Jeff Kagan is a name familiar to anyone that follows the cable industry. For over 30 years, Kagan has been tracking consumer perceptions about the telecom industry and offering insight into the challenges these and other businesses were likely to face in the future. More recently, Kagan has been fretting about the growing trend of retail businesses paying more attention to cultivating their relationships with Wall Street while targeting their customers for abuse.

“I have been noticing how in recent years, retail is becoming increasingly unfriendly to the customer. This is a mistake,” Kagan offers in a new opinion piece on Equities.com. “New technologies and new ideas may be good for the bottom line in the short-term. They may solve problems like shoplifting, and that may make investors happy today. However, in the long-term, these customer unfriendly trends will take their toll as customers will shop where they feel appreciated, respected and wanted. Customers shop at stores they love. Love is an emotion. So, we must think of winning the customer with emotion. This is difficult for most businesspeople to understand.”

‘My way or the highway’-type attitudes from retailers come from all sorts of businesses. Warehouse clubs make you pay for the honor of shopping there. This is by far the best warehouse, with a good structure and flooring from warehouse-flooring.uk. And if it happened that you encountered concrete floor damage, don’t hesitate to call the concrete repair professionals from a site like https://concrete-repair.uk for help. Chains like Walmart are beefing up security teams, and in some places, they now demand to see receipts from customers exiting the store. But nobody has abused customers better and longer than the telecom industry. Not even the cattle-car-like airlines.

Kagan

After literally decades of almost bragging about their “don’t care” customer service while throwing attitude and intransigence at customers unhappy with service or pricing, the nation’s biggest cable and phone companies are now experiencing long-overdue customer revenge. Kagan notes that cord-cutting is not just about switching to a competitor for service. Many customers are literally thrilled to see the back end of their long hated provider.

Decades of monopoly service made abusing customers a risk-free and very profitable strategy for companies like Comcast, AT&T, Charter, Cox, Mediacom, and Verizon. In fact, someone turned the concept of the “cable guy” into a horror movie. Did you stay home from work to wait for a service call that never materialized? Tough luck. Don’t like yet another rate increase? Too bad.

“The reason they did this was, they had no competition in their market area. That meant the customer could not leave them,” Kagan noted.

After years of getting a bad reputation, only two things threatened to scare telecom companies straight — the fear of imminent regulation, such as what happened in 1992 when reregulation of cable companies turned out to be the only bill that year to be vetoed by President George H. W. Bush and overridden by the U.S. Senate to become law.

The other, much more scary fear is competition. In the mid-1990s, the nation’s biggest phone companies including what we now know as AT&T and Verizon were contemplating getting into the video business. This proved far more threatening than the much smaller home satellite dish business, which attracted around three million Americans at the time. The cable industry spent years taking shots at satellite competitors, including sticking dishowners with the cost of buying a $300 descrambler box up front, and charging as much (or even more) for programming than cable customers paid, despite the fact homeowners had to purchase and service their own dish, often 6-12 feet wide and not cheap to install.

The cable industry feared phone companies would charge ratepayers to subsidize their entry into the television business and sought protective legislation prohibiting the same cross-subsidization the cable industry would later rely on to introduce broadband and phone service.

More recently, after the country reached “peak cable” — the year the highest number of us subscribed to cable TV, the industry recognized it was likely all downhill from there. Comcast, in particular, specialized in empty lip service gestures to improve the customer service experience. For years, it promised to do better, only to do worse. The company even attempted to shed its bad reputation by changing the brand of its products from Comcast to “XFINITY.” Customers were not fooled, but that did not stop Charter from following Comcast’s lead, introducing the “Spectrum” brand to its products and almost burying its corporate name, which it barely references these days.

Kagan notes not following through on the customer service experience made cable companies ripe for stunning customer losses as new competitors for video service emerged. Comcast and Charter are among the biggest losers of cable TV customers, but their bad attitudes persist. Their latest ideas? Keep raising prices, rely on tricky Broadcast TV surcharges that are soaring in cost, end customer retention offers for dissatisfied video customers, and make up the difference in lost revenue by jacking up the price of broadband service, which is already nearly all-profit.

“The bottom line for any business is always focus on the customer. If they are happy, your business will remain strong and growing,” Kagan warned.

At some point, customers will get more choices for broadband service. Community owned broadband solutions have been very successful in communities that have experienced the worst abuse AT&T, Comcast, and Charter can deliver. In the future, fixed 5G wireless may provide perfectly respectable internet service if it is not data capped. Next generation satellite providers, interloping independent fiber to the home providers, and mesh wireless providers may offer consumers a number of options that can deliver suitable service and perhaps finally put cable and phone companies in their place.

