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Programmer Conglomerates Preparing to Ax Smaller Cable TV Networks

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Is this the future of satellite TV?

Ten years ago, large programmers like NBC-Universal, Fox, Viacom, and Time Warner started bundling new niche channels into their programming packages, forcing pay television providers to add networks few wanted just to get a contract renewal agreement in place for the networks they did want. Now, in the era of cord-cutting, those programming conglomerates are preparing to slim down.

One of the largest — Comcast/NBCUniversal — is the first to admit “there are just too many networks,” to quote NBCUniversal CEO Steve Burke.

Burke warned investors back in July that axing networks like Style and G4 was just the beginning.

“You’ll see us and others trimming channels,” Burke said during Comcast’s second-quarter earnings call. “We will continue to invest what we need to invest into our bigger channels, and we’ll continue to trim the smaller ones.”

Cable operators hope that day arrives sooner rather than later as cord-cutting continues to have an impact on cable-TV subscriptions.

For every popular cable network like USA and Bravo, cable operators get stuck carrying ratings-dogs like CNBC World, Centric, Cloo, VH1 Classic, Fox Business Network, and Fuse — all of which attract fewer than 100,000 viewers nationwide at any one time. Fuse barely attracted 51,000 viewers in 2015. But just about every cable TV customer pays for these channels, and many more.

Many cable channels wouldn’t survive without subscription fees because advertisers consider them too small to warrant much attention.

cable tvWhile Burke’s prediction has yet to slash the cable dial by more than a few networks so far, it has slowed down the rate of new network launches considerably. One millennial-targeted network, Pivot, will never sign on because it failed to attract enough cable distribution and advertisers, despite a $200 million investment from a Canadian billionaire. Time, Inc.’s attempts to launch three new networks around its print magazines Sports Illustrated, InStyle and People have gone the Over The Top (OTT) video route, direct to consumers who can stream their videos from the magazines’ respective websites.

Fierce Cable this week opined that forthcoming cord cutter-targeted TV packages streamed over the internet from players including DirecTV/AT&T and Hulu, among others, will likely start a war of cable network attrition, which may make the concept of a-la-carte cable a thing of the past. Editor Daniel Frankel believes the future will be a finite number of cable networks delivered primarily over IP networks, which are expected to dramatically pare down the traditional cable TV bundle into fewer than 100 channels. Only the most popular networks will be included in a traditional cable TV lineup, and some of these providers expect to deliver a bundle of fewer than 50 channels, including local stations. Those booted out of the bundle may still find life from viewers going OTT, if those networks can attract enough people to watch.

AT&T is hoping for the best of both worlds as it prepares to launch an internet-based package of networks under its DirecTV brand called DirecTV Now. Sources told Bloomberg News AT&T is hoping DirecTV Now will attract more subscribers by 2020 than its satellite service. At some point in the future, it may even replace DirecTV’s satellite television service.

directvDirecTV Now is expected by the end of this year and will likely offer a 100 channel package of programming priced at between $40-55 a month, viewable on up to two screens simultaneously. The app-based service will be available for video streaming to televisions and portable devices like tablets and phones. No truck rolls for installation, no service calls, and no equipment to buy or rent are all attractive propositions for AT&T, hoping to cut costs.

Since AT&T has taken over DirecTV, it has lost over 100,000 satellite customers. The threat to AT&T U-verse TV is also significant as customers increasingly look for alternatives to cable TV’s bloated and expensive programming packages. AT&T no doubt noticed the impending arrival of Hulu’s cable TV streaming platform next year and other services like Sling TV. Deploying their own streaming alternative with AT&T’s volume discounts from the combined subscribers of DirecTV and U-verse means AT&T can sell its streaming service at a substantial discount.

If consumers find the offerings from DirecTV Now and Hulu a credible alternative to traditional cable television, cord cutting could dramatically accelerate, provoking a response from cable operators likely to offer their own slimmed-down packages. So being among the 100 or so networks carried on DirecTV Now, or among the 50 or so networks Hulu is planning to offer, could be crucial to the future survival of any cable network. Those stranded in the 500-channel Universe of today’s cable television packages could be forced off the air or to an alternative means of reaching an audience such as OTT.

