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Charter Urges Streaming Services to Crack Down on Password Sharing

Phillip Dampier September 16, 2019 Charter Spectrum, Competition, Consumer News, Online Video 5 Comments

Charter Communications is contemplating tying piracy mitigation to renewed contracts with movie studios, cable networks, and other programmers in an effort to enforce a new authentication standard to stop password sharing on streaming services like Netflix, Hulu, Disney+, and CBS All Access.

The cable company is trying to build an alliance that will enforce authentication principles on subscribers that share passwords to streaming services. Walt Disney is the only programmer to sign on thus far, agreeing to Charter’s piracy mitigation strategies for its Disney+ service in return for a renewed contract to distribute Disney programming on Spectrum cable systems.

Thomas Rutledge, Charter’s CEO, has spoken frequently about revenue erosion caused when consumers share their streaming accounts with friends and extended family members. Spectrum enforces geofencing on its subscribers, prohibiting access to certain streamed content outside of the home. Rutledge has not been specific about exactly what types of limitations would be imposed under the new strategy, but examples could include geofencing, periodic location checks, and limits on the number of devices authorized to view content.

“Ultimately our goal is that we can get an alliance of a large enough group of programmers and operators to protect the value of the content that people produce and the content that we distribute and we pay for,” Chris Winfrey, Charter’s chief financial officer, said last week at the Bank of America Merrill Lynch 2019 Media, Communications & Entertainment Conference in Beverly Hills.

Winfrey severely criticized programmers that turn a blind eye to the practice of password sharing, claiming such practices are “insane.”

“To think that it doesn’t impact the way we get paid, it does,” Winfrey said. “And it conditions the entire marketplace to think that content should be devalued, it should be free, and that’s the way it is and I shouldn’t have to pay for it. It’s our firm belief that we’d be growing and growing significantly [if it wasn’t for password sharing].”

Spectrum Starts Selling Discounted $19.99/Mo “Lifestyle” TV Package With 50+ Channels

Phillip Dampier June 3, 2019 Charter Spectrum, Competition, Consumer News 17 Comments

Spectrum customers in some highly competitive service areas are being offered more discounted services than ever before, including a $20 Lifestyle TV package with 50+ cable networks and local channels can be bundled with up to 200 Mbps internet access for $59.98 a month for 12 months (not including the $11.99/mo Broadcast TV Fee).

Spectrum Lifestyle TV ($19.99/mo) includes all local TV channels, plus:

  • AMC
  • MSNBC
  • Arts & Entertainment
  • Cartoon Network
  • CNN
  • SyFy
  • Discovery Channel
  • EWTN
  • E!
  • Inspiration
  • Food Network
  • ION
  • Freeform
  • TBN
  • FX
  • WGN America
  • Hallmark
  • BET
  • Hallmark Movies & Mysteries
  • TV Land
  • HGTV
  • VH-1
  • Lifetime Channel
  • OWN TV
  • Oxygen
  • BET Jams
  • Spectrum News
  • BET Soul
  • TBS
  • Nicktoons
  • TLC
  • TV One
  • TNT
  • BET Her
  • USA Network
  • Aspire
  • Lifetime Movie Network
  • Revolt
  • History Channel
  • The Africa Channel
  • Animal Planet
  • The Impact Network
  • Spike TV
  • Nick Jr.
  • Comedy Central
  • Teen Nick
  • Bravo
  • The CW
  • Disney Channel
  • StarzEncore Black
  • Travel Channel

Customers can use their own equipment, such as Roku, Apple TV, desktop, or apps for iOS and Android, or rent traditional Spectrum set-top boxes for $7.50/mo each (add $4.99/mo to enable DVR service for one box or $9.99/mo for two or more boxes).

Spectrum’s traditional bundle promotion consists of up to 200 Mbps internet and Spectrum TV Select (125+ channels) for $89.98 a month, not including the $11.99/mo Broadcast TV Fee, so the stripped down Lifestyle TV bundle offers about $30 a month in savings.

Spectrum TV Stream is offered to cord-cutter/internet-only customers, but Lifestyle TV me be a more compelling deal.

If you want the Lifestyle TV package but want more channels, you can still save with this promotion by upgrading to the TV Silver package (175+ channels and HBO, Showtime, and the NFL Network) for $20 a month more, which is $25 less a month than what the traditional Double Play TV Silver and internet bundle costs.

Package Comparison (both offers include the same channel lineup and internet package)

  • Lifestyle TV Promo: $19.99 Lifestyle TV + $39.99 internet + $20 TV Silver Upgrade + $11.99 BTV Fee = $91.97
  • Traditional Double Play Promo: $44.99 Standard TV + $44.99 internet + $20 TV Silver Upgrade + $11.99 BTV Fee = $121.97

Stop the Cap! has confirmed this promotion is running in some AT&T service areas in the southern United States, especially Texas. You can confirm eligibility by visiting Spectrum.com and entering your street address, request to get pricing for new service, and selecting an internet-only package. The Lifestyle TV promotion will appear on the order page as a bundle option if you are qualified for the offer. Spectrum may offer you its other TV add-on packages, notably TV Stream ($24.99/mo), which is a less compelling streaming option with fewer channels at a higher price.

