Time Warner toys with raising Internet prices
March 2nd, 2010, 1:40 pm · 16 Comments · posted by Tamara Chuang, a.k.a. The Gadgetress
Spotted: Dow Jones news services picked up on an interesting sentence muttered by Time Warner Cable’s chief operating officer Landel Hobbes during an investor conference on Monday: Broadband Internet has replaced cable TV as the company’s “anchor product” so if TV service continues to slow, Time Warner can just raise Internet prices.
Reporter Nat Worden writes just a few paragraphs, enough to give us a glimpse into the future of cable bills.
“Consumers like it so much that we have the ability to increase pricing around high-speed data,” Hobbes said.
** Webcast: Listen to what Hobbes said **
While that’s discouraging news for anyone on a budget, it makes financial sense for Time Warner especially as more consumers cut cable and instead watch TV shows online for free. But this still means you need a fast Internet connection.
I listened to what Hobbes said and he went on to talk about what customers can expect from Time Warner this year: Access to TV shows online via “TV Everywhere,” and the long-rumored multi-room DVRs and features like “Start Over” and “Look Back” to allow viewers to watch TV shows they missed or forgot to record.
Hobbes also said DOCSIS 3.0, which offers faster Internet speeds of 50 down and 5 up, will be coming to more cities this year, possibly targeting markets where Verizon FiOS also offers fast service. Time Warner launched its faster Internet for around $99 in New York City, where it goes head to head with FiOS and is rumored to be targeting Texas, Ohio and upstate New York next.
That gives us hope here in Orange County for those wanting faster service and are willing to pay for it but can’t order FiOS. Faster Internet is apparently what the bulk of new Time Warner customers want. During the investor conference, Hobbes said that 70 percent of new customers opt for Turbo Internet speeds, currently at 15 mbps downstream and 2 mbps up. Comparably, FiOS offers up to 50 mbps down and 35 mbps up.
Speaking of FiOS, Time Warner considers it to be its chief rival. While AT&T U-verse does offer TV service and Internet, Hobbes remarked that U-verse service is, well, “I’d say not as good as mine.”
Time Warner is also getting ready for another big push in Verizon FiOS territory. Customers who ditched cable for FiOS are now getting to the end of 1-to-2-year contracts with Verizon, which launched FiOS in Orange County in 2007. Hobbes believes Time Warner has a good chance at winning them back.
“Typically when we lost customers to FiOS the first time … it’s because we’ve done something from a customer service perspective that made them upset, not happy with us and that’s why they leave,” he said. “From our research, we’re seeing that if there’s any part of the product set that they (Verizon) are struggling with it’s scaling the care model. That’s the reason why we think we’re going to be successful in the winback situation… We’ve got databases to track those customers. We’ve really been focusing on our care model and improving it.”
Further down the road, Time Warner plans to expand its wireless data access so broadband customers can access mobile RoadRunner Internet service on the road. The company launched the service in North Carolina and Dallas in December and is now in 8 cities, he said.
Recent Time Warner news:
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As long as TWC doesn’t start charging by the MegaByte, I’ll be happy.
Time Warner’s COO did not rule out consumption-based billing. In fact, he said that Time Warner’s public misstep last year was because it didn’t listen closely to customers. He added that the next time this comes around, the company must do a better job at educating customers about what this sort of billing is. He’s probably implying that the majority of customers don’t use a lot of bandwidth and probably don’t watch a lot of online videos.
Time Warner’s days are over. At one point they were all the rage, their years of raising prices, poor service, poor channel selection and overall poor attitudes will eventually get them.
Stop adding HD Spanish channels that nobody watches except a small segment of the population and maybe you will save some money. I went to satellite 3 months ago and will never return to cable. Cheaper, more HD channels, better quality signal and cool options, DVR, etc. for less than cable.
Are you kidding ?? TW has ALREADY raised their rates – by $2.00 per month for basic internet. Give me a break – at $48.95 per month, what new or what faster speed am I getting?
I’m in Fountain Valley – unfortunately where FIOS is not available. My TV is DirecTV because TW is so unreliable in this area.
FIOS – where are you?? I’m ready, willing, and able to pay – just get it to my curb!!
Wait, I’m in Fountain Valley and I’ve got FIOS!
serioiusly id stik to interent. not worth the extra for other shi**
I got direct because my hubby wanted the NFL channel. I like TWC better it’s easier to use and when you record shows, they actually record. It takes 5 minutes just to stroll through 5 channels. TWC rocks and I miss it. Plus their service is great. THey’re helpful and always give you updated boxes/DVRS and hook ups for free. If you have satelitte wait until you have a problem and have to make a service call, fees, fees and more fees. TWC is free.. I’m sorry they’re having financial problems.
Switched to a competitor. I get about 80 more channels (far more useful ones than I had with TW), two extra receiver boxes, a DVR that is accessible from all of the boxes, far faster internet, and am paying $84 per month compared to the $121/month I paid with TW. They need to streamline and lower prices or face extinction.
Ah, Time Warner, the monster organization that defines
the scourge that is, “Corporate America”.
Rumors of their demise, have been GREATLY under-estimated.
give me a break TW having financial problems…..just like the banks. Why do they think everyone is cutting the cable. The price is to high! What do they think will happen if they raise internet fees? Helloooooo…… goodbye TW!
it does not matter who your provider is…they all have pros and cons…just stick with whoever you’re happy with…one thing is for sure…they are all money hungry…
Verizon FIOS, please come to my area in Santa Ana … TWC sucks…crappy speed at a higher price
If they raise prices for their crappy service I’ll just cancel both cable and internet all together and go with something else even if the product is worse. I’m sick of these greedy pigs. I’m going to make a stand and say no more, we are broke our economy is crumbling and you want to raise your rates because we like your service. Why do you think everyone is going to Dish or FiOS or ick Uverse. Your greed has killed it for yourself and if the government grows the gonads to take a stand and start making cost effective internet I will work my butt off to make sure you guys lose in court or pay by people canceling services.
As it stands now we have about 3 duplicates of most channels trying to make their lineups look better. The tuners and DVRs are some of the worst. You greedily charge us for monthly rent for the receiver, DVR extra, HD tier extra. You have slowly raised your rates over the years and now you are crying because customers leave. Raise your rates see how many people cancel all together. You are just like the government, we need more money increase taxes or in your case rates. Then wonder why you lose more customers. Idiots, go pack sand.
The other great part about TWC is I’m not in a contract and so I can actually switch now. DSL I hate you but on principal alone I’m canceling cable and coming to you just because Hobbes is a greedy pig. How about you go back to the old American way where if you wanted more money you made a new invention that made our lives better.
The current business model is fake a shortage and charge more money. I guess these guys are getting so egotistical that now they don’t even have to fake a shortage they just raise rates.
America wake up take a stand start canceling your subscriptions and needs of crappy sub par products. If you lived without Cable for a year they would be OB because they couldn’t pay their loans.
Bye bye TWC hello Uverse, since you think they suck so bad I’ll donate my money to growing their company or Dish.
good ol’ time warner. Every holiday the service goes to crap.
They just raised my rates this past month.
bye bye TW