The lesson learned by the cable television industry is that customers are tapped out and unwilling to pay ever-rising cable TV bills for dozens of networks they’ve never watched and don’t intend to. The longer term lesson may be even more scary for some networks. Live, linear television as a concept may have seen its time come and go, at least for entertainment programming. While viewers are always going to seek live television for sports and breaking news, alternative on-demand viewing of everything else, preferably commercial-free, is a growing priority for many, especially if the price is right.

Some of America’s Largest Telecom Companies Are Overbilling You

bill errorAs part of its investigation of cable and satellite television companies, the U.S. Senate Permanent Subcommittee on Investigations found large discrepancies in how five of America’s largest cable and satellite companies—Charter Communications, Comcast, Time Warner Cable, DirecTV, and Dish—identify and correct overcharges caused by company billing errors.

The subcommittee released its report to coincide with today’s hearings on customer service and billing practices in the cable and satellite television industry. The Senate subcommittee focused its attention primarily on billing errors associated with rented set-top boxes and receivers, not programming packages or add-on services. The bipartisan report found satellite TV company Dish was probably the least prone to billing errors associated with satellite equipment and Time Warner Cable was the worst at identifying equipment billing discrepancies. Even when it did find instances of overbilling, the company refused to give customers automatic full refunds as a matter of “efficiency.”

That “efficiency” is expected to be very profitable for Time Warner Cable, which is likely to collect $1,919,844 from overbilling this year alone. Time Warner Cable estimates that, in 2015, it overbilled 40,193 Ohio customers a total of $430,393 and 4,232 Missouri customers a total of $44,152. Time Warner Cable also told the subcommittee that, during the first five months of 2016, it overbilled customers in Ohio for 11,049 pieces of equipment, totaling $108,221.

Charter Communications only did marginally better, mostly because it is a much smaller cable company. Charter estimates that it has overcharged approximately 5,897 Missouri customers a total of $494,000. Charter, along with Time Warner Cable, made no effort to trace equipment overcharges to their origin unless customers specifically asked them to and did not provide notice or refunds to customers.

Let’s review how the five companies compare:

Time Warner Cable

time-warner-cable-sucksTime Warner Cable is notorious for its “no refunds unless asked” policy, which often leaves customers uncompensated for service outages and other problems. That policy also extends to equipment-related billing errors. During the 6.5 year time period covered by the subcommittee investigation, Time Warner Cable never automatically refunded or credited customer for equipment overcharges discovered by the company. Instead, Time Warner’s “Revenue Assurance” team quietly identified and corrected billing errors without any notification or explanation to customers, which may explain why your Time Warner Cable bill can change even when you are locked in with a promotion.

The subcommittee discovered Time Warner Cable still relies on two entirely different billing systems. One, “Integrated Communications Operations Management System”, otherwise known as ICOMS, is especially troublesome to navigate at Time Warner because the company does not use standardized coding across the entire company. Placing an order for Internet service in the Northeast Division of Time Warner Cable is completely different from ordering the same product in a city like Kansas City or the west coast. Employees have complained about ICOMS for years, noting it can take up to 30 separate codes entered correctly in the system to add just one product, like High-Speed Internet. A simple data entry error can mess up an order and generate a billing error (or a lost order or service request that is never processed). But Time Warner Cable also relies on a different platform developed by CSG to manage some of its billing. Some of Time Warner Cable’s acquisitions, like Insight Communications, have operated under the Time Warner Cable brand for several years, but still use some of the billing platforms that were in place before Time Warner took over.

The subcommittee found strong evidence ICOMS is a big problem for Time Warner Cable. Attempts to audit the platform often crash, as it did in May of this year, preventing Time Warner Cable from identifying billing issues. At best, the company only aims for an 80% correction rate using its auditing tools.

One audit uncovered 18,000 customers in the Carolinas, Midwest, and Northeast that were being overbilled for modem and CableCARD equipment. Although Time Warner Cable was going to remove the erroneous charges going forward, it had no plans to automatically refund customers it identified as overcharged unless customers somehow realized that themselves and called in to request retroactive credit.

icoms error

Time Warner Cable erroneously billed one of its own employees for three Internet accounts.

