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A Washington Post Columnist Channels Cable Industry Drivel About Cord-Cutting

Phillip Dampier April 18, 2018 Editorial & Site News, Online Video 2 Comments

The editorial and opinion page of The Washington Post has always been an uneven experience, especially when it comes to their views on the telecommunications business.

For years, the Post’s editorial page has been suspiciously cable-friendly. It favored Comcast’s failed 2014 acquisition of Time Warner Cable — a thought so horrible, readers were likely to spit out their morning coffee after seeing it. At first, one might have attributed the editorial board’s friendliness to the fact its corporate parent at the time also owned Cable One, a cable operator serving small and medium cities in places Comcast, Charter, and Cox forgot. But Cable One is now long gone — spun off as an independent entity. So perhaps laziness explains why reporters and columnists are frequently suckered by well-worn talking points from a cable industry on the defensive — celebrating every article proclaiming the impact of cord-cutting is muted, at best.

This morning’s shallow column by “right-leaning blogger” Megan McArdle, “You think you hate your cable bundle. You’re wrong,” is an excellent case in point. It’s a combination of cable industry folderol and misunderstanding of the economics of today’s cable business.

McArdle argues that recent subscriber growth by Netflix, Hulu, and other streaming services should mean we can get rid of the hated cable television bundle. Only we don’t she says, because we “actually love bundles.”

Her argument runs into trouble almost immediately when attempting to conflate a-la-carte economics of the television business with the likely impact of that type of pricing on hotels, airlines, and restaurants:

When you book a hotel, you expect “complimentary” mattresses, sheets and towels, rather than renting each individually. When you go to a restaurant, you don’t pay extra to enjoy the use of a plate. And you get very testy indeed upon discovering that your bargain airline charges you to choose a seat or bring luggage.

Bundling, it turns out, is valuable. You aren’t willing to give up complimentary shampoo and towel service when you’re traveling, because that turns every shower into a financial decision. The hotel, meanwhile, would need more staff to field requests for trivia, raising the price of the room. Much better for everyone to sell you a bundle that we call a “hotel room” but that really includes a bunch of ancillary products you might like to use during your stay.

In 2014, the Washington Post editorial page endorsed the Comcast-Time Warner Cable merger that eventually fell apart.

Value is in the eye of the beholder, and hundreds of thousands of cable customers are doing what was once unthinkable for the cable industry (and Ms. McArdle) — they are cutting the cord to their cable television package for good. That is a fact many cable executives are now willing to acknowledge. It is why CEO’s complain about the inflation rate of cable programming costs and the fact subscribers are no longer amenable to annual budget-busting rate hikes for cable television. Some cable companies now attempt to hide those growing costs in fine print surcharges for broadcast TV stations and sports programming. Others are offering new slimmed-down cable package options for customers no longer willing to pay for dozens of channels they will never watch. It’s a story we’ve covered for nine years, but one Ms. McArdle obviously missed.

Her analogies about an a-la-carte world for hotels and airlines isn’t a good one because nobody staying in a motel or flying complains about getting too much from either. As with all things, there is a general consensus about what one can expect staying in a Holiday Inn or flying Delta. You can find outliers like the seedy motel with hourly rates that charges for clean sheets or the airline that is now contemplating new seating arrangements that cram people even tighter into an almost-standing position. But when you signed up for cable television, you did not expect or ask for hundreds of channels — many added not because subscribers valued them but because of corporate contract decisions or launch bonuses. But you didn’t have much of a choice with “take it or leave it” lineups. McArdle’s argument falls into the industry’s favorite talking point of all — the value proposition. ‘Yes, your cable bill is now headed for $200 a month, but look at all the value we give you by bundling dozens of networks you’ve never heard of with a phone line you don’t want and an internet connection that we now target for our annual rate hikes.’

Bundled pricing is designed to trap you into their business model, and any attempt to claim we “love” those pricing plans is extremely misguided.

