In late February, LIN Television, owner of Norfolk’s NBC affiliate WAVY and Hampton Roads’ Fox station WVBT was engaged in a high profile battle with Cox Cable over retransmission consent fees — the price the cable company pays to put over the air broadcast stations on the cable dial.  While neither side would say exactly how much money was involved, Cox Cable customers will foot the bill starting April 2nd, when the Virginia cable operator raises rates up to 18.3% for basic cable — the fourth rate hike since 2009 and the second in 10 months.

A breakdown:

• TV Starter (broadcast basic + a handful of basic cable networks) up 18.3% — was $18, now $21.30
• TV Essential (local stations + 40 popular basic cable networks) up 5.5% — was $59.99, now $63.29
• Digital set top box rental up $1 to $6.99
• Cox Internet Essential (3Mbps) up 16% — was $24.99, now $28.99

LIN Media owns local stations around the country.

Cox officials blamed the rate increases on the cost of programming, notably for local stations.

“Programming costs are rising much faster than the rate of inflation,” Felicia Blow, a Cox spokeswoman, wrote in an email to the Virginian Pilot. “While we absorb much of the increase incurred […] we must pass on a portion of the increases to our customers.”

Local broadcasters across the country are aggressively pursuing retransmission consent fees as the traditional advertising model for free, over the air television, has been challenged by the soft economy and poor ad sales.  Parent companies that own clusters of local stations also see the fees as a lucrative new revenue stream for themselves and their investors.

Over the past decade, Cox generally has raised its prices about once a year, notes the Virginian Pilot. The company began speeding up the timetable in 2010. With the latest change coming in April, Cox will have boosted rates for at least some parts of its service – particularly the cost of its most popular package – four times since November 2009.  Approximately 90 percent of 416,000 Hampton Roads-area Cox customers will be paying more for cable service this spring as a result.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/WAVY Norfolk Attention COX Communications Subscribers 2-29-12.mp4[/flv]

WAVY in February reported on its parent company’s battle with Cox Cable in this self-serving story aired on its evening newscast.  (3 minutes)

Time Warner Cable’s online streaming apps that deliver dozens of national cable networks to authenticated cable TV subscribers have never included local broadband television channels, until now.

The cable operator announced it has added 26 local stations to the lineup, but they are viewable only if you have Time Warner Cable service in the New York City region.

The new channels include primary over the air stations and digital “sub-channels” that include niche, classic, ethnic, and special interest programming:

• WCBS HDTV (CBS)
• WNBC HDTV (NBC)
• NBC NY Nonstop
• WNYW HD (Fox)
• WABC HDTV (ABC)
• Live Well HD
• WABC News Now
• WWOR HD (My9)
• WPIX-HD (PIX11)
• WPXN HD (ION)
• WXTV HD (Univision)
• WFUT HD (Telefutura)
• WNJU HD (Telemundo)
• WFME
• WLIW (PBS)
• World
• WLNY (TV 10/55)
• WMBC
• WNJN HD (or WNJB or NJN1) – PBS
• WNYE (NYC TV Life)
• WRNN
• WNET (Thirteen HD)
• V-ME
• Create
• Kids13
• Rise (Al Jazeera)

Time Warner says they have an interest in expanding local station streaming in other cities sometime this year.  When we know which cities and stations will be included, we will pass them along.

Cable operators will be challenged to find enough open video channels to support a gradual transition to IP-based video, which could mean an early end to analog cable television in large parts of the country.

The former chief technology officer of Charter Communications, Marwan Fawaz, noted cable operators will need at least 24-32 free analog channels to duplicate their digital lineup — considerably more than many operators have available on today’s crowded cable dial.

Fawaz

The transition to digital cable won’t be easy for some consumers, many who actively dislike set top boxes on every television and the endless rental fees that often accompany them.  Cable operators face more resistance from customers than their telephone and satellite competitors, who have always required equipment on every television in the home.  But with the demand for increased broadband speeds, new network-capable DVR boxes that can be accessed from other televisions in the home, and the never-ending addition of new HD channels, converting analog signals to digital is the most cost-effective way to free up space to handle today’s demands on existing cable systems.  The alternative would be expensive upgrades to increase available bandwidth — an investment unlikely to win favor on Wall Street or in company boardrooms.