Time Warner Cable once erroneously billed one of its own employees for three Internet accounts.

The subcommittee found if an audit showed that a customer had not been billed for equipment or services that the customer had received, the company treats those inconsistencies as undercharges and adds the charge to the customer’s bill going forward. Time Warner Cable does not attempt to retroactively charge the customer for previous months where that customer was undercharged.

If the audit shows that a customer has been billed for equipment or services that he or she does not have, the story is more complicated. In some cases, customers agree to pay for equipment they do not actually have so that they can receive a cheaper package price—for example, a consumer who wants only Internet service might decide the cheapest option is a promotional package including both Internet and cable television. By participating in the promotion, the customer agrees to pay a monthly rental fee for a set-top box but may instruct the company not to provide a set-top box. In such a case, the customer’s billing records will show a charge for a set-top box, but the customer’s equipment records will show that he or she does not physically have a set-top box. In April 2016, for example, Time Warner Cable identified 49,132 pieces of equipment associated with overcharges; of those 37,653 (approximately 77 percent) were not “correctable” overcharges because they were associated with accounts participating in promotional offers.

Time Warner Cable does not attempt to trace billing errors to their origin. Instead, it only provides a partial credit for the month during which the error was discovered. The company will not notify you of the error or for how long it has been on your bill. Unless you call and demand full credit for the overbilling, you will not receive it.

The cable company defends its policy on the ground that it is “efficient.” Going through months of customer bills to identify overcharges would be costly and time consuming, the company argues. The company also claims that the customer is best positioned to notice an overcharge and bring it to Time Warner Cable’s attention.

After reviewing policies at several different companies, the subcommittee cast doubt on Time Warner’s assertions, noting other companies had no problems returning overbilled amounts to customers without a request to do so.

Charter Communications

Unfortunately for customers, not included on the list of companies willing and able to automatically refund overbilling is Charter Communications, which recently acquired Time Warner Cable and Bright House Networks.

therealcharterbundleThe subcommittee called Charter’s process of identifying and correct overbilling “substandard.”

According to Charter, prior to August 2015, the company did not run any systematic audits to reconcile its billing records with equipment records. Charter’s failure to perform regular audits means that overcharged customers could not receive a prospective correction of their bill unless they noticed the problem themselves and contacted Charter. Beginning in August 2015, however, Charter began taking steps to identify equipment overcharges now on its system. Charter will complete that process in June 2016.

Charter recently upgraded some of its systems to make sure that when an employee adds or deletes services and/or equipment, an update to the customer’s billing record occurs automatically. Charter has 21 employees working for its Billing Quality Assurance department. The employees randomly sample bills to check their accuracy and when Charter changes its bill format or presentation, the team is supposed to review the bills to make certain any billing changes do not introduce mass errors. The subcommittee found these auditing methods were unlikely to discover common “one-off” errors, such as when customers are overbilled for equipment or programming on their specific account.

Charter’s alternate methods of identifying discrepancies quickly become more convoluted and less useful after that.

For example, beginning in August 2015, Charter undertook what it called a “controller reconciliation,” in which the company began to reconcile its billing records with equipment data from its 35 “controllers” throughout the country. These “controllers” are designed to manage box authorizations and “from the office” service connection and disconnection so that a truck roll is unnecessary. These systems can also be useful in identifying unauthorized equipment installed at locations where they were never registered or if the box was authorized for channels a customer was not paying to receive. A controller reconciliation allowed Charter to identify anomalies like in Missouri, where almost 6,000 customers were being billed for set-top boxes they were not using.

The subcommittee was unhappy neither Time Warner Cable or Charter seem willing to use “brute manpower to identify how long a customer has been overcharged and automatically grant a refund or credit,” as well as do more to minimize equipment and programming mismatches with billing records.

Comcast has bigger problems than overbilling.

Comcast has bigger problems than overbilling.

