have since floated into New Mexico or Kansas, the other for fees incurred from excessive texting, talking, or data usage.

DirecTV was willing to settle with Jenny, a resident living outside of Boulder whose first floor was inundated with waves of water which swept her personal property out the rear door, if she was willing to charge $400 on her Visa credit card today for one lost satellite dish and two receivers. Otherwise, “collection activity will begin that could harm your credit.”

Jamestown resident Juliette Leon Bartsch is contending with 10 feet of mud, her husband’s car smashed against the house, and AT&T’s nagging fees for excessive texting.

That will be $400 please. Call your insurance company. We want to get paid.

That will be $400 please. Call your insurance company. We want to get paid.

Bartsch says AT&T has been pounding her phone with text messages telling her she will be paying AT&T’s regular prices of 20 cents per text, 30 cents for any text with attached photos, because she exceeded her allowance sending and receiving updates about the status of her home to worried friends and family. Her idea was to keep the phone lines clear for emergency personnel contending with serious telecom outages. AT&T’s idea was to rake in 20 cents for a short message that costs them virtually nothing to handle. Sending text messages is the preferred method of communicating in a disaster area over a wireless network and it turns out to be mighty profitable for AT&T as well.

Bartsch told the Denver Post AT&T store employees were “completely unhelpful” to her plight. AT&T also never misses an opportunity to upsell a traumatized customer to a more profitable service plan, even when that customer is a disaster victim.

After waiting around for 30 minutes, an AT&T employee rudely grabbed her phone in what Bartsch interpreted as a demand to “prove” her claims of disaster-related texting. After scrolling through the messages, all the employee was willing to offer was a paid upgrade to a more expensive texting plan to cover current and future text messages.

After contacted by the newspaper, AT&T changed its tune.

“As is our routine in an emergency, we began suspending collections calls to impacted customers last Friday, and we will not be billing those customers for flood-related overages to their wireless-minute or text-message plans,” a company spokeswoman said in a statement. “AT&T has reached out to our customers to clear the flood overage charges, and we apologize for the oversight and inconvenience.”

Bartsch has not heard back from AT&T to find out if her bill will be, in fact, credited for the charges.

DirecTV has a less opaque policy for disaster victims published on its website. Getting the company to follow it is another matter.

Does DIRECTV provide aid for customers impacted by natural disasters?

DIRECTV has policies in place to assist customers who are impacted by natural disasters. If you live in a declared disaster area, we’ll work with you to find a solution that best fits your needs. Options available include:

  • Account cancellation – If service cannot be restored at your home due to the damage from a natural disaster, we will cancel your account, and waive any fees associated with the inability to return equipment, along with any remaining agreement on the account.
  • Account suspension – If you are without power for an extended period, we will suspend your account until power and services can be restored.
  • No-cost service calls – If service can be restored at your home, we will send a technician at no cost to ensure the dish is properly aligned and to fix any technical issues.
  • Equipment – If your equipment was damaged by a natural disaster, we will waive equipment replacement costs if you continue your DIRECTV service.

If you are a customer that has been affected, please contact 1-800-531-5000 so we can remedy your situation immediately.

You are over your texting limit.

You are over your texting limit.

Jenny, a Stop the Cap! reader, heard a completely different story from DirecTV.

“They were adamant, they really wanted to get paid either by me or the insurance company,” Jenny writes. “They even wanted to know the name of my carrier and my insurance policy number, which I refused to give them.”

This isn’t the first time DirecTV has ignored its disaster policy in Colorado. During this summer’s wildfires, fire victims were treated to similar demands for compensation.

Jeremy Beach’s Black Forest home burned to the ground and melted his satellite dish and reduced his DirecTV receivers to charred boxes. Then came DirecTV’s demand for cash.

“I couldn’t believe it,” he told the newspaper. “I had lost everything and they acted like they could care less.”

Even more incredible, a DirecTV spokesperson told the newspaper it was ignoring its disaster assistance policy because “most people’s insurance would cover the cost of its equipment.”

That is the same response Beach received. He hung up on the representative making the demand for payment.

Ask DirecTV for Pricing Information, They Quietly Run a Score-Dinging Credit Check on You

Phillip Dampier August 27, 2013 AT&T, Comcast/Xfinity, Competition, Consumer News, DirecTV, Verizon 2 Comments
MYOB

MYOB

Asking about the cost of DirecTV could turn out more expensive than you think.

The Los Angeles Times found DirecTV a little more nosy than it should be, opening the door to identity theft and some minor credit damage from unwanted credit inquiries from the satellite provider.

As customers in southern California grow weary over Time Warner Cable’s dispute with CBS, some are shopping around for a better deal with another provider.

57-year old Los Angeles resident Michael Bell got more than he bargained for when he called DirecTV looking for some price quotes. Before the representative would answer, Bell found himself grilled for a lot of personal details that seemed irrelevant in response to a question about the price of HBO.

In addition to name, address, and type of residence, DirecTV wanted to know if Bell owned or rented his home.

“That stopped me,” Bell told the LA Times. “Why should he care? I told him I just wanted a price quote. He said we’d get to that. And then he asked for my Social Security number.”

That was T.M.I. for Bell’s tastes and he quickly hung up.

