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Sinclair and Time Warner Cable Agree to Two More Weeks of Talks; No Blackout Tonight

Phillip Dampier December 31, 2010 Consumer News Comments Off on Sinclair and Time Warner Cable Agree to Two More Weeks of Talks; No Blackout Tonight

When the ball overlooking Times Square drops at midnight tonight, Time Warner Cable subscribers won’t have to say goodbye to local stations owned by Sinclair Broadcasting.  The two companies reached an agreement Friday to extend negotiations over programming fees paid by the cable operator until Jan. 14.

While the talks progress, Sinclair-owned stations will continue to be seen on Time Warner with no interruption.

The two companies have been locked in a dispute over programming fees that Sinclair characterizes as a dime’s worth of difference.

Sinclair owns stations in these communities.

Barry Faber, general counsel for Sinclair, said the two are arguing over Sinclair’s request to charge ten cents per month more per subscriber for their stations.

“We intend to continue our good-faith negotiations during this period with the intent of finalizing a longer-term agreement at pricing that reflects the higher cost of programming we are faced with today,” said Barry Faber, executive vice president and general counsel of Sinclair, in a statement released Friday.

The notion Sinclair faces “higher programming costs” is one some industry experts seriously question, considering Sinclair does not have a reputation for being a big spender.

Instead, many believe Sinclair is attempting to earn additional revenue they lost in the advertising downturn, attributable to the Great Recession.

The two companies hope to hammer out a final agreement after the New Year holiday, potentially ending the latest retransmission consent dispute threatening to throw channels and networks off the cable dial.

Ontario County, N.Y. Fiber Provider Wants Every Resident to Have Fiber-to-the-Home Service

Ontario County, N.Y. has completed its 200-plus mile fiber ring and is now open for business… at least for area businesses that want commercial accounts.

But the county’s Office of Economic Development has no intention of building a 21st century fiber network that consumers can’t use — it wants fiber-to-the-home service for every resident.

The formerly rural Finger Lakes county has become an economic growth spot in western New York, with urban sprawl from nearby Rochester and new high-technology businesses attracted by the area’s relatively low taxes and pro-technology attitude.

The high tech fiber ring is the most recent example of the county’s growth-oriented philosophy.

Axcess Ontario, a public-benefit corporation established to oversee the project, built the ring well under its $7.5 million budget.  In the end, the whole project ended up costing just $5.5 million.

The project benefited from faster than expected contracting work and the installation of a natural gas pipeline, through which some of the county’s fiber travels.  Much of the rest is attached to utility poles that stretch across the county’s rural farmlands and small cities, towns and villages.

Now complete, the project is capable of delivering ultra-fast service from cities like Geneva and Canandaigua to the wine-growing region of Naples, to the outer ring towns like West Bloomfield, Victor, Manchester, and Phelps.

Ontario County, N.Y.

“Our mission from the outset was to ensure that every community in Ontario County had access to fiber, no matter how remote that community might be, geographically speaking,” said Geoff Astles, chairman of Axcess Ontario’s board of directors. “We’re proud to say that not only have we accomplished that piece, but we’ve done it under budget.”

The county says the network is open to all-comers, and eight companies are currently using the network themselves or reselling access to commercial businesses that need the capacity fiber brings.  Among them — Verizon Wireless; TW Telecom; Finger Lakes Technologies Group and its sister company, Ontario Telephone Co.; WavHost; Clarity Connect; OneStream Networks; Layer 8; and Integrated Systems.

But nothing prevents a residential service provider from hopping on board, if they’re interested in providing wiring from the fiber ring to individual homes.

“We’re working with several service providers who now have plans to bring fiber to each individual residence,” Michael Manikowski of Ontario County’s Office of Economic Development says. “That’s a little bit down the road. It’s a fairly complicated technical thing that we have to attract other partners to come to the county to help us.”

“The concept of ‘fiber to the home’ is the ultimate game-changer,” said Axcess Ontario CEO Ed Hemminger. “Once residents have fiber to the home, everything changes. Someone who wants to work from home or start a home-based business can do so with ease. Not only will they have instant access to the online global marketplace, but they’ll also have confidence that their home-based Internet connection will be as fast, as reliable and as competitively priced as any office-based system. Imagine conducting videoconferences on your iPad with business partners halfway across the world, all from your living room or your back deck.”