Take Spectrum’s misleading promotion for a year of their triple play bundle, marketed as: TV+Internet+Voice with a price of $29.99/mo each. Not a bad deal. One can take internet service and television, for example, and expect to pay just under $60 a month for both. That’s a fine price. But then you missed the fine print. It actually says “from $29,99/mo each for 12 months when bundled.” To actually get those services for $29.99 a month each you have to take all three. If you just want the aforementioned bundle of television and internet service, the promotional price for that is $59.99 a month for television, plus $29.99 a month for internet — which adds up to one cent more than Spectrum’s triple play promotion, which also includes a phone line.

Do subscribers “love the bundle” or traditionally take it because it is the only package on offer from the cable company that makes economic sense, given the options?

McArdle continues:

Bundling is especially valuable in businesses where fixed costs account for a disproportionate share of the total price. Once you’ve gone to the monstrous expense of building and staffing a hotel, providing extra amenities generates little additional cost while adding a great deal of value for the customer. And the same is true of cable. Much of the expense comes from laying and maintaining a wire to your house; adding another channel is relatively cheap.

Right now, cable companies sell you phone, Internet service and entertainment products, all of which share one wire, one maintenance operation and one customer service staff. Without those other services, the Internet division would have to cover all that overhead. So if you pay less for the entertainment, you’re probably going to have to pay more for connectivity.

The sunk costs of cable company infrastructure have been largely paid off for years. Today’s cable systems were largely designed and last significantly overhauled in the 1990s and early 2000s to make room for more television channels. Every service contemplated for sale by the cable industry, including broadband, was designed to work over a hybrid fiber-coax network design that has been in place for 20 years. Move analog television channels to digital, and one opens up room for more broadband. Need more bandwidth for broadband? Order a node split to further divide pools of users.

The cable industry itself rejects McArdle’s argument for the one-size-fits-all cable bundle. It is why companies have started to introduce slimmed down cable packages and sell new packages of over the top streaming cable TV channels to their broadband-only customers. The costs to deliver and support the broadband services cable companies now love to offer have been declining for years, even as rates increase. Ms. McArdle is obviously also unaware of the industry’s push to launch more self-service options for customers to cut down support calls and dramatically reduce the number of truck rolls to customer homes. She may also not realize the impetus to raise prices comes not out of necessity, but from Wall Street and investors’ revenue expectations.

As cable television programming prices increase, the profit margin on cable television goes further into decline. But the cable industry makes up the difference by raising broadband prices. That is one segment of its business that remains very strong. Losing video subscribers is not the disaster Ms. McArdle suggests it could be. In fact Moody’s recently noted that with broadband profit margins about three times more than for video, the economic loss from a departing video customer can be neutralized by growing broadband subscribers at a fraction of the video unit’s loss. The ratings agency estimates that a ratio of about two broadband subscribers added for every video customer loss should offset revenue losses, while a ratio of 0.67 times that takes care of profit declines as well. That is based on current prices. Therefore, as cable companies add broadband customers, they easily offset the financial impact of video customers departing with no actual need to raise rates.

McArdle finally falls into the trap of using today’s linear TV paradigm as the basis of her argument that if all cable television channels were sold a-la-carte, they would cost astronomically more than they do as part of a bundle. But if that were true, the slimmed down competitive offerings of DirecTV Now, Sling TV, and others would be substantially more expensive than they actually are. For many customers, the out-the-door price is what matters, even if they are paying more for each of the channels they are interested in watching. A $35 DirecTV Now bill is still a lot less than an $80 cable TV bill, which often does not include surcharges and equipment fees.

Wall Street analyst Richard Greenfield of BTIG Research is so skeptical of the future of today’s bloated bundles, he has a Twitter tag: #goodluckbundle that expresses his view that bundled, linear, live television itself is decreasing in importance as viewers turn to on-demand streaming services. Subscriber satisfaction with Netflix and Hulu is much higher than almost any cable company.