Comcast is planning to debut its new streaming TV platform under the NBC “Peacock” brand next April with a lineup of original shows starring well-known talent including Alec Baldwin, Demi Moore, Christian Slater, and Ed Helms.

Peacock will most closely resemble the advertiser-supported Hulu platform, with 21 million Comcast cable television customers getting access for free. Comcast is reportedly also negotiating with other cable, satellite, and telco TV providers about bundling free basic Peacock subscriptions for their cable TV customers as well. Those who never subscribed to cable TV or cut the cord will be offered the option of a lower cost, commercial-filled subscription or a more expensive ad-free option, presumably at prices similar to what Hulu charges ($5.99-11.99).

Peacock’s subscription model is designed to protect Comcast’s cable TV revenue. For existing Comcast cable TV customers, giving ad-supported subscriptions away for free may add to the value proposition of keeping a cable TV subscription. By charging subscription fees to everyone else, Comcast is not ‘giving away the store for free.’ If it did, it could upset other pay television companies that are facing ever-rising retransmission consent fees and programming costs for Comcast/NBC-owned TV stations and cable networks including CNBC, MSNBC, and the USA Network.

Comcast is confident its long experience offering streaming TV Everywhere services including live streaming and on demand programming will mean it will not face the kinds of scaling mistakes other streaming services have had. Bonnie Hammer, the NBCUniversal executive appointed to run Peacock, believes the service’s deep content catalog, starting with 15,000 hours of NBC and Universal Studios TV shows and movies complimented with other acquired and original productions will give viewers plenty to watch.

“I’m not sure anybody else out there can do what we can do,” Hammer told the Wall Street Journal. “We expect to have great content and a great product [that] is really easy to use.”

In addition to scripted content, Peacock will also feature live and recorded news and sports programming from NBC.

Among the shows featured on the Peacock platform:

Original Drama Series

ANGELYNE (limited series)
Limited series based on The Hollywood Reporter feature that explored the identity of L.A.’s mysterious billboard bombshell.

BATTLESTAR GALACTICA
Battlestar Galactica reboot.

BRAVE NEW WORLD
Based on Aldous Huxley’s 1932 novel, Brave New World. The series envisions life in a utopian society that bans monogamy, privacy, money, and never discusses history.

DR. DEATH
Inspired by a podcast by the same name. Dr. Death follows the true story of Dr. Christopher Duntsch (played by Jamie Dornan), a rising star in the Dallas medical community who also emerges as a deadly sociopath. Duntsch’s successful neurosurgery practice gradually deteriorates into a horror show of permanently disabled or dead patients. Two fellow doctors, played by Alec Baldwin and Christian Slater, fight an entrenched medical bureaucracy designed to protect money-making doctors to get his practice shut down.

ONE OF US IS LYING (pilot)
Based on the novel One of Us Is Lying, the crime series follows the unfolding of events after five people spend an afternoon in detention, but only four leave alive.

UNTITLED REAL HOUSEWIVES SPINOFF (no details provided)

Original Comedy Series

A.P. BIO (Season 3)
Picks up where the original NBC TV series left off. When disgraced Harvard philosophy professor Jack Griffin (Glenn Howerton) loses out on his dream job to his rival Miles Leonard (Tom Bennett), he is forced to return to the small town Toledo, Ohio and work as an advanced placement biology teacher at the fictional Whitlock High School. Jack makes it clear to his class that he will not be teaching any biology. Realising he has a room full of honor-roll students at his disposal, Jack decides to use them for his own benefit: getting revenge on Miles. Eager to prove that he is still king of the castle, Principal Durbin (Patton Oswalt) struggles to keep Griffin under control.

PUNKY BREWSTER (pilot)
This continues of the iconic 80s sitcom about a bright young girl raised by a foster dad features Punky as a now single mother of three trying to get her life back on track when she meets a young girl who reminds her a lot of her younger self.

RUTHERFORD FALLS
A small town in upstate New York is turned upside down when local legend and town namesake, Nathan Rutherford (Ed Helms) fights the moving of a historical statue.

SAVED BY THE BELL (reboot)
When California governor Zack Morris gets into hot water for closing too many low-income high schools, he proposes they send the affected students to the highest performing schools in the state – including Bayside High. The influx of new students gives the over-privileged Bayside kids a reality check.

STRAIGHT TALK
Straight Talk examines what happens when two opposing ideologies are forced into an odd coupling. The main characters will be challenged by one another, making the moral lines at which they once stood harder to define.

Original Unscripted Shows 

THE AMBER RUFFIN SHOW
A weekly show featuring Amber’s “signature smart-and-silly take on the week.” The show will de-emphasize talking with guests and spend more time on comedy routines.

WHO WROTE THAT
A docuseries designed to showcase Saturday Night Live’s comedy writers.