These offers and pricing are for “new customers only.” If you are a current customer, you can return your equipment at a Spectrum Cable Store location to cancel service without dealing with customer retentions, and then sign up as a new customer through the Spectrum website under the name of another family member or friend. Select self-install/pickup equipment in-store and you can get service under a new account on the same day. Otherwise, you must disconnect service for 30 days before qualifying again as a new customer. Depending on how much competition exists in your area, pricing and promotions can vary. Customers may find promotional pricing locked in for 12, 24, or 36 months depending on how much Spectrum is fighting to win customers in each area. Be sure to look out for free upgrades, particularly to 400 Mbps internet service, which is being offered in some areas.

Bill Shock: When Your Charter Spectrum Promotion Ends…

Phillip Dampier May 2, 2019 Charter Spectrum, Competition, Consumer News 10 Comments

Your time is up. It may have been one, two, or if you are especially lucky — three years since you signed up for Charter Spectrum service. But your temporary reprieve from the high price of cable is over.

The bad news arrives in a letter:

Thank you for being a Spectrum customer. When you signed up for your services, you received a promotional discounted rate on your bill. This promotion is coming to an end. However, as a valued customer we are pleased to offer a new promotion for an additional year.

Spectrum certainly is pleased. You may not be. To avoid shocking you too much, the company does not provide a new “out the door” price. They wait until they send you your first post-promotion bill. The letter also does not remind you what you were paying, it breaks out the price of each component service of your bundle for the following 12 months in an effort to lessen the surprise.

For most Spectrum customers on a basic, new customer promotion lasting one year, the rate change is substantial — once you add it all up.

For a customer subscribed to Standard Spectrum TV with two DVR boxes, Internet Ultra (400/20 Mbps), and Spectrum Voice, here is what you can expect (prices and promotions may vary):

  • Standard Spectrum TV: Your promotional rate of $54.98 will rise to $86.97, an increase of $31.99.
  • Internet Ultra: The promotional triple-play bundled price of $54.99 increases to $74.99, up $20.
  • Spectrum Voice: The bundled price of $29.99 will decrease to $19.99, a savings of $10.

Spectrum Voice, Charter’s digital home phone line product, is the most vulnerable part of their triple play bundle. Scores of customers drop landline service at the end of a promotion because, in many cases, having the landline as part of a triple play package either came free (or almost free), or actually reduced the price of the bundle. By offering a lower rate going forward, Charter is making a token effort to convince customers not to abandon voice service, but as the company’s landline disconnects continue to accelerate, it clearly isn’t an effective tactic.

The letter also ignores Charter’s ever-rising Broadcast TV Fee, now $11.99 a month, and is compulsory for all cable TV customers. So the old monthly promotional rate of $155.75 for this particular package will rise to about $193.94, a difference of $38.19 a month. After a second 12 months, prices generally reset even higher to the published “rack rate.”

Since Charter took control of Time Warner Cable and Bright House Networks, efforts by customers to negotiate a lower rate got much tougher, but the company’s customer retention efforts have stepped up slightly over the last year. You should still expect to pay more than you did before, but it is often possible to negotiate a slightly better deal by threatening to cancel service. Some customers report more success discussing the matter in a Spectrum cable store, cable modem and set top boxes in hand. But do not be surprised if they shrug their shoulders and agree to your request to cancel your account on the spot. Spectrum, like many cable companies, has gotten pickier about who they offer promotions to, and are willing to say goodbye to barely profitable customers, especially those only subscribed to cable TV.

N.Y. Congressman Introduces Bill Forcing Cable Companies to Reveal Real Internet Speeds, Pricing

Brindisi, as he appeared in an ad slamming Charter Spectrum in the summer of 2018.

Rep. Anthony Brindisi (D-N.Y.) today introduced a bill in Congress to force cable operators fined by a state telecommunications regulator to publicly reveal the actual performance of their internet services, subscriber counts, and a complete price listing including all fees and surcharges.

The Transparency for Cable Consumers Act comes in response to New York’s experiences with Charter Communications, which was fined for failing to meet its commitments under a 2016 merger agreement allowing Charter to acquire Time Warner Cable. Brindisi made the cable company’s performance a core issue in his 2018 campaign, brazenly buying commercial time on Spectrum cable systems for 30-second ads slamming the cable company.

“I’ve heard from thousands of Upstate New Yorkers who are sick and tired of dealing with frequent rate hikes, poor customer service, and failed promises,” said Brindisi. “This is more than just an inconvenience. For families on fixed incomes, an unexpected rate hike could wreck their budget. And for people in rural communities, crawling internet speeds can take away their connection to jobs, health care, information, and important online services. When a company enters into an agreement, it should be required to hold up its part of the bargain.  We can’t keep giving these companies a free pass. If we don’t hold them accountable, nothing will change.”