Cable operators are taking different approaches to the challenge.  Comcast has been systematically reducing the number of analog signals on its cable systems, using that space for new digital signals, including HD broadcasts and faster broadband.  Time Warner Cable has deployed a transparent “on-demand” system for its lesser-watched digital channels that only transmit them into neighborhoods where viewers are watching them. Smaller operators are also moving to adopt nearly all-digital cable television lineups, especially on older systems that have already exhausted available space for new channels and services.

Fawaz says cable’s progression to IP-based delivery of cable channels is inevitable, a matter of “when” not “if,” according to an article in Light Reading:

For operators that don’t expect to have that much capacity available to them soon, he suggests that they could start off in smaller stages, perhaps beginning by moving Video-on-Demand services and some “niche” networks over to IP and supporting them with hybrid QAM/IP set-tops or gateways. Another transitional option, at least from an in-home multi-screen perspective, is to start using specialized transcoding that can convert QAM video to IP and pass those streams to tablets, PCs and other devices using the home’s Wi-Fi network.

Most cable operators are supplying customers with digital adapters that can accommodate digital signals on older, analog televisions, without a giant set top box taking up space.  To make the transition easier, operators typically provide up to 2-3 boxes for free for 1-2 years and then bill customers a nominal rental fee thereafter.

An increasing number of cable customers will become familiar with these “DTA” boxes in 2012.  Time Warner Cable, the nation’s second largest cable operator, will continue its progression to convert its cable operations to mostly-digital this year.  Time Warner’s customers in Maine were the first to experience the switch, with mixed results.  Fawaz expects some remnants of the analog lineup, as well as some limited support for QAM channels, will remain for the next 7-10 years.

ABC’s Daisy Whitney (New Media Minute) went in search for evidence that Americans really are fed up with their cable TV bill and are cutting the cord.  She collided head-on with an industry still in denial that consumers are fed up with high cable bills and relying on their home broadband connection for video entertainment.

Nielsen reports there are 5.1 million homes in the U.S. that have broadband-only service from their provider, and presumably rely on over-the-air TV for live televised events.  That’s up a huge 23 percent over last year.  But some analysts dismiss that as growth that comes from homes that never had broadband in the first place, a conclusion that needs more evidence to back it up.

Providers admit most of their new customers are coming from other broadband providers, especially as Americans dump slow DSL in favor of faster cable or fiber-delivered service.  In most areas, those who want broadband service already have it.  The primary exception: rural residents just accessing newly-available broadband for the first time.

For 20 years, the cable industry has enjoyed a growth in video subscribers.  That is no longer the case.  While the numbers are not staggering, hundreds of thousands of big cable customers are dropping their cable TV subscriptions every quarter, and they don’t seem to be taking their business to the competition.  Granted, many cancellations are income-related, especially among video-only customers, but it is clear a ceiling has been reached on what Americans will tolerate from the cable company.

With programming rate increases continuing unabated, that bill is only going up.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/ABC Quitting Cable TV Truth or Lie 2-22-12.m4v[/flv]

Daisy Whitney’s New Media Minute explores cord cutting.  (2 minutes)

Time Warner Cable and Cox Cable finally have an answer for keeping “stay at home” dogs entertained while their owners are away at work or play: DOGTV.

With more than 400 hours of research to win a rating of “puppy approved,” DOGTV will feature dog-sighted views of open car windows, dogs chasing balls around the yard, piano music, and popular movies for Fido like Beverly Hills Chihuahua.

For now, the show is running on both Time Warner and Cox Cable systems in San Diego, and is currently available for free.  Eventually, both cable companies are expected to charge $4.99 a month for the dog-centric programming.

The concept behind the idea for DOGTV is that a lonely pet left at home alone is an unhappy pet.  By leaving a television set tuned to programming that some dog experts believe will be soothing and engaging, your dog’s anxiety level can be kept as low as possible. If you have cats at home, you can buy toys to keep them company at Cat adorn.

Raising the cable bill another $5 a month might provoke anxiety in the rest of the household, however.  But as people continue to spend a fortune on keeping their favorite animal companion happy, it might prove to be the one pay-per-view event some pet lovers cannot live without.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/DogTV Sample.flv[/flv]

A sample of DOGTV’s “relaxation” programming.  (1 minute)