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Here Comes More Sports on Cable… and a Higher Bill to Pay Next Year

Despite perennial protests from pay television providers that programming costs are getting out of hand, this fall viewers will find an even greater number of costly sports channels that will fuel rate increases in 2013.

The biggest boost in sports programming comes from Time Warner Cable, which has finally signed a deal with the National Football League and will also launch a series of regional and sports specialty channels for subscribers already able to watch more than a dozen sports-related networks. When it comes to betting on televised sports, a site like 4D Result 8 can definitely be trusted. The deal also affects Bright House Networks subscribers. Time Warner Cable handles programming negotiations for Bright House.

This past weekend’s addition of the NFL Network to the company’s digital standard service lineup and the niche NFL RedZone channel, which is part of the company’s $5.95 Sports Pass specialty tier comes nine years after the NFL Network launched. Time Warner Cable was the last major holdout that refused to carry the network, which costs an estimated $0.95 per cable subscriber, per month. But as League officials began gradually increasing the number of season games on the network, enraged sports fans feeling left out increasingly pelted the cable operator with complaints.

The NFL has also consistently refused to allow its primary NFL Network to appear on a mini-pay tier, available only to those willing to pay extra, instead demanding it be a part of standard service.

Another holdout, Cablevision, relented and agreed to carry the two NFL networks in August, leading to speculation the cable operator will break its promise not to increase rates in 2012 and will raise prices while blaming the addition of the costly sports networks.

At nearly a dollar per month per customer, it is a virtual certainty much, if not all, of that cost will also be passed on to Time Warner Cable customers during the next round of rate increases.

But that is just the beginning, especially if you are a Time Warner Cable customer in southern California.

In mid-August, most Time Warner customers began receiving at least one Pac-12 network on the company’s Sports Pass tier. But in Los Angeles, customers are getting two channels, one devoted to the entire conference and an extra channel dedicated to USC and UCLA coverage that every local subscriber will receive.

Your cable bill is going up again.

Both channels do not come cheap. Sports Business Journal has reported that the Pac-12 is seeking more than 80 cents per subscriber to carry its channels, about the same price charged by the Disney Channel.

Cox, Comcast, and Bright House Networks subscribers don’t get a free pass either. They will also find Pac-12 Networks on their local lineups (and bills) soon enough.

Also for southern California, Time Warner Cable is creating two new sports channels, SportsNet and Deportes (Spanish), that will exclusively carry games featuring the Los Angeles Lakers, Galaxy, Sparks, and perhaps one day the Dodgers.

The networks’ broadcast territory includes all regions that previously broadcast Lakers, Galaxy and Sparks games. That area stretches from Fresno County to the north to San Diego and Imperial County to the south. It also includes Hawaii (Time Warner Cable Deportes not available in Hawaii) and Clark County, Nev. A full list of California counties that can receive the networks: Fresno, Imperial, Kern, Kings, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, Tulare and Ventura.

The Lakers signed a $4 billion, 20-year deal with Time Warner Cable for broadcast rights, taking them away from KCAL-TV, a free over-the-air station. Time Warner will want their money back, so they will get it from you, the subscriber. Ironically, while Time Warner complains about other sports programmers insisting their networks be carried on the standard service tier, it has no problem wanting the same for its own sports channels. Subscribers throughout the region may end up covering the nearly $4 monthly cost per subscriber for the two regional sports channels, whether they want them or not.

Time Warner Cable Loses 15% of Their Analog Cable Customers; News on Broadband Caps, Pricing

Time Warner Cable has lost between 10-15 percent of their analog cable television customers over the past year, according to Time Warner Cable president and chief operating officer Rob Marcus.

Speaking at this morning’s Goldman Sachs Communacopia Conference, Marcus noted the economic downturn has continued to cost the cable operator “single play” subscribers. Marcus noted that roughly 60 percent of the cable company’s customers are now on discounted or retention plans, and the company has no plans to reduce aggressive retention offers and promotions in the immediate future. Time Warner Cable will also exercise caution when customer promotions expire, an allusion to the company’s practice of gradually resetting rates to retail prices over an extended period of time to avoid antagonizing customers into switching providers.