One of Stop the Cap!’s readers understands subscribing to a lot of streaming services can also cost a lot, but customer satisfaction matters even more:

“It still adds up when you subscribe to a lot of services, but my satisfaction has never been higher because I am getting services with a lot of things I want to watch instead of hundreds of channels I don’t,” said Jack Codon. “When you flip through the channels and run into Sanford & SonLaw and Order, home shopping, and terrible reality show trash, you just get angry because I was paying for all of it. Now I pay Netflix and they spend the money on making more shows I will probably want to watch, as opposed to reruns I don’t.”

McArdle is correct about one thing — we should expect streaming and internet prices to increase, but not because of what she wrote. The real reason for broadband rate hikes is the lack of competition, which allows companies to implement “because we can” rate increases. Netflix itself hinted it may also increase prices incrementally down the road, but not with the intention of rewarding executives and shareholders with fat bonuses and dividend payouts. Netflix wants to pour all it can into additional content development to give customers even more reason to watch Netflix and little, if anything else.

Comcast Adding Netflix Subscription as Option to Its Bundled Packages

Phillip Dampier April 16, 2018 Comcast/Xfinity, Competition, Consumer News, Online Video 1 Comment

Comcast will soon offer its cable subscribers the option of subscribing to Netflix as part of the cable company’s cable television packages, the company announced Friday.

It will be the first time a Netflix subscription will be bundled like a premium movie channel into a cable company’s offerings. Analysts say the move is a defense against cord-cutting, on the theory that a Netflix subscription bundled into a video package will give cable TV customers the best of cable television and streaming media. But many cord-cutters doubt it, citing Comcast’s expensive and bloated cable TV packages that require customers to pay for dozens of networks they will never watch.

“Netflix is about on-demand viewing of just the movies and shows I want to see, not what Comcast wants me to see and pay for,” said Jack Codon, who cut the cord on Comcast in 2017 at his Georgia home after his latest promotion ended. “They were reluctant to give me a better deal so I gave myself a better one by no longer paying for cable television.”

Codon now subscribes to YouTube TV for local channels and a slimmed-down TV package and has paid subscriptions to Hulu, Netflix, and CBS All-Access Pass.

“It still adds up when you subscribe to a lot of services, but my satisfaction has never been higher because I am getting services with a lot of things I want to watch instead of hundreds of channels I don’t,” Codon said. “When you flip through the channels and run into Sanford & Son, Law and Order, home shopping, and terrible reality show trash, you just get angry because I was paying for all of it. Now I pay Netflix and they spend the money on making more shows I will probably want to watch, as opposed to reruns I don’t.”

Comcast customers have been able to subscribe separately to Netflix and watch its library of content on Comcast’s X1 set-top box since 2016. But now Comcast will bundle that subscription into a package directly billed to customers. Comcast claims subscribers will appreciate the simplified billing their new Netflix bundle will offer. Pricing and exact date of availability have not yet been announced.

CenturyLink Ends Prism TV Service Expansion

Phillip Dampier April 10, 2018 CenturyLink, Competition, Consumer News, Online Video 5 Comments

CenturyLink’s Prism TV

CenturyLink has stopped expanding its cable TV alternative Prism TV, and will no longer promote the service to its customers.

“Due to emerging market trends in video content and delivery, we do not plan to expand our Prism TV service offering,” CenturyLink spokesperson Francie Dudrey told Fierce Cable, in a statement delivered at the NAB Show yesterday. “We will continue to provide service and support to our current Prism TV subscribers and make the service available to qualified customers who request it in the markets where we currently offer Prism TV.”

As Stop the Cap! reported last month, CenturyLink is planning to pull back on residential broadband upgrades and services it was expecting to sell on its improved internet platform after the company announced senior management changes. One key sign CenturyLink was moving away from Prism TV was the sudden retirement of Duane Ring on March 30. Ring, a 34-year veteran at CenturyLink had been recently promoted to help oversee CenturyLink’s residential broadband upgrades and was instrumental to the launch of Prism TV in 2005.