“This project is going to make a difference in the lives of residents and business-owners for the next 25 years,” he said.

Among those reportedly interested: Frontier Communications, which runs limited fiber to some of the county’s new housing developments, but currently does not leverage that technology to deliver broadband faster than traditional DSL accounts the company sells elsewhere in the region.  Time Warner Cable also covers the more populated areas of county through its Rochester/Finger Lakes division.

Individual communities inside the county could also decide to build their own community fiber service for residents, if they are willing to wire individual homes.

Residential fiber service has rarely attracted commercial service providers, convinced the technology is overkill for most consumers.  Some also balk at the capital costs, which are considerably higher than existing copper phone wire or running coaxial cable to homes for traditional cable service.  But many communities suffering from very low speed DSL service and not well served by cable-TV find doing it themselves can deliver service that commercial companies may never provide.  Without the immediate need for quick returns on investment, towns and villages clamoring for faster broadband can finally have it, without the expense of building and running their own fiber ring.

Axcess Ontario threatens to deliver service better and faster than what is on offer further north in much larger Monroe County, which includes Rochester.  That’s because Ontario County’s advanced fiber network could ultimately scrap Frontier’s obsolete copper wire landlines and call out the incremental, slow upgrades from Time Warner Cable.

The Ontario County fiber ring is a nationally recognized broadband model. Harvard University’s Ash Center for Democratic Governance and Innovation at the John F. Kennedy School of Government this fall recognized the fiber ring as a “Bright Idea” — a promising, innovative solution that can assist other communities as they face their own challenges. And earlier this year, county officials met with the Federal Communications Commission in Washington, D.C., to educate FCC officials about the fiber ring and how it can be implemented elsewhere in the country.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WHAM Fiber Ring in Ontario County 12-29-10.flv[/flv]

WHAM-TV in Rochester reports Ontario County’s new community-owned fiber ring could eventually deliver fiber to the home service to every resident in the county.  (2 minutes)

Use the Time Warner-Sinclair Dispute to YOUR Advantage By Demanding Price Break

While Time Warner Cable and Sinclair Broadcasting duel to the Dec. 31 deadline, some Time Warner Cable customers are using the dispute to their advantage — demanding, and winning price concessions on their cable service.

Time Warner Cable has fielded so many calls about the dispute, it has added a message to its customer call-in lines to share its side of the dispute.

Listen to the announcements Time Warner Cable is using around the country on its customer service lines to address the Sinclair-Time Warner dispute. (7 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Some customers tired of being put in the middle have decided to take their business elsewhere.  Others are just threatening, which brings forth customer retention deals to keep customers from cutting Time Warner’s cord.

“I scored a one year extension of my new customer deal — $99 a month for every kind of service the cable company offers,” writes Scott from Syracuse, N.Y.  Time Warner Cable is expected to drop WSYT (Fox) and WNYS (MyNetwork TV) late Friday night.  “I told them their rate hike notice was bad enough, but dropping two stations from my lineup without offering me a refund was too much.”

Scott was prepared to switch to Verizon FiOS, but Time Warner offered a price he’ll take for some inconvenience.

“I threw my Time Warner rate hike notice in the trash — it doesn’t apply to me for a year,” Scott says.  “It took ten minutes on the phone with the cable company and now I’ll save hundreds a year.”

In Texas, Time Warner Cable customers trying to exit the cable company for a competitor found the cable company’s term contract harder to walk away from.

“They are playing hardball with me, telling me I’ll have to pay an early termination fee if I switch,” says Stop the Cap! reader Rod who lives in San Antonio.  He’s preparing to say goodbye to KABB (Fox) and KMYS (MyNetwork TV).”

“I told them with their attitude, it would be worth paying the fee to see the back of them,” Rod says.  “Besides, when you tell some of their competitors about the cable company’s exit fees, they sweeten the deal as a sign of goodwill, something I am not getting from the cable company.”