Brindisi has bristled over the New York State Public Service Commission’s decision to repeatedly extend the deadline given to Charter to file an orderly exit plan winding down its cable operations in the state. The most recent extension was approved on Wednesday, now giving Charter Communications until April 5, 2019 to appeal the Commission’s decision and until May 9, 2019 to file its six-month exit plan.

Brindisi complains Spectrum is being allowed to linger even as consumers continue to contact his office with complaints about frequent rate hikes, slow internet speeds, and poor customer service. His December 2018 letter to the PSC asking the Commission to stop giving Charter additional time extensions has gone unanswered, according to Brindisi.

Brindisi’s bill attempts to walk a fine line around the federal government’s wholesale deregulation of the cable industry. Various deregulation measures stripped federal, state, and local officials of most of their powers to oversee the internet and Voice over IP telephone service. Cable television remains subject to some local oversight and regulation, but not in all areas. Many states also have so-called “state franchise” laws in place, which gives blanket authority for cable operators to offer cable television in the state without seeking a separate agreement with each community.

The Transparency for Cable Consumers Act, would require a cable or internet company to disclose information about its operations if it is fined by a state regulator:

  • The number of cable and broadband internet customers in each county;
  • The average cable bill and broadband internet bill amounts in each county;
  • A full accounting of all fees charged customers in each county; and
  • The average broadband internet speeds delivered in each county.

Rep. Anthony Brindisi (D-N.Y.) appeared on the House floor this afternoon to introduce the Transparency for Cable Consumers Act. (1:18)

Hidden Rate Hike: Spectrum Drops Premium Networks from TV Bundles

Phillip Dampier February 25, 2019 Charter Spectrum, Consumer News 7 Comments

Spectrum cable television customers with Silver or Gold tiers will find two premium channels have disappeared from channel lineups, with no corresponding decrease in rates.

This hidden rate increase took effect Feb. 15 after Spectrum dropped Cinemax from its Silver and Gold packages and EPIX from its Gold package, with little explanation. Customers have been notified they can acquire these channels a-la-carte, for an additional $9.99/mo for Cinemax and $5.99/mo for EPIX.

The premium network cutbacks were originally planned to be significantly worse, however, after Charter Communications notified some customers it was also planning to delete Starz and Encore from its Gold tier, potentially making the $40 add-on not worth the price. Just days before the changes were to take effect, Charter changed its mind about Starz and Encore, allowing those channels will continue to be available as part of the Gold package.

Some customers are upset about the changes.

“It’s a hidden rate hike,” complained Lois Blumenthal. “We are still paying the same price for Silver or Gold, only getting fewer channels for it.”

Spectrum customer service appeared to be sensitive to customer complaints and threats to downgrade cable TV service, which would only increase the impact of cord-cutting. So the company is offering a hidden deal to current customers who subscribed to Silver or Gold TV tiers before Feb. 15 and who call 1-855-70-SPECTRUM to share their displeasure about the changes:

  • Silver Plan customers qualify for one year of Cinemax at no charge, after which the network will cost $9.99/month.
  • Gold Plan customers qualify for one year of Cinemax -and- one year of EPIX at no charge, after which Cinemax will cost $9.99/mo and EPIX will cost $5.99/mo.

Customers can ask about these promotions when they call. While no expiration date was available on these offers, it makes sense to call sooner rather than later in case they disappear.

It could have been worse. Spectrum notified many of its subscribers the premium network cutbacks originally envisioned also included Starz and Encore. Charter changed its mind, but it was too late to stop notifying some subscribers about the channel deletions.

Spectrum has adjusted its advertising:

Spectrum Silver (includes TV Select — add $20 a month)

  • 175+ cable channels with FREE HD
  • Includes HBO, SHOWTIME & NFL Network
  • On-the-go with HBO GO, SHOWTIME ANYTIME
  • Enjoy thousands of On Demand choices to watch when & where you want
  • Watch on your Apple TV, Samsung Smart TV, Roku, Xbox One, tablet, smartphone or visit SpectrumTV.com
  • Download 80+ network apps and take on-the-go

Spectrum Gold (includes TV Select and TV Silver — add $40 a month)

  • 200+ cable channels with FREE HD
  • Includes HBO, SHOWTIME, STARZ, TMC, ENCORE, NFL Network & NFL Redzone
  • Enjoy thousands of On Demand choices to watch when & where you want
  • Watch on your Apple TV, Samsung Smart TV, Roku, Xbox One, tablet, smartphone or visit SpectrumTV.com
  • Download 80+ network apps and take on-the-go

For all Spectrum customers, the cost of adding most premium add-on channels a-la-carte (without a promotion) decreased effective Feb. 15:

  • HBO remains unchanged at $15/mo
  • Showtime remains unchanged at $15/mo
  • Starz was $15, decreasing to $9.99
  • Encore was $15, decreasing to $5.99
  • Cinemax was $15, decreasing to $9.99
  • TMC was $15, decreasing to $9.99
  • EPIX was $15, decreasing to $5.99

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