Original Made-for-Peacock TV Movie

PSYCH 2: LASSIE COME HOME
Based on the USA Network show Psych, Santa Barbara Police Chief Carlton Lassiter is ambushed on the job and left for dead. In a vintage Psych-style Hitchcockian nod, he begins to see impossible happenings around his recovery clinic. Shawn and Gus return to Lassie’s side in Santa Barbara and are forced to navigate the personal, the professional, and possibly the supernatural. Separated from their new lives in San Francisco, our heroes find themselves unwelcome in their old stomping grounds as they secretly untangle a twisted case without the benefit of the police, their loved ones, or the quality sourdough bakeries of the Bay Area. What they uncover will change the course of their relationships forever.

Legacy Shows in the Peacock Catalog

Bates Motel
Brooklyn Nine-Nine
Cheers
Chrisley Knows Best
Covert Affairs
Downton Abbey
Everybody Loves Raymond
Frasier
Friday Night Lights
House
Keeping Up with the Kardashians
The King of Queens
Married … with Children
Monk
Parks and Recreation (exclusive, available Oct. 2020)
Parenthood
The Office (exclusive, available Jan. 2021)
Psych
The Real Housewives
Royal Pains
Saturday Night Live
Superstore
30 Rock
Top Chef
Will & Grace
100 Dias Para Volver (Spanish-language)
Betty in NY (Spanish-language)
El Barón (Spanish-language)
Preso No. 1 (Spanish-language)

Peacock’s Legacy Movies Catalog

American Pie
Back to the Future
A Beautiful Mind
Bourne franchise
The Breakfast Club
Bridesmaids
Brokeback Mountain
Casino
Dallas Buyers Club
Despicable Me franchise
Do the Right Thing
Erin Brockovich
E.T. The Extra Terrestrial
Fast & Furious
Field of Dreams
Jaws
Knocked Up
Mamma Mia!
Meet the Fockers
Meet the Parents
Shrek

No customer service for you.

“The number you have dialed has been disconnected or is no longer in service. Please check the number and dial again.”

When Altice USA/Optimum customers discovered their TV and internet service stopped working Friday night in parts of New Jersey, New York and Connecticut, many called the customer service number printed on their monthly bill and discovered it was “disconnected or no longer in service.”

Outraged customers took to Twitter to express their displeasure.

“Since you shut off your Customer Service line, we all deserve a hefty credit to our accounts. ‘We’re always here to answer your questions.’ NO clearly you’re not, otherwise we’d be able to call you when there’s a sudden outage across multiple cities & no one knows why,” Nathalie Levey tweeted in frustration.

With the widespread outage affecting at least tens of thousands of customers across three states, some found other phone numbers to reach out to Optimum, but those lucky enough to get through were left languishing on hold “for hours,” according to the Connecticut Post. More than a few decided calling 911 was a better idea, much to the consternation of local police departments across the northeast that asked them to stop.

For some reason, Optimum phone service still worked for some, but not others. But it proved useless for reaching the cable company, with a recorded message asking callers to try again later. But calls placed from mobile phones or landlines still managed to get through, sometimes.

…when it works

It was an outage made to frustrate, in part because shortly after Altice acquired Optimum from Cablevision in 2016 as part of a $17.7 billion dollar acquisition, Altice promptly closed down Optimum’s call centers in Shelton and Stratford, Conn., employing nearly 600 workers.

An Altice spokesperson curtly described the outage as “power related” and left it at that, refusing to indicate if customers would be given a bill credit for the outage.

“We still don’t know, because you can’t reach these people on the phone at all and the people at the local cable store tell you that you have to call in, so they are also useless,” complained Sally Davis, an Optimum customer near Litchfield.

There may be another way to ask for a refund, but there is no proof it will actually result in a future bill credit:

The company maintains a general website where customers can request bill credits as noted by Hal Levy, chairman of a regional cable TV advisory council that keeps tabs on carriers and the quality of services they provide. The website on Monday directed customers to telephone, online chat and Twitter for follow-up on requests for bill credits.

“In past instances of widespread outages when the company was owned by Cablevison, automatic bill credits were issued to subscribers,” Levy wrote in an email to Hearst Connecticut Media.

The newspaper notes the outage hit just two weeks after Altice USA tacked $5 onto the rate for Connecticut customers who subscribe to its “Premier” TV package, raising the monthly charge to $110 on par with the rate for a “Gold” plan the company discontinued, while transitioning those subscribers to “Premier” status.

“Who are they kidding?,” Davis told Stop the Cap! “Optimum treats its customers to ‘PoS status.’ I wish we had FiOS.”

Charter Spectrum TV customers will pay at least $94 a month for cable television starting this October, thanks to a sweeping rate increase that will hike the cost of TV packages, internet service, equipment, and fees. Internet customers will soon face a base price for internet service of just under $70 a month.