Wall Street and activist shareholders had pushed CenturyLink hard to replace long time CEO Glen Post III, who had recently turned bullish on costly residential broadband upgrades. Post’s replacement, former Level 3 CEO Jeff Storey, wants to refocus CenturyLink on its more profitable commercial customers.

Ironically, Level 3 was acquired by CenturyLink in 2016. Now some of Level 3’s top executives will firmly control CenturyLink itself. Shareholder activists were pleased with CenturyLink’s new direction under Storey’s leadership, arguing CenturyLink shouldn’t be devoting significant resources or funding to its legacy phone and copper broadband businesses. CenturyLink will now move away from home broadband services and towards commercial and enterprise broadband, metro ethernet, and cloud/backup services. About two-thirds of CenturyLink customers are commercial enterprises.

CenturyLink will now promote DirecTV to its residential customers instead of Prism TV.

Longer term, a growing number of analysts suspect CenturyLink’s new management will want to sell off some or all of CenturyLink’s residential customers to refocus the business entirely on its commercial customers. The company refused to discuss that issue at this time. CenturyLink may find a difficult market for would-be buyers. Frontier Communications, a regular buyer of wireline assets, is itself mired in debt and financial difficulties.

Investors continue to be skeptical of the merits of costly network upgrades for the nation’s copper wire phone networks. In areas where fiber-enabled phone companies compete directly with cable, price wars can develop, reducing profits and the incentive to invest.

Cable Industry Prepares Solution for TV Password Sharing Abuse

Phillip Dampier April 4, 2018 Consumer News, Online Video Comments Off on Cable Industry Prepares Solution for TV Password Sharing Abuse

A company is testing a solution to video subscription password abuse that will register each device authorized to access streaming video, while giving customers a Forever Login, ending the need to regularly re-enter usernames and passwords to watch.

Synacor is responding to growing concerns from some in the cable industry that subscription television password sharing is allowing unauthorized access to content viewers did not pay to view. The new system is an attempt to upgrade the authenticated TV Everywhere experience to reduce subscriber inconvenience while locking down the number of concurrent devices allowed to view online content.

Currently, when a customer accesses subscription-required content online, they are asked to select their TV provider and then enter their assigned username and password to verify they are a current subscriber to a video package that includes that network. Once authenticated, the network’s website controls how long user credentials are kept before they must be re-entered, as well as how many concurrent viewing sessions from multiple family members are permitted.

TV Everywhere services were originally designed to allow the subscriber and anyone else living within the home to be able to access networks like CNN, HBO, ESPN, and others on portable devices in-home and while on the go. But many customers also share their user credentials with extended family members and friends who do not live at the same address. Unauthorized third parties also occasionally obtain user credentials through brute force hacking and sell them on the black market. The subscriber usually only discovers a security problem with their account when they reach the concurrent viewing limit, which displays as an on-screen message stating the maximum number of viewers are already watching content through a subscription and at least one must disconnect before a new stream can be viewed.

Cable company executives hold a variety of opinions about the seriousness of password sharing. Altice and Comcast, and programmers like Time Warner, Inc., which owns HBO and Cinemax, have not shown much concern about the practice, but Charter/Spectrum executives have, and are leading the charge to lock down subscriber authentication.

Synacor’s new system introduces a new layer of cable company-defined limits on streaming: registering each device allowed to view content as well as checking how many people are attempting to stream content simultaneously.

