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Cox raising cable TV, HD and Internet prices in Orange County

January 29th, 2010, 1:42 pm by

Cox 2010 rate hikeCox Communications is raising the price of its major cable TV plans in Orange County between 3.6 to 10 percent, beginning March 1. And if you’re a premium movie subscriber or HD fan, expect your monthly bill to go up even higher. (Thanks to all the readers who wrote in about this.)

It’s not unexpected news as we’ve heard about TV price hikes from all the major providers in Orange County. Cox, which has its local headquarters in Rancho Santa Margarita, tends to increase prices in the spring.

“The main reason that our prices are changing is because of the rising costs of doing business. Cox is similar to a grocery store; we are a retail distributor of a wholesale product. Each year programmers like ESPN, CNN and MTV raise their costs, which then raises our costs to do business. We try to keep cable prices as low as possible, and while we absorb much of the increases incurred, we can’t absorb the full amount of fees we pay for the programmers. So, we have to pass on at least a portion of those increases to our customers,” said Lana Ong, a Cox spokeswoman.

Service 2009 2010 Change
Cox TV starter (broadcast) $20.00 $22.00 +10.0%
Cox TV essential (Broadcast, popular cable) $50.99 $52.99 +3.9%
Cox Advanced TV (Digital) $55.99 $57.99 +3.6%
DVR service $11.95 $9.99 -16.4%
HD tier $4.95 $5.50 +11.1%
Digital receiver $5.50 $5.50 0.0%
HD receiver $5.50 $7.50 +36.4%
HD DVR $5.50 $7.50 +36.4%
CableCard $1.99 $1.99 0.0%
1 premium movie $12.99 $14.00 +7.8%
2 premium movies $18.50 $21.00 +13.5%
3 premium movies $27.00 $30.00 +11.1%
4 premium movies $35.00 $38.00 +8.6%
ATV with 1 TV pak $62.49 $65.49 +4.8%
ATV with 3 TV paks $65.94 $68.94 +4.5%
ATV with 4 TV paks $68.94 $71.94 +4.4%
Internet (starter) $19.95 $22.99 +15.2%
Internet (value) 3 Mbps $28.99 $31.99 +10.3%
Internet (preferred) 10 Mbps $44.99 $46.99 +4.4%
Internet (premier) 20 Mbps $59.99 $61.99 +3.3%

The chart on the right details what services are going up. The complete document being mailed to Cox subscribers is available HERE. But what is going up?

■ HD TV service: Both the HD receiver and the HD DVR will now cost $2 more than non-HD versions. That’s a 36.4% increase. Also going up: the HD channel tier (with HDnet, HDnet Movies and HD Theater)  jumps 55-cents per month to $5.50.

■ Premium channels: If you thought spending $12.99/month on HBO was a lot, that price is jumping 7.8 percent to $14. Buy all four movie premiums — including Cinemax, Showtime and Starz — and the price goes up 8.6 percent to $38/month.

■ Basic broadcast cable: People on Cox’s cheapest TV plan, which includes only the local and broadcast channels, get a $2 price increase to $22, or 10 percent.

High speed Internet: There’s no escaping a fee increase if you’re a Cox Internet user. Prices for the starter service are going up $3/month to $22.99, or 15.2 percent. The fastest users get a 3.3 percent hike to $61.99/month. Read the rest of this entry »

FCC says cable sports hogs must share broadcasts

January 20th, 2010, 12:10 pm by

Federal Communications Commission logo

Updated, 4:08 p.m.: More details are now coming out. The FCC has finally made the 87-page ruling public and issued a press release. Plus I’ve heard from Cablevision. See updates below.
_________________________________
Noted: The Federal Communications Commission voted today that cable companies who control sports programming must share the game broadcasts with rival satellite TV and Internet TV companies.

UPDATED: Sharing isn’t quite the right word. Today’s ruling created a process where TV providers can petition the FCC if they feel “a cable operator engages in unfair acts with respect to terrestrially delivered, cableaffiliated programming,” says the FCC.

Ultimately, it could mean more “sharing” of regional sporting events as satellite TV and Internet TV providers get a chance to complain about exclusive contracts some cable companies have with local sports teams. Read the full ruling: FCC Issues Order Promoting Competition in the Video Distribution Market.

