Hobbs

Landel Hobbs tendered his resignation today, leaving as Time Warner Cable’s chief operating officer after serving nine years at the cable operator.

The Wall Street press is characterizing Hobbs’ departure as a leadership shakeup created as the company explores who will eventually succeed CEO Glenn Britt.

Hobbs lost out to Rob Marcus, the company’s current chief financial officer.  Marcus joined Time Warner Cable in 2005 from then-parent company Time Warner Inc., where he led mergers and acquisitions.

Marcus will assume Hobbs’ former position almost immediately, also becoming Time Warner Cable’s president.

Marcus

Hobbs was deeply involved in Time Warner’s 2009 attempt to impose Internet Overcharging schemes on its broadband customers.  Hobbs was a major defender of the company’s plans to charge customers up to three times more for their existing level of broadband service, telling customers the need to impose such pricing was “urgent.”

“If we don’t act, consumers’ Internet experience will suffer,” he wrote. “Sitting still is not an option.”

Time Warner Cable shelved those plans and has since embarked on a broadband upgrade program, introducing DOCSIS 3 technology which provides a much larger broadband pipeline to customers.  The company is expected to upgrade most of its service areas, including the cities where it tested its Internet Overcharging scheme, by the second quarter of 2011.

Marcus’ primary task is expected to be addressing the ongoing loss of Time Warner Cable customers, who have been disconnecting service at a greater rate than the company is adding customers to replace them.

Glenn Britt, Time Warner Cable’s CEO, says the cable company’s biggest challenge in 2011 is remaining “completely focused on the customer.”

Britt told Michael Grebb, writing for CableFAX, that America’s second largest cable company cannot succeed if it dictates terms to customers.

“We have to deliver a differentiated customer experience that’s linked to our brand—a brand that says ‘we give you more control in ways that are simple and easy for you, the customer,'” Britt said. “We’ve heard loud and clear from customers that they want flexibility in packaging, including the ability to buy smaller packages. We’re working hard to deliver what they’re asking for.”

Britt is referring to Time Warner’s new pared-down cable-TV tier, TV Essentials.  Currently undergoing a market trial in northeast Ohio and New York City, it deletes more expensive basic cable networks from the cable package to provide a discounted, smaller lineup to customers.

Britt’s remarks come more than a year after the cable company experimented with an Internet Overcharging scheme that would have restricted consumers’ use of Road Runner unless they were willing to pay triple the price — $150 a month — for unlimited use.  The company shelved the test after an outpouring of customer complaints and threatened congressional action.

Britt’s remarks would seem to indicate Time Warner is not going to antagonize its customers in the coming year, especially considering the economic challenges many face.  Time Warner lost more than 100,000 subscribers in the last quarter alone.

“Even if we weren’t in a bad economy, we’d still want to deliver customized products and experiences to specific customer segments, which is smart business in any environment,” Britt said. “And it just so happens our lower [revenue] customer segments are most affected by the economy and are the same customers who are really shouting about smaller packages. With respect to ‘higher-end fare,’ I would add that, even with the tough economy, we’re still seeing good demand from higher [revenue] customer segments.”

Britt added Time Warner plans to be more aggressive about its own TV Everywhere project in the coming year.  TV Everywhere delivers on-demand programming online for “authenticated” customers who also subscribe to a corresponding cable-TV package.  No cable-TV package means no access to that programming online.

“Our firm belief is that consumers want access to any content, anywhere, any time and from any device,” Britt said.

Britt signaled the cable company feels on-demand is only part of the online video equation.  Portability — the ability to access content on-the-go, is also a very high priority for Time Warner.  Britt encouraged cable programmers to get on board and participate in the TV Everywhere project to help grow awareness of the service for existing cable-TV subscribers.

Britt also telegraphed the company was moderating its tone over retransmission consent agreement battles with cable networks and broadcasters.  While previous statements from the cable operator indicated the company was prepared to “get tough” with programmers seeking dramatic price increases, Britt’s latest comments suggest the company recognized consumers do not want to be put in the middle of the disputes and the company was taking the matter to Washington lawmakers to adjudicate instead.

Time Warner faces a major showdown with Sinclair Broadcasting, owner of several network affiliate stations, which will come to a head on New Year’s Eve.

“We will continue to work hard to reach fair agreements, but we believe existing retransmission consent rules – set by the government almost 20 years ago – have not kept up with a changing marketplace,” Britt noted. “The rules are outdated, and they’re in urgent need of reform in order to avoid more public battles.”

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Bloomberg Britt Calls for Cable Content Dispute Resolution Process 11-23-10.flv[/flv]

Time Warner Cable CEO Glenn Britt told Bloomberg News the company wants to reform the retransmission consent dispute process.  (3 minutes)

Time Warner Cable's office on Mt. Hope Avenue in Rochester, N.Y.

Don’t say we never gave you anything.

Another widespread Time Warner Cable broadband and phone outage struck Rochester, N.Y., this morning, leaving many customers with lagging or no service for several hours.