Under the new system, a customer will be permitted to register a limited number of “trusted devices” allowed access to streamed video content. A cable company, for example, could limit subscribers to two smartphones, one tablet, and one smart/internet-enabled TV or Roku box. Even if the subscriber has other devices, they would have to unregister an existing device before being allowed to register a new one. Additionally, a cable operator could limit concurrent streams to two or three, either per network or per account, regardless of what networks are being watched. That would mean, in one example, a family of four would designate a maximum of five “trusted devices” and be allowed to watch up to three concurrent streams per account. “Bill” could watch ESPN on the bedroom television, “Mary” could watch a murder-mystery on the Hallmark Channel on her tablet on the patio, and “Dylan” could watch a movie on HBO on his phone at the same time. But if “Sara” decided to watch a show on Lifetime on her phone, the system would block the request.

In the past, it was likely all four family members could watch concurrent streams of their shows on virtually any device they like, and they could also share login credentials with “Jeff” — a family member at college, who in turn shared his username and password with the other people living in his dorm room — exactly the kind of thing Charter CEO Thomas Rutledge would like to stop.

Synacor claims its new system is still a positive for consumers because it allows user credentials to be stored in perpetuity, ending the need for frequent logins to re-verify and re-authenticate one’s account, regardless of where they are. Synacor’s executive director of identity services, John Kavanagh, suggests it is a win-win for companies and consumers.

“They wanted to deliver the same user experience benefit…and we brought the trust along with it with device registration,” Kavanagh said. “The end-user experience of home-based authentication really set a high bar. They wanted to take that high bar and extend it elsewhere.”

But many subscribers, especially those with larger families, are likely to balk at the new restrictions, especially if cable operators offer to ease them in return for additional fees. The process of registering devices is also likely to be seen as cumbersome by those not technically proficient, as well as those who own a large assortment of electronic devices.

Multichannel News reports a recent study from Hub Research and CTAM that monitors the TV Everywhere market surveyed 3,491 TV subscribers who watch at least five hours of television a week and discovered 28% claimed that password sharing with friends and family members was okay and permitted by their provider, although generally it is not. Another 33% believed password sharing was allowed for family members who have since moved out of the family home and live elsewhere. No provider authorizes such viewing.

The cable industry generally does not mind password sharing for family members who are traveling or attending school and live outside of the home in a dorm, or watching on a device that belongs to a friend. They do mind if that friend keeps the user credentials and watches programming without their own subscription.

Kavanagh claims the biggest concern is “commercial-level” black market sales of user credentials to third parties who have no relationship to the account owner.

“Once we’re able to register that device securely as part of the sign-in flow, we then connect that with a complete list of devices that have been used with a given subscription,” Kavanagh said. “We not only expose that master list to the end user for their own benefit on things that might be suspicious, but on the operator side, it gives them a depth of awareness they haven’t had before. It allows them to have a fine instrument to enforce their business rules and security policies.”

Both customers and cable operators can see who is currently accessing content using their account and cancel authorization for device(s) they no longer own, lost, or are being used by those who do not have an association with the account holder at all.

The new system is being introduced on an experimental basis to some current customers, starting with Service Electric Cablevision. It is likely similar rollouts will happen with Synacor’s other clients, which include:

  • Streaming Services: Sling TV, PlayStation Vue, HBO
  • Telco TV: AT&T, Cincinnati Bell, Verizon, Windstream, CenturyLink
  • Fiber/Cable TV: WOW!, Armstrong Cable, Atlantic Broadband, Cable One, Mediacom, GCI, Hotwire Communications, Charter/Spectrum, Grande Communications

Renting? You May Lose “Free” Spectrum Cable TV Over Contract Disputes

Phillip Dampier March 28, 2018 Charter Spectrum, Competition, Consumer News, Video 6 Comments

No TV for you until you sign here.

Charter Communications is asking owners of apartment complexes, nursing homes, independent living/assisted care residences, and hotel and motel owners to sign new agreements allowing Spectrum to lock owners into a 10-year contract that includes a provision allowing retroactive rate increases and a requirement to turn over personal information on every resident to the cable company.