Comcast

Comcast relies on a very similar auditing process in use at Time Warner Cable to identify billing discrepancies, except once Comcast finds one it identifies how long a customer was overcharged, notifies the customer and automatically credits the customer’s account. Starting late last year, Comcast began running audits weekly to improve billing accuracy. Comcast claims just a 0.3% error rate.

Comcast has more than 60 employees nationwide on the east and west coasts examining billing issues and, when needed, individually investigates each case to identify applicable refunds.

DirecTV

DirecTV doesn’t do regular audits, instead relying on a program called SAS Enterprise Miner to search for billing errors before bills are generated. It can also use the same tools to identify and correct past billing errors. The satellite provider goes as far back as necessary to correct past mistakes, and pointed to instances where credits of thousands of dollars were issued to affected customers. DirecTV’s Revenue Assurance department can also reach out and communicate with employees at all levels of the company to investigate billing issues and prevent future ones. What will change as a result of AT&T’s ownership of the company isn’t known.

Dish Network

dishDish was cited by the subcommittee report as having the billing system least likely to generate billing errors. Dish links its equipment and billing systems together, which means any change on one system automatically updates the other.

According to Dish, it is impossible to add or remove equipment without altering the customer’s billing records. Dish provides each customer with one free “receiver”—Dish’s term for the equivalent of a set-top box—and charges $7.00 to $15.00 per month for each additional receiver a customer has. That is the only equipment charge. Dish’s system will only send a television signal to receivers that have been “activated,” which happens as part of the installation process. Once a receiver has been activated, the customer’s billing information is automatically updated to reflect that addition. That system ensures that no receiver is added to a customer’s account unless it has been activated.

Dish customers return their receivers by mail. Dish provides a packaging label so that it can track the receiver once it has been mailed. When the receiver returns to the Dish warehouse, an employee scans the barcode on the receiver, which removes the receiver from the customer’s provisioning records and, in turn, from the customer’s bill.

[flv]http://www.phillipdampier.com/video/Senate Cable Billing Practices 6-23-16.mp4[/flv]

Hearing: Customer Service and Billing Practices in the Cable and Satellite Television Industry

Permanent Subcommittee on Investigations, June 23, 2016 10:00AM ET

(Video starts at 19:55) (2:18:54)

Time Warner Cable Tests “Skinny Bundles” of Major Networks, HBO, Showtime for $10/Mo

Phillip Dampier April 18, 2016 Competition, Consumer News, Online Video 5 Comments

20 CHANNELWhile cable operators continue to deny cord cutting is real, their marketing departments think otherwise and are responding with slimmed down cable TV packages showcasing premium movie channels at a non-premium price.

This week, Time Warner Cable began offering a $10 add-on video package of over-the-air major network stations for new customers in Manhattan signing up for 50/5Mbps broadband service ($39.95 a month alone on a one year promotion in TWC Maxx markets). Oh did we forget to mention that $10 also includes both HBO and Showtime — the same networks Time Warner sells to everyone else for about $16.95 a month each?

At $10 a month, the package is a steal if you are still interested in local live/linear TV and movie channels. XFINITY Stream for Comcast is comparable, but Comcast extracts $15.99 a month for almost the same thing.

Time Warner Cable is obviously targeting disinterested Millennials that might otherwise skip television or consider the $20 Sling TV package instead.

But the cable company is downplaying the package and its price.

Time Warner Cable CEO Rob Marcus likes to remind investors at least 80 percent of Time Warner customers still subscribe to the big 200+ channel cable TV package, and Time Warner has hardly been a pioneer of “skinny bundles” that cut down the TV package to just the essentials.

Despite those assertions, the number of Americans willing to drop cable television continues to increase… and fast. Convergence Consulting notes the industry lost 283,000 video customers in 2014 and 1.1 million in 2015 — a four-fold increase. Convergence estimated at least another 1.1 million will cut the cable TV cord this year in what could become “the new normal.”

Video consumers are turning instead to on-demand, online viewing, which can provide commercial-free and binge viewing opportunities. Both Millennials and Generation X viewers are trending towards shows, not channels and networks, and many would never know (and fewer still care) what channel they were watching without the identity bug perpetually attached to the lower right of the screen.