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Sinclair TW Dispute 12-30-10.flv[/flv]

Sinclair stations across the country are airing various news reports about the upcoming signal blackout on both Time Warner Cable and Bright House Networks, which uses Time Warner to negotiate programming contracts.  Virtually all are biased towards Sinclair’s position, and ignore the fact Time Warner plans to import Fox network programming regardless of what happens.  (25 minutes)

In Rochester and Buffalo, the cable company is willing to extend their $99 triple play promotion to customers threatening to drop service over the Sinclair dispute, especially when customers also mention the company’s recently announced rate hike.

“If the first person you speak with doesn’t offer you a better deal, hang up and call back,” advises Susan, our reader in Amherst, N.Y.  Both she and her mother in Cheektowaga are saving $35 a month for the next year all thanks to Sinclair and Time Warner’s money fight.

One of the stations impacted in the dispute

“We would have never thought about doing this before we started reading Stop the Cap!,” she says. “We had no idea we could get these kind of deals.”

“We’d lose WUTV (Fox) and WNYO (MyNetwork TV), but Time Warner promises all of the Fox network shows will still be aired and losing MyNetwork TV is hardly a loss at all,” Susan shares.  “Just call them and use the word ‘cancel’ and see what they offer.”

Sinclair stations are notorious for running local news operations on the cheap, when they bother to run local news at all.  So many viewers remain blissfully unaware of the dispute because many of the affected Sinclair stations are low-rated afterthoughts.  Of the 35+ impacted stations, fewer than six have serious local news operations, and many of those are in last place in the local ratings.  That’s a point Time Warner Cable had reportedly raised in their negotiations, noting the stations are not worth Sinclair’s asking price.

But the cable operator is also not saying a whole lot about the dispute on their various local news channels.  The company has instead taken out full page advertisements in newspapers alerting viewers to the upcoming signal disruptions and pushing customers to visit the cable operator’s national carriage dispute website: RollOverOrGetTough.com.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Time Warner News Sinclair 12-30-10.flv[/flv]

Time Warner Cable briefly mentioned the dispute between the cable company and Sinclair Broadcasting on a few of their local news channels.  (2 minutes)

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/WHAM Rochester TW Sinclair Dispute 12-30-10.flv[/flv]

WHAM-TV in Rochester took a third party look at the dispute and explained it to western New York viewers.  Special bonus: A brief interview with Scott Fybush, editor of Northeast Radio Watch who understands western New York media like few others.  (3 minutes)

Breaking News: Sinclair Says Time Warner Cable Ends Talks, Stations Going Dark Friday Night

Phillip Dampier December 29, 2010 Consumer News, Public Policy & Gov't 3 Comments

Sinclair Broadcast Group, Inc. today said Time Warner Cable Inc. will no longer hold talks in a programming dispute between the two firms. The stations will no longer be available on Time Warner Cable after December 31st.

According to Sinclair, Time Warner did not accept its latest offer of a monthly $0.10 increase per station, per subscriber.

Officials from Time Warner, however, said the cable company “has at no time told Sinclair that we were terminating negotiations.”

But Time Warner Cable has strengthened its hand in negotiations with its own agreement with the Fox network, which will allow the cable operator to continue carrying all Fox network programming after the local stations are blacked out.

A source at Time Warner Cable tells Stop the Cap! subscribers who have called the cable company to complain have been generally satisfied once they learn the network shows will still be available.

“It may cost viewers some Judge Judy, People’s Court, and a whole mess of program length ads these stations run all night and on weekends, but as long as they still can watch Glee and football, they are fine with it,” says our source.

“As for local news, does anyone watch Sinclair stations for local newscasts?  There are better choices, and viewers already knew that,” our source adds.

Time Warner Cable initially plans to place a chyron on the blacked out stations when network programming is not available, but discussions are underway about replacing that with cable-company acquired programming if the standoff continues for long.

“Time Warner Cable can easily license some older shows and movies and place them on our new ‘Fox’ channel and many viewers might find that more interesting than the stuff Sinclair stations run,” our source said.

The cable operator has experience doing exactly that in many markets, especially when they create channels to support networks like CW or MyNetworkTV that are not aired over the air in many medium-sized cities.  The cable operator could license a number of syndicated shows for free, ranging from talk programs to court shows, and run them during the day.

Stop the Cap! predicts after a few weeks at most, Sinclair will be back at the negotiating table to pound out a deal.  Sinclair stations will face an enormous financial hit from the loss of local advertising revenue, especially considering the majority of viewers still watch their stations over cable.