Marcus acknowledged broadband is now a key service for Time Warner Cable, one that the company will continue to exploit to drive earnings. Some investors have complained Time Warner has only managed an increase of 2-3 percent in Average Revenue Per User (ARPU) for broadband, a key metric for Wall Street. Marcus was asked why Time Warner, with its superior market share over telephone companies, was not “exercising the price lever a little bit more” in a marketplace lacking serious competition.

Marcus

“I think it is fair to say that as the utility of the [broadband] product increases in customers’ minds, their willingness to pay for it (assuming they are able) goes up, so I think it stands to reason that we can continue to increase rates on high speed data,” Marcus said.

But even more important to Time Warner Cable is its differentiated broadband speed tiers, which the company is refining to pick up additional revenue and price-resistant customers. Broadband usage caps will be a part of that equation.

Marcus confirmed that Time Warner Cable will provide unlimited broadband packages to its premium tier customers, but will introduce usage-limited service on its budget tiers. Currently, the company only imposes a usage cap of 5GB on its Internet Essentials package, which offers a $5 discount off regular prices. But Marcus seemed to acknowledge that the company plans to experiment further with additional limits.

“We are going to deliver very fast speeds, unlimited consumption, and now mobile capability via our Wi-Fi network to those customers who demand it and are willing to pay premium prices for those tiers of service,” Marcus said. “At the other end of the spectrum we are going to have budget products as we do today that offer lower speeds, more limited consumption like our Internet Essentials product, and those probably won’t have access to our Wi-Fi hotspots. We think that is the best way to drive revenue and profitability.”

Marcus also told investors the company was working on the next generation of the company’s electronic program guide, which he said will be cloud-based. Time Warner Cable continues to signal it is willing to work with third party set top box manufacturers to let customers dump traditional set top boxes, but only so long as Time Warner Cable gets the credit in the minds of customers. The company is also working on rolling out video-on-demand for its online video apps.

Comcast Tinkers With New 600GB Cap for Super Premium Broadband Customers

Phillip Dampier September 18, 2012 Broadband Speed, Comcast/Xfinity, Data Caps Comments Off on Comcast Tinkers With New 600GB Cap for Super Premium Broadband Customers

Unfortunately, your usage allowance does not reach Xfinity.

Comcast has introduced more generous usage allowances for some of their premium broadband customers who pay for lightning fast speeds and do not appreciate a one-size-fits-all usage cap.

Broadband Reports has reliable information the rollout of more generous caps, starting in Tucson on Oct. 1, will eventually make their way to other Comcast cities. The newly available caps vary according to the broadband tier chosen by customers:

  • Economy: 300 GB
  • Economy Plus: 300 GB
  • Internet Essentials: 300 GB
  • Performance Starter: 300 GB
  • Performance: 300 GB
  • Blast: 350 GB
  • Extreme 50: 450 GB
  • Extreme 105: 600 GB

Well, that answers that.

Karl Bode says he is unsure what the cap will be (or if there is one) on Comcast’s newest 305Mbps speed tier, not yet available in Tucson. Comcast’s usage caps only apply to residential service. Customers who refuse to tolerate limits have often switched to one of Comcast’s business broadband tiers, which come uncapped.

Customers who exceed their allowance will pay a price AT&T seems to have successfully introduced as the de facto overlimit fee for American broadband consumers: $10 for each 50GB increment over the limit.

Customers will receive an in-browser notice when they reach their limit. Comcast has a ‘three strikes and you’re out $10‘-policy — giving customers three free “courtesy passes” if they happen to exceed their allowance and do not want to pay an overlimit fee. After that, the fee will be automatically billed.

While some Time Warner Cable customers are drooling at Comcast’s regularly increasing speeds (TWC’s top speed is currently 50/5Mbps), a significant number say not having a usage cap is worth the trade-off.

“Comcast can keep their higher speeds you can’t really use with their usage caps,” shares Stop the Cap! reader Will Pryzinski. “I’m more than happy with 50Mbps from Time Warner so long as the usage limit ripoff stays far away.”

Time Warner Cable Wants $850 from Homeowner to Move Lawn Pedestal It Put in the Wrong Place

Phillip Dampier September 11, 2012 Consumer News, Grande, Public Policy & Gov't 3 Comments

Neighborhood terminal pedestals can serve from a half-dozen to 200 customers. This one is designed to service a small neighborhood.