Eventually, cable television service will likely occupy a part of a fat IP-pipe free-for-all, where viewers can still watch linear programming if they wish, but are more likely going to customize a much more personal viewing experience online instead.

Big Headaches for Frontier Takeover of Verizon Landlines/DSL/FiOS in Texas, Florida, and California

As of late Monday afternoon, Downdetector.com still shows widespread outages for Frontier customers in North Texas, western Florida and parts of California.

As of late Monday afternoon, Downdetector.com still shows widespread outages for Frontier customers in North Texas, western Florida and parts of California.

Despite promises this past weekend’s transition from Verizon Communications to Frontier Communications would result in little more than “a logo change,” countless customers in the affected states of Florida, Texas, and California reported long service outages, website problems, and long holds waiting to talk to customer service representatives about when service would be back.

The outages were most widespread on Friday morning, April 1, when many subscribers awoke to discover they no longer had phone, television, or broadband service. A blitz on social media directed at Frontier quickly followed on Facebook and Twitter, many summing up their first experience with Frontier to be like “dealing with a third-rate phone company.”

Louise Thompson called the transition “a total fiasco” and some businesses lost thousands of dollars on Friday alone. The “Happy Grasshopper” was one of them, after losing Internet and phone service.

“We have 20 employees who can’t get any work done here today,” said owner Dan Stewart.

Gerard Donelan, a real estate appraiser who works from home in South Tampa, was still without service Friday afternoon. “I talked to customer service about 10:30. … He told me service was down in the Tampa Bay area, and he didn’t know when it was coming back, and there was nothing he could do,” Donelan told the Tampa Tribune. “What a joke. These guys were telling us just yesterday how seamless this was going to be. My next phone call is to Bright House.”

welcome frontierThe popular Zudar’s sandwich shop downtown was still unable to swipe credit cards or take phone or Internet orders at mid-afternoon. “It’s having a terrible effect on business,” said owner Eric Weinstein. “It’s absolutely an epic failure on their part. An amazing lack of customer service and communication.”

frontier texasThe City of Plano (Tex.) lost its website in the transition. Frontier shared its failure with AT&T mobile customers in parts of Florida, who found cell service not working because Frontier also took control of fiber links connecting many of AT&T’s cell towers to AT&T’s network. Many of those were down too.

“During the early morning of April 1, 2016, a technical issue occurred during the integration of the systems Frontier acquired from Verizon that impacted service to some enterprise and carrier customers in Florida, Texas and California.  As of 9:30 am eastern, the issue was resolved,” the company’s statement said.  “In addition, an unrelated fiber cut occurred that impacted customers in the Tampa market.”

Across all three states, Frontier officials hurried to downplay the impact of the service outages, which are continuing to this day for some customers. In some statements, Frontier claimed only about 500 business customers lost service, and there were no widespread problems. But many of the 3.7 million customers in Texas, Florida and California enduring the transition say those outages and problems affect residential accounts.

“There is ‘absolutely nothing widespread going on?'” asked Eric Petty, an adjunct professor at St. Petersburg College. “What a bunch of liars. How stupid do they think their customers are?”

One of the biggest problems customers are encountering is the procedure to transition their online access from Verizon to Frontier. To begin that process, customers need a new Frontier ID, but that is easier said than done if you lack landline service. As part of the registration process, customers need to enter the account PIN number usually displayed on landline bills, but often missing from broadband-only service bills.

frontier floridaLee Allen of Dallas was one of many frustrated customers. He spent an hour trying to manage the Frontier MyAccount registration process and when he tried to sync his Verizon and Frontier account together, it was a flop.

Two calls to Frontier customer service and still no joy reports the Dallas Morning News.

“I’m in limbo,” he said Friday afternoon.”I’m self-employed and work from home. They are supposed to be a technology company. They should have been ready.”

Frontier says they are aware of this problem and are working on a solution.

In Los Gatos, Calif., it was an Internet-free weekend for most of the city’s former Verizon Internet customers, who also lost service on Friday. As of Sunday morning, they still didn’t have service, according to the San Jose Mercury News:

Los Gatos customers were assured the transition on April 1 would be smooth with no interruption to service. But that hasn’t been the case, said Beau Graeber, Fenesy’s neighbor who’s helping him contact the company and reconfigure his Internet.