Customers are entitled to service credits, but Time Warner Cable only provides them when you ask.  We’ve made it easy to collect with our easy, breezy instant service credit request menu.  The online e-mail form usually takes the shortest amount of time.  A credit for $3.16 for our Road Runner Turbo account was posted within an hour of our request.

If your area experiences an Internet outage and you can point us to your company’s methods of requesting service credits, we’ll be happy to extend this service to other areas and companies.  Just use our contact form, linked above.

Stop the Cap! Presents Your Easy Service Credit Request Menu

Customers can request one day of credit for both phone and Internet service (assuming you have both services, of course).  Make sure you request -both- credits if you are entitled.

Sample Request You Can Cut and Paste:

I am writing to request a service credit for the phone and Internet outage that occurred in Rochester today, Wednesday Dec. 1st.  Please credit my account.

Methods to Obtain Credit:

1. Use Time Warner Cable’s Online Chat system, select Billing Inquiry, and type to a customer service representative.
2. Call (585) 756-5000 or toll free 1-800-756-7956 and speak with a customer service representative.
3. Use the Online E-Mail form, select Billing Inquiry, and send a message requesting credit.

If you have nearly $200 a month burning a hole in your pocket that you’d be willing to give Time Warner Cable for a cable-TV, phone and broadband package, have we got a deal for you.

Time Warner Cable is completing a test of its Cadillac cable plan for ultra-premium customers in Charlotte, N.C.  Dubbed “Signature Home,” the plan targets the cable company’s biggest spenders with a deluxe package of cable television, phone, Road Runner Wideband high speed Internet, two premium whole-home DVR units, and a wireless home network.  Customers in Charlotte paid $179.95 a month for the service during the test.  One of the conclusions apparently reached — Time Warner was not charging enough.  As the service goes national, its price will increase by $10 a month for some, $20 for others, topping out just a nickel shy of $200 a month before taxes and fees.

For that price, customers get just about everything Time Warner Cable offers, except premium movie channels:

Time Warner Cable expects to unveil the service in other areas of the country in a matter of weeks.

CEO Glenn Britt told Bloomberg News the targeted packages of services are designed to retain different classes of customers.

“If this were a BMW this would be the 750 IL, with all the whiz-bang things,” said Britt. “It’s our package with everything we have to offer and a different service experience all wrapped up in one.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Signature Home Time Warner Cable East.flv[/flv]

Time Warner Cable produced a brief promotional video for Charlotte customers explaining the benefits of its new Signature Home service.  (2 minutes)

QUBE's "revolutionary" interactive wired remote control, from 1978 (courtesy: QUBE-tv.com)

Happy Thanksgiving to all Stop the Cap! readers.

While we take a break from our usual reports, let’s turn the clock all the way back to 1978, an era before broadband (or dial-up for the most part) and even before most of the basic cable networks know today existed.  Cable television was not even an option yet in many communities, although discussions about the concept were well underway.

In Columbus, Ohio Warner Cable constructed an experimental two-way cable system called QUBE, which brought 30,000 homes in the city access to interactive, locally-produced programming.  Viewers could vote on different topics, share their opinions, answer quizzes, and order individual pay-per-view movies — a new concept for most people back then.

Cable television in 1978 didn’t deliver CNN, TNT, ESPN, or any of dozens of other cable networks that are household names today.  Instead, most delivered clear signals of broadcast television stations received over the air from a master antenna mounted high above the local cable company, supplemented with text-based information channels running newswires, sports scores, financial tickers, weather and other wire service reports.  Locally produced government, public access and educational programming covered much of the rest of the channel lineup.  Cable radio hooked up to home stereos and delivered improved FM radio reception and some privately run cable radio stations.

QUBE was no different in this respect.  The bulk of the programming people watched came from local broadcasters and imported stations from Indianapolis, Cleveland, Cincinnati, and Athens — all selected from a wired remote control.  It total, QUBE carried 30 channels, 10 of which were premium or pay per view.  The concept was so revolutionary, some folks traveled from miles around to record sample programming off the system and share copies of videotapes with other cable enthusiasts.

QUBE was not a financial success for Warner, however.  The costs to produce interactive programming, building brand new cable systems, and purchasing the equipment to run them, caused Warner to accumulate $875 million in total debt by 1983.  It abandoned the concept a few years later because new cable networks and superstations were rapidly signing on, creating a huge number of new viewing options that effectively drowned out the locally-produced interactive shows.  Cable would remain a one-way medium, at least for awhile.

Watching the enthusiasm of Ray Glasser, who produced the video included below, all over a 30-channel cable system was fascinating, as was watching the assortment of television stations sampled from more than 30 years ago.  And check out those supermarket prices listed on one of the text channels Ray previews.  After a series of sales and ownership transfers, Warner Cable still exists in Columbus.  But today, we know it better as Time Warner Cable.

[flv width=”422″ height=”327″]http://www.phillipdampier.com/video/Qube.flv[/flv]

A video tour of Warner Cable’s QUBE system in Columbus, Ohio, produced in 1978 by Ray Glasser.  (50 minutes)