A number of apartment complexes bundle “free cable TV” into the lease as a selling point for renters. Others pay a discounted rate that is part of a resident’s monthly rent payment or service fee. These agreements are part of the murky world of “bulk service contracts” for cable service, and disputes between a property owner and Spectrum can cause the loss of cable service for every resident without warning.

Most of the disputes involve apartment complexes, assisted-living facilities, and hotels/motels formerly served by Time Warner Cable. Most are still under relatively short-term contracts with Time Warner Cable, which was acquired in 2016 by Charter Communications. Good Shepherd Fairview Nursing Home in Binghamton, N.Y. and Good Shepherd Communities, a senior living center in Endwell, N.Y., are good examples.

Mike Keenan has been involved in long-term senior care for 30 years, and over that time he has negotiated hundreds of contracts. But as WICZ in Binghamton reports, nothing prepared him for dealing with Spectrum and Charter Communications.

Good Shepherd Village is a senior living center in Endwell, N.Y.

Charter is using its ongoing digital conversion program as a tool to force “bulk contract” holders to sign new agreements with Charter Communications, often replacing still-valid contracts with Time Warner Cable. Many are not happy about the new terms Charter is offering, particularly one that locks them in with Spectrum service for the next decade and another that allows the cable company to raise rates retroactively.

Those unwilling to sign new contracts have been threatened with service being shut off, usually as digital conversion and TV signal encryption reaches their area, which requires new equipment to keep watching. Those complex owners that still refuse to sign are required to share each tenant’s personal details and address with the cable company.

“Spectrum had taken the position that even though we had a contract in force until December 2018 that we needed to sign a new contract immediately,” said Keenan, president and CEO of Good Shepherd Communities. “If not, they threatened that we would lose service at our Good Shepherd Fairview in Binghamton location and our Good Shepherd Villages at our Endwell location.”

Charter was true to its word. Efforts to negotiate obtaining digital adapters or set-top boxes under the old Time Warner Cable contract failed and with no warning, all 161 nursing home residents at Good Shepherd Fairview lost their cable television on Feb. 27. Two weeks later, 264 residents at Good Shepherd Village — the senior living center — also lost their television and internet service.

The loss was devastating to residents, especially at the nursing home.

“Many of the residents are frail, some of them may be bedridden and their TV means everything to them,” Keenan said.

Keenan’s contract with Time Warner Cable was still valid, and its terms made it clear as long as Good Shepherd kept their payments current, they were owed service that Charter ultimately took away from hundreds of residents.

Apartment complex owners around the country are reviewing new contracts from Charter Communications and many are dropping “free cable TV” after decades of offering the service as an amenity included in the rent. Many who are ending their contracts believe a growing number of tenants neither need or want traditional cable service.

The deal-breaker for many is Charter’s insistence on offering a bulk discount only if the entire building signs up for service, which means owners will have to pay out-of-pocket for Spectrum service in vacant units or in apartments where the tenant has service with another provider.

WICZ in Binghamton, N.Y. reports Charter Communications used nursing home residents as pawns to force the hand of a nursing home manager to sign a new Spectrum contract, even though the current one with Time Warner Cable has not expired. (3:11)

Keenan

“Let’s say you’re paying for Spectrum” – the brand name for Charter’s service – “for 100 percent of the units,” attorney Tara Snow, a partner at Novitt, Sahr & Snow, told Habitat. “You may have 90 or 95 percent of the apartments signing up, but you always have some units that don’t.”

That leaves someone on the hook, either tenants or the property owner, to pay for cable service that nobody is watching. Under Time Warner Cable just a few years ago, the cable company would pay a co-op, condo association, or apartment owner an upfront cash bonus and ongoing “revenue-share fees” for getting a majority of residents — but not all — to sign up for service. It also allowed the company to market holdouts door to door.

No such luck with Charter, which wants to be paid for every unit no matter who is at home. For property owners staying loyal to Spectrum, some are absorbing the extra costs while others pass them on to tenants as part of their rent or monthly maintenance/service surcharges. A few are trying cost sharing arrangements that divide up the total bill equally among all tenants. But as younger renters move in and increasingly show no interest in cable television, the dwindling number who have cable are paying more and more to cover those that don’t.