“It’s a little frustrating,” Graeber said, adding that Verizon — now Frontier — is the only option for Internet and telephone service in Los Gatos, outside of cable or satellite providers. “For Ralph and some of my other neighbors, it’s a terrible inconvenience.”

frontier californiaConcerned customers with bills due this week are finding they don’t have enough access on Frontier’s website to arrange payment of their bill. Frontier says not to worry – “Until this process is completed on April 8th, you will only have very limited account access, even with a Frontier ID,” Frontier reports. “You can still use your Frontier ID to download the Frontier TV App, HBO GO, Watch ESPN, Disney and other popular entertainment Apps. If your bill is due during this period, rest assured that all late fees will be waived.”

Beyond total service outages and interruptions, other customers are reporting various problems with Frontier’s version of FiOS TV:

  • Frontier began migrating their 100,000 title On Demand library to FiOS on April 2. The process was supposed to be complete Saturday afternoon, but some customers are still having problems. Frontier: “We understand how important Video on Demand is to our customers. We apologize for the inconvenience and are working diligently to ensure the content is available as soon as possible. If you get a message that the service is ‘temporarily unavailable,’ you should reboot your set-top box to refresh the VOD service. To reboot, unplug your set-top box, wait at least 10 seconds, and then plug it back in. Please note, a reboot can take up to 3 minutes as the system refreshes your settings. If you continue to experience any issues accessing VOD, please call our Tech Support team at 1-877-600-1511.”
  • The Nickelodeon Jr. FiOS TV Widget/App was retired by Nickelodeon on March 31 prior to the transition to Frontier. It is, therefore, not available. Customers can still watch Nick Jr. on their home television. Customers can also access Nick Jr.’s programming via the web, at www.nickjr.com, or through Nickelodeon’s mobile apps for iOS and Android.
  • When searching for a Video on Demand title with the FiOS TV remote, customers may notice due to the transition from Verizon to Frontier, many of the movies and TV shows are not appearing in either “New Releases” or “Collections”. However, they can be found by scrolling down to “By Title” and then selecting “All” in order to find your choice. You can also search for your VOD by selecting the “B” button on your FiOS TV remote.

frontier new logoFrontier promised regulators things would go better for new Frontier customers after the company botched a similar transfer of AT&T customers in Connecticut that went so poorly, the company had to offer $50 service credits to affected customers.

“We have lessons to learn,” Frontier spokeswoman Kathleen Abernathy told Connecticut regulators at the time.

“They didn’t learn a thing,” said Stan Rogers, a transitioned Frontier customer outside of Allen, Tex. “I was there for the Connecticut switchover two months before I moved down here and now I get to experience the same thing all over again. To give you an idea of where Frontier is on the technology curve, they have sent me information about how to transition my Verizon e-mail address to AOL. Hello!”

North Texas resident Larry Allen agrees, “I didn’t think anything could drive me back to Comcast, but Frontier may do it. TV issues, email issues, Frontier can’t process my information to set up an account, horrible/outdated selection of movies on demand, [and] Frontier [is] not responding to emails for assistance.”

[flv]http://www.phillipdampier.com/video/WTSP Tampa Frontier transition not as smooth as promised 4-1-16.mp4[/flv]

WTSP in Tampa reports Florida area customers didn’t get the easy transition from Verizon to Frontier they were promised. (2:22)

[flv]http://www.phillipdampier.com/video/KTVT Dallas Frontier service problems persist for some 4-3-16.mp4[/flv]

KTVT in Dallas reports Frontier service outages created headaches for customers across North Texas. (2:08)

Comcast Abandoning Over-the-Air TV for South Boston; Will You Need Cable for NBC Shows?

whdhFor more than 20 years, Boston residents have watched NBC for free on WHDH-TV Channel 7. But if Comcast gets its way, at least four million Beantown viewers may have to subscribe to pay cable television service to keep watching.