Stations Impacted

  • AL Birmingham — WTTO (CW)
  • AL Birmingham — WABM (MyNetworkTV)
  • FL Pensacola — WEAR (ABC)
  • FL Tallahassee — WTWC (NBC)
  • FL Tampa — WTTA (MyNetworkTV)
  • KY Lexington — WDKY (Fox)
  • ME Portland — WGME (CBS)
  • MO Girardeau — KBSI (Fox)
  • NC Greensboro — WXLV (ABC)
  • NC Greensboro — WMYV (MyNetworkTV)
  • NC Raleigh — WLFL (CW)
  • NC Raleigh — WRDC (MyNetworkTV)
  • NY Buffalo — WUTV (Fox)
  • NY Buffalo — WNYO (MyNetworkTV)
  • NY Rochester — WUHF (Fox)
  • NY Syracuse — WSYT (Fox)
  • NY Syracuse — WNYS (MyNetworkTV)
  • OH Cincinnati — WSTR (MyNetworkTV)
  • OH Columbus — WSYX (ABC)
  • OH Columbus — WTTE (Fox)
  • OH Dayton — WKEF (ABC)
  • OH Dayton — WRGT (Fox)
  • SC Charleston — WTAT (Fox)
  • SC Charleston — WMMP (MyNetworkTV)
  • PA Pittsburgh — WPGH (Fox)
  • PA Pittsburgh — WPMY (MyNetworkTV)
  • TX San Antonio — KABB (Fox)
  • TX San Antonio — KMYS (MyNetworkTV)
  • VA Norfolk — WTVZ (MyNetworkTV)
  • WI Milwaukee — WVTV (CW)
  • WI Milwaukee — WCGV (MyNetworkTV)
  • WV Charleston — WCHS (ABC)
  • WV Charleston — WVAH (Fox)

Time Warner’s Rate Increases Arrive in Western NY: Almost Everything Going Up

Phillip Dampier December 27, 2010 Consumer News, Editorial & Site News 13 Comments

Time Warner Cable has begun notifying western New York cable subscribers their rates are going up, effective in about three weeks.

The cable company includes the notification in customer bills arriving throughout December and early January in the Rochester and Finger Lakes region of upstate New York.

The new prices are the result of higher programming costs, the development of new innovative features, and continued investment in our infrastructure and investment.

Rates for Road Runner, Time Warner’s broadband service, are increasing as much as five dollars per month.  This represents the third increase in broadband rates for Time Warner customers in the last 13 months, and should finally bury any notion the cable operator needs to implement Internet Overcharging schemes to recoup usage costs.  Time Warner Cable’s Road Runner Turbo package was priced at just under $50 a month two years ago.  Today, the same service costs $64.90 per month for standalone customers — a $14.90 increase.

2011 Pricing: Turbo - up to $64.90, Standard - up to $54.95, Basic - up to $37.95, Lite - $25.99

Customers on bundled service packages will see rate increases of around $5 for a digital cable-only package, $7 for a cable-broadband package, $6 for a cable-phone package, and $9 for “All the Best” which delivers cable, phone, and Internet service.  Those with multiple televisions will see a doubling of rates for each additional TV hooked up to digital cable (was $0.50, now $1.00), a $0.16 decrease in the monthly rental cost of a traditional cable box, and a $0.04 increase in the cost for the remote control.

A rate increase for the Rochester, N.Y. area

Existing and new customers might find a year of savings with the company’s current Triple Play $99 promotional offer, which some report to be good for existing subscribers adding additional services.  For one year, subscribers will pay $33.33 each for broadband, video, and phone service (you must take all three).  For a subscriber with cable and broadband, adding the phone service actually will cost you nearly $20 less per month, even if you never bothered to use it:

Choose the speed that's right for you at the price that's not.

2011 Rates

  • Watch N Surf: $118.99 per month
  • Triple Play Promotion: $99 per month

Customers are reminded Time Warner’s retention agents are authorized to provide discounts and better offers to those threatening to take their business elsewhere.  If your rates are increasing, it might be a good time to threaten to walk and see what kind of offers the cable company provides to get you to stay.

Share your views and retention offers in our Comment section.

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