Cord Cutters News quotes an anonymous source that claims the rate increases will begin in October, and will impact just about every plan except phone service.

The most striking increase is the Broadcast TV Fee, charged to recover the costs imposed by local TV channels. After increasing the price by $2 earlier this year to $11.99, Spectrum customers will now be required to pay $13.50 a month — almost $1.50 more. The Broadcast TV Fee alone will soon amount to $162 a year, just to watch TV stations you can receive over the air for free. Just a year ago, the average Spectrum customer paid a Broadcast TV Fee of $8.75 a month.

A Spectrum receiver is considered required by most customers, and starting this fall, it will cost $7.99 a month to lease one (up about $0.50 a month).

Cable TV packages are also getting more expensive:

• Spectrum TV Select: $72.49 a month (was $64.99 a month)
• Spectrum TV Silver: $92.49 (was $84.99)
• Spectrum TV Gold: $112.49 (was $104.99)

Internet customers will not escape Charter’s rate hikes either. The entry-level package — Spectrum Standard Internet (100 or 200 Mbps in some areas), will increase $4 a month to $69.99. If you use Spectrum’s equipment for Wi-Fi service, your price is increasing $5 a month to $75.99.

Although the rate increases are significant, they are not outlandish when compared with the regular internet-only prices charged by other cable providers:

• Comcast: 150 Mbps (a 1 TB cap applied in most areas) costs $80 plus $13 gateway rental fee = $93/mo
• Cox:  150 Mbps (a 1 TB cap applies in most areas) is priced at $84 a month plus $11 modem rental fee = $95/mo
• Mediacom: 100 Mbps (a 1 TB cap applies) costs $95 a month plus $11.50 modem rental fee = $106.50/mo

Note: Gateway/Modem Rental Fee can be waived if you purchase your own equipment. Prices are lower when bundling, and you may get a better deal threatening to cancel or agreeing to a term plan.

One Wall Street analyst, New Street’s Jonathan Chaplin, predicted in 2017 that the cable industry would use its market power to nearly double rates consumers paid just a few years ago, which for most would mean an internet bill of at least $100 a month.

“We have argued that broadband is underpriced, given that pricing has barely increased over the past decade while broadband utility has exploded,” the researcher said in 2017.

Customers should watch their September bills for Charter Spectrum’s official rate increase notification. Customers on promotional or retention plans are exempt from increases except the Broadcast TV Fee and equipment charges until their promotion expires.

Customers that bundle multiple services will pay slightly lower prices as a result of bundling discounts, but the overall price increase will still be noticeable to most customers.

Cord-cutting is likely to accelerate dramatically because of Spectrum’s TV rate hikes, as customers reassess the value of a basic cable television package that is nearing $100 a month.

WASHINGTON, Aug 1 (Reuters) – The U.S. Federal Communications Commission (FCC) last week voted 3-2 to tighten rules governing the franchise fees paid by cable companies to local authorities, a move that cities warn could result in public access channels going off the air or in municipalities losing free service.

Congress previously capped the franchise fees that cable operators pay for using public property, among other factors, at 5% of gross revenue on cable bills. The FCC vote requires non-financial “in kind” contributions made by cable operators must be assigned a value and counted against the cap.

Those costs that now must be counted against the cap include contributions for public, educational, and government access channels, institutional networks and other services like free cable for municipal buildings.

FCC Chairman Ajit Pai said “every dollar paid in excessive fees is a dollar that by definition cannot and will not be invested in upgrading and expanding networks.”

Cable operators pay roughly $3 billion annually in franchise fees to state and local governments.

New York told the FCC all city fire stations get free cable and internet service from cable providers.

“There are no viable alternative services available to the city. The only potential long-term solution would be to build a parallel network which will take years and cost a massive amount of money,” the city said in a July 25 letter.

Pai

The FCC also voted Thursday to bar municipalities from regulating or imposing fees on most non-cable services, including broadband Internet service.

NCTA – the Internet & Television Association representing major cable companies like Comcast Corp, Charter Communications Inc and Cox Communications Inc – said the vote “will help promote broadband investment, deployment, and innovation, to the benefit of all Americans.”

FCC Commissioner Geoffrey Starks said “free or discounted service to cash-strapped schools, provision of critical (institutional network service), discounts to vulnerable communities … are a small imposition given the value received by providers.”

Republicans commissioners point out that cable companies have been forced to fund other events like ice cream socials or offer free service for government-owned golf courses.

Local communities including Atlanta, Boston, Dallas and Los Angeles told the FCC in a joint statement local governments will “be forced to make difficult decisions about reductions in service (i.e., coverage of governmental meetings, community media, and broadband to schools) or increases in local revenue sources.”

Reporting by David Shepardson; Editing by Bernadette Baum