This morning, WHDH filed suit against the cable giant in federal court in Boston alleging Comcast broke federal and state laws and an agreement it signed with antitrust regulators when it announced it would not renew WHDH’s affiliation contract with NBC. Comcast acquired NBC in 2011, after agreeing to conditions preventing the cable company from engaging in anti-competitive behavior.

Media observers say Comcast has made no secret of its desire to buy WHDH or another Boston over the air station, to build its network of affiliates directly owned and operated by the cable company. Station owner Ed Ansin isn’t selling, at least not at Comcast’s current asking price. But eyebrows were raised when Comcast announced it would end its affiliation agreement with WHDH – a well-known, high-powered television station – and move NBC programming to New England Cable News (NECN), a low-rated Comcast-owned cable channel.

Comcast-LogoUnless something changes, NECN will disappear on Jan. 1, 2017, replaced by a new “NBC Boston” cable channel. The decision will also strand WHDH without a major network affiliation, which is likely to significantly cut the station’s value and ratings.

“Comcast has a reputation for pushing the envelope wherever they can but they’ve just done an awful lot of things wrong here,” said Ansin.

In an effort to limit the damaging optics of Comcast forcing free network television programming to pay cable, Comcast announced it would also relay its NBC Boston cable channel over a UHF channel in another state now showing Telemundo programming. Those without cable will have to adjust their antennas carefully to receive WNEU-TV Channel 60, in Merrimack, N.H, the new home of NBC for Boston-area cord-cutters and cord-nevers.

WNEU's coverage area only reaches 50% of the Boston television market.

WNEU’s coverage area only reaches 50% of the Boston television market.

That may be good news for New Hampshire residents in Concord or Nashua that may have had trouble watching NBC shows over WHDH, but very bad news for about four million people inside Greater Boston who live where WNEU’s signal doesn’t reach, including those in primarily minority communities like Roxbury, Dorchester, Mattapan, and Brockton. Those residents, along with other areas in southern Boston, will likely have to call Comcast and buy cable TV to keep watching NBC starting this January.

WNEU60WHDH’s lawyers have now pushed back:

When Comcast, the largest cable company in the world, acquired NBC in 2011, there was widespread concern about the impact this unprecedented accumulation of power in the television industry would have on viewers and other market participants. Particularly in markets like Boston, where Comcast is the dominant cable provider, citizen groups, industry participants and government agencies expressed concern that Comcast would seek to leverage its cable holdings and in the process degrade its broadcasting presence and diminish the important public service role that broadcast television stations historically have played.  To address those concerns, Comcast promised its NBC affiliates (including WHDH) that it would negotiate affiliate extensions in good faith such that over the air access would be maintained, and cable interests would not influence those negotiations.  As part of the FCC’s approval of Comcast’s acquisition of NBC, the FCC adopted these same conditions in order to protect the public interest.

WHDH believes that Comcast has violated these conditions.  It also believes that Comcast’s actions violate Massachusetts law prohibiting unfair and deceptive business practices.  Finally, WHDH believes that Comcast’s actions violate federal and state antitrust laws because they have enabled Comcast to increase its monopoly power in the Boston television market, and the resulting decrease in competition will harm consumers, advertisers and other broadcasters.

In its suit WHDH is seeking an injunction and an order requiring Comcast to comply with its obligations under its agreement with WHDH and the FCC order. WHDH will also seek damages.

WHDH also accuses Comcast of stringing it along on the renewal of its affiliate agreement, claiming they were told discussions about an extension would begin “when the time was right.” WHDH says Comcast was plotting to launch its own cable network alternative all along, and didn’t negotiate in good faith. In July 2013, NECN ad sales representatives began telling advertisers it would soon become the local NBC affiliate. After WHDH protested to Comcast, the cable company claimed NECN’s statements were untrue.

“No major national broadcaster has ever terminated its relationship with a successful independent affiliate in a major market to build its own local affiliate from scratch,” WHDH lawyers wrote.

[flv]http://www.phillipdampier.com/video/WHDH Boston Major announcement involving NBC and WHDH-TV 1-7-16.mp4[/flv]

WHDH in Boston informed viewers back in January that Comcast was not going to renew its affiliation agreement with NBC. Today, WHDH’s lawyers took Comcast to court. (3:27)

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