Requesting a Social Security number these days is a red flag, often giving warning the person asking is about to run a credit check on you.

credit dropSure enough, Robert Mercer, a DirecTV spokesman, explained the satellite provider pulls a credit report on every potential customer to determine their financial viability. DirecTV doesn’t want deadbeat customers, not after spending close to $900 to install satellite television in the average home.

If you don’t like it, you can pay DirecTV a $300 deposit and keep the number to yourself. The money is gradually refunded in the form of $5 monthly service credits each month you maintain service.

Cable companies are also notorious for running credit checks on customers, which can appear to other creditors as a request to extend credit. Too many credit inquiries can temporarily cut your credit score or worse, deny you credit.

AT&T and Verizon are also sticklers for good credit so expect them to run credit checks as well.

Time Warner Cable stands out among others for at least taking an interest in protecting customer privacy and preventing possible identity theft.

Dennis Johnson, a company spokesman, told the newspaper it can run a preliminary credit check with only the last four digits of a Social Security number and your date of birth.

Consumer privacy advocates argue that in the age of identity theft, nobody should be providing a Social Security number to anyone without a clear understanding it is being used to establish credit, open an account, or get earned retirement benefits. Consumers asked for a Social Security number for any other purpose should ask if they can avoid providing it or at least carefully scrutinize the request. If uncomfortable, simply end the conversation.

DirecTV, Time Warner Cable Moving in On Hulu; Online Video Rights & Internet Cable TV

Phillip Dampier July 9, 2013 AT&T, Competition, DirecTV, Online Video, Video 2 Comments

twc logoTime Warner Cable won’t engage in an expensive bidding war for ownership of Hulu so it is trying to convince the online video venture’s current owners not to sell.

Sources tell Bloomberg News the cable company has offered to buy a minority stake in the online video streaming service alongside its current owners, which include Comcast-NBC, Fox Broadcasting, and Walt Disney-ABC.

If Hulu accepted the offer, the other bidders’ offers may not even be entertained.

Among those filing binding bids/proposals with Hulu as of the July 5 deadline:

  • DirecTV, which reportedly wants to convert Hulu into an online companion to its satellite dish service for the benefit of its satellite subscribers;
  • AT&T and investment firm Chernin Group, which submitted a  joint bid, presumably to beef up online video options for U-verse customers.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg Plot Thickens in Bidding War for Hulu 7-9-13.flv[/flv]

Bloomberg News discusses how the various bidders for Hulu would adapt the service for their own purposes. It’s all about bulking up online video offerings.  (4 minutes)

huluTM_355Hulu’s new owners could continue to offer the service much the same way it is provided today, with a free and pay version. But most expect the new owners will throw up a programming “pay wall,” requiring users to authenticate themselves as a pay television customer before they can watch Hulu programming. If Time Warner Cable acquired a minority interest and the current owners stayed in place, Time Warner Cable TV customers could benefit from free access to certain premium Hulu content, now sold to others for $8 a month. That premium content would presumably be available to U-verse customers if AT&T emerges the top bidder, or DirecTV could offer Hulu to satellite subscribers to better compete with cable companies’ on-demand offerings.

Hulu’s influence will be shifted away from broadcast networks and more towards pay television platforms regardless of who wins the bidding. That could end up harming the major television networks that provide Hulu’s most popular content. Many of Hulu’s viewers are cord-cutters who do not subscribe to cable or satellite television. Placing Hulu’s programming off-limits to non-paying customers could force a return to pirating shows from peer-to-peer networks or third-party, unauthorized website viewing.

Online video rights are so important to cable operators and upstarts like Intel, which wants to launch its own online cable-TV like service, providers are willing to pay a premium for streaming rights.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg Why Hulu Is Attracting Billion Dollar Bids 7-8-13.flv[/flv]

Richard Greenfield, analyst at BTIG, and Scott Galloway, chairman and founder of Firebrand Partners, discuss Hulu and the ability to stream on multiple platforms. They speak on Bloomberg Television’s “Bloomberg Surveillance.” (4 minutes)

directvThe Los Angeles Times reports that pay TV distributors are in a rush to make deals, not only to offer more viewing options for customers, but to potentially get rid of expensive and cumbersome set-top boxes.

Interlopers like Intel, Apple, and Google who want to break into the business have not had an easy time dealing with programmers afraid of alienating their biggest customers. Even DirecTV, which has done business with some of the largest cable networks in the country for well over a decade still meets some resistance.

Acquiring Hulu could be an important part of DirecTV’s strategy to develop the types of services satellite TV has yet to manage well. On-demand programming is no easy task for satellite providers. But if DirecTV acquired Hulu, satellite customers could find DirecTV-branded on-demand viewing through the Internet. The Times speculates DirecTV could even build an online subscription service for subscribers who don’t want a satellite dish, receiving the same lineup of programming satellite customers now watch.

Distributors that acquire enough online streaming rights could even launch virtual cable systems in other companies’ territories, potentially pitting Comcast against Time Warner Cable, but few expect cable operators to compete against each other.

The Government Accountability Office warned head-on competition between cable operators was an unlikely prospect, especially because those cable operators also own the broadband delivery pipes used to deliver programming.

“[Cable companies] may have an incentive to charge for bandwidth in such a way as to raise the costs to consumers for using [online video] services.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg Hulu Buyers Haggle as Final Deadline Looms 7-5-13.flv[/flv]

Bloomberg News explains why Hulu is worth a billion dollars in a changing world of television. (3 minutes)

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