“People are cord-cutting,” says Brian Scally, vice president of Garthchester Realty, a management firm. “Most people who still want cable want to select their own cable/internet/telephone provider.”

Of the 64 properties he manages, Scally told Habitat fewer than a dozen have signed up for a bulk rate, and those deals were signed years ago.

“I haven’t brought anybody new to bulk rate,” he says.

The other deal breaker for many is Spectrum’s 10-year contract, which locks owners in with a cable company a lot of tenants despise.

As a result, a growing number of apartment complexes and condos are terminating their bulk cable contracts as they expire, and have no intention of renewing under Charter’s draconian terms. Affected tenants are informed the “free” cable television they were receiving is ending and they should make individual arrangements with Spectrum to maintain service going forward.

Hotel and motel owners are also finding fault with Charter Communications, and some are taking their disputes to the Federal Communications Commission.

Yvonne Peach, who owns the Historic Coronado Motor Hotel in Yuma, Ariz., says dealing with Charter has been a nightmare since the merger.

After Charter converted commercial Time Warner Cable and Bright House customers to Spectrum plans and pricing, she lost service to all of her motel rooms for more than a week.

Historic Coronado Motor Hotel – Yuma, Ariz. (Image courtesy of owner)

“When they did the change over we didn’t have any cable TV in the hotel for 12 days,” Peach told KYMA-TV.

Spectrum advised her best solution would be to install leased set-top boxes in the hotel’s 126 rooms, a solution she claims caused even more problems. It seems Spectrum’s equipment doesn’t appreciate Yuma’s southwest Arizona heat, and the boxes regularly fail when air conditioning is switched off in unoccupied rooms.

“We’ve had over 100 of them replaced probably in the last I don’t how many months,” she said. “It’s a box that if the room isn’t rented every night it becomes deactivated.”

Those paying to stay in the motel are not happy to reach their rooms and find the television isn’t working either.

“We’ve lost thousands of dollars with people that would move out because of no TV in their room,” Peach said. “It comes and it will say dial an 800 number or something. But you know the guest. They are paying a certain amount for the room and they’re not going to call.”

KYMA-TV in Yuma, Ariz. reports Charter told this hotel owner her cable boxes were not working because they are not being kept air-conditioned. (2:29)

Spectrum ignores her complaints, she claims, transferring her from call center to call center in search of a solution. She finally took her complaint to the FCC, something she does not think should be required after paying the company $1,600 a month for cable television.

In response, Spectrum blamed the lack of air conditioning for its box failures, in addition to the “relocation of the digital adapters by hotel staff, which are dedicated to a particular room on the account.”

In other words, if you move equipment between hotel rooms, Spectrum claims that equipment will deauthorize. Spectrum effectively wants motel guests placed in rooms where their cable equipment is still functioning, preferably where air conditioning is left running.

“If you’ve been driving all day and you get in your pajamas and you’re ready for bed and you’re watching TV and the TV doesn’t work, do you want to move to another room without complaining? No, nobody does,” said Peach.

In upstate New York, heat isn’t a significant problem, but having a bulk account representative in Rochester, 2.5 hours away by car from Binghamton is. The representative did not understand Binghamton and Endwell are two different communities about seven miles apart.

“This whole thing could have been avoided,” Keenan said. He called the New York Public Service Commission to complain and within a day multiple Spectrum trucks arrived loaded with set-top boxes — one per residence, potentially finally resolving the dispute, but not the bad feelings that emerged as a result.

“Time Warner Cable was saying ‘we need our customers,’” Keenan said. “The experience I have had with Spectrum is Spectrum is saying ‘you need me.’”

WICZ-TV follows up the next day with this report explaining why it is important to stay wary of cable companies offering long contracts. (1:09)

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