Time Warner Cable is asking a Padre Island, Tex. customer to pay $850 to move a cable company pedestal box installed in her front yard by mistake.

Dorothy Harper’s home is located right on the shoreline, so utility companies have traditionally placed their equipment in a utility easement adjacent to the street. But Time Warner Cable, for whatever reason, decided to install their unsightly neighborhood terminal pedestal in the middle of her front yard, in front of her home, despite the city’s request that cable operators keep their equipment in a designated easement along the property line.

Harper has been trimming around the pedestal for years, irritated by its presence but infinitely patient that one day the company would do the right thing and move it to its proper location.

Her patience wore out when competing cable company Grande Communications expanded service on Padre Island and felt its own pedestal box would be right at home next to the improperly located one owned by Time Warner. Harper arrived home one afternoon to find both boxes happily creating a tremendous eyesore.

Harper told The Caller she called Grande Communications, which eventually moved their pedestal to the proper location. But Time Warner Cable proved infinitely more stubborn, even when the city got involved:

Edward Villarreal, who issues fiber optic and utility permits for the city’s Development Services, visited Harper’s property. He took photos of the cable pedestal and made phone calls to Time Warner on her behalf, without success, he said.

“It’s definitely an eyesore I wouldn’t want in the middle of my property,” Villarreal told Troubleshooter Thursday.

Harper got tired of the fight with Time Warner and backed off for a while, she said.

“Every time I drive up to our home, I am angered again at Time Warner and their negative response to a problem that their workers created,” she said.

Recently she called Time Warner again and was told they would move the pedestal if she paid $850, Harper said.

The newspaper’s troubleshooter intervened, calling Time Warner’s regional headquarters looking for a resolution and found someone a bit more sympathetic.

Jon Gary Herrera, regional vice president of communications for the cable operator said complaints about unsightly cable pedestals are common, but the company would be willing to move the one in front of Mrs. Harper’s home if the mistake was theirs.

If not, Time Warner has a solution to quiet chronic complainers. The company has been known to provide a rock facade to cover the ugly pale green lawn stump and make things more landscape friendly.

One reader had a last-ditch solution in case that did not work:

Make the switch to Grande and then arrange for someone to “accidentally” do a hit and run on the cable box thus forcing Time Warner to come out and place it in the proper location.

Texas Judge Allows Time Warner Cable to Maintain Local Station “Replacements” During Disputes

Phillip Dampier September 10, 2012 Consumer News, Public Policy & Gov't Comments Off on Texas Judge Allows Time Warner Cable to Maintain Local Station “Replacements” During Disputes

When Time Warner Cable can’t reach a retransmission consent agreement with local broadcasters, it can thank a loophole left in a badly-written contract the cable company has with Nexstar Broadcasting, a Texas station owner group, for providing a stop-gap solution.

A federal judge ruled late last week Time Warner Cable was allowed to replace local affiliates with Nexstar-owned stations because their contract does not prohibit the cable operator from the practice.

When the cable company’s carriage agreement with Hearst Corporation expired in July, Time Warner replaced affected local stations in Ohio, Kentucky, Florida, North Carolina, Vermont and New York with Nexstar-owned stations based in Terre Haute, Ind. (NBC affiliate, WTWO-TV), Wilkes-Barre, Pa. (NBC affiliate, WBRE-TV), and Rochester, N.Y. (CBS affiliate, WROC-TV).

Viewers in Kentucky ended up getting the local news from a station in western New York, located hundreds of miles away, but cable subscribers still got to watch their favorite network shows.

Nexstar sued Time Warner in federal court to stop the practice.

But Judge Jorge Solis could find nothing in Nexstar’s agreement prohibiting the cable company from importing the distant stations.

“Nowhere in the [agreement] does Nexstar limit its retransmission consent,” Solis wrote. “It appears the language limiting the broadcast […] is not present when Nexstar gives its retransmission consent under Section 1. In fact, it is specifically omitted when describing the ‘retransmission consent’ under Section 1.”

Solis refused to grant a request for a temporary restraining order and preliminary injunction stopping Time Warner from carrying Nexstar stations outside of their designated local broadcast areas.

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