The impact hasn’t been felt as much here in Orange County but down in San Diego, many paid-TV customers couldn’t watch San Diego Padres games because they weren’t Cox Communications subscribers. Cox has the exclusive rights to show the baseball games and wouldn’t let anyone else broadcast the games, which irked the satellite TV providers and AT&T, which offers U-verse TV service.

(Neither Cox nor Time Warner have exclusivity on Angels baseball games in Orange County, according to both companies.)

In New York, Verizon and AT&T were also shut out of offering regional sports events to their viewers. In August, AT&T filed a complaint with the FCC alleging anti-competitive practices against Cablevision Systems Corp, which owns Madison Square Garden, the New York Knicks and the New York Rangers, according to a Reuters report.

Today’s 4-1 FCC ruling prevents cable providers from refusing to let competing providers access the programming. Withholding regional sports programs violates section 628 of the Cable Act and is anti-competitive.

UPDATED: Actually, says Cablevision, it’s not a matter of sharing, but the FCC has established a complaint process. Kim Kerns, with Cablevision, says this:

“While we find the legal basis for the decision unfounded, we are pleased that the FCC recognized the value of Cablevision’s local programming strategy and investments. Verizon and AT&T will not receive an FCC bailout that will allow them to capture News 12, MSG Varsity and other programming that we have developed for our customers. We are also pleased that despite the phone companies’ overwhelming lobbying effort, the FCC has ensured a process that will enable us to demonstrate that no harm has been done to the nation’s two largest phone companies. Our market is the most competitive in the nation and we are confident that we can prove that the phone companies’ poor performance in our marketplace has nothing to do with a lack of HD programming. Verizon and AT&T do not need a regulatory bailout in order to compete.”

Verizon, which competes with Cablevision, said in a press release: ”This is a big-time victory for television sports fans. The FCC’s decision to make must-see regional sports programming, including high-definition feeds, presumptively available to competitors, puts viewers in the driver’s seat,” said Kathleen Grillo, Verizon senior vice president of Federal Regulatory Affairs.

Recent sports TV news:

Africa Channel coming to Time Warner

December 9th, 2009, 5:29 pm by

The Africa ChannelTime Warner Cable is adding the Africa Channel to its lineup in Orange County and Southern California. It will be on Channel 176 as part of the Choice Tier, which includes the National Geographic channel.

The Africa Channel is part of a new TV network with featured shows on, obviously, Africa.

According to a Christian Science Monitor article, the channel is independent and privately funded. “NBA star Dikembe Mutombo, who comes from the Democratic Republic of Congo, wrote the startup’s first check. Now it relies on funding from groups such as Williams Holdings, LLC, a privately held investment firm,” says the report.

The report goes on to mention some of the difficulty a new channel has in today’s cable market: Cable companies are reluctant to add channels because bandwidth is so critical. Plus, most cable viewers stick to the same dozen channels, or fewer.

The channel offers news, sports, and lifestyle shows about Africa. More details at its site: theafricachannel.com.

Recent new channel news:

A la carte and Time Warner? Don’t hold your breath

December 4th, 2009, 3:26 am by
Time Warner Cable Q&A, December 2009
Read the series:

Last month, I met with Time Warner Cable’s local leadership, Deborah “Debi” Picciolo, president of residential services for the West Region, and Clarence Caldwell, president of network operations/engineering for the West Region. I’ve finally had time to compile the question and answer post to help readers understand their cable company just a bit better. Those answers are HERE.

Now let me get to one of the bigger questions: When will Time Warner offer a la carte so customers can pay only for the channels they want to watch?

Answer: Don’t hold your breath. Time Warner is taking the National Cable & Telecommunications Association position. The organization is the cable industry’s trade group,which earlier this year detailed this stand: A la carte forces prices up.

That statement is up for serious debate. And here are a few groups who say baloney to the notion that channel choice means higher prices. The Consumer’s Union, which publishes Consumer Reports, says choice will encourage consumers to try paid TV services (this FCC filing points out the cable industry’s flaws in the argument).

But here are some reasons why the cable industry believes cable TV prices will increase if consumers paid only for the channels they wanted. Now, bear with me since I can already hear readers’ snarky responses: Read the rest of this entry »

Time Warner expands its do-it-yourself service

November 16th, 2009, 8:23 am by

Time Warner Cable expands Easy Connect service to include DVRs.If you hate waiting all day for the cable guy to install service, Time Warner Cable will now let Orange County and Southern California customers tackle the project themselves — and save some money.

The cable TV provider is expanding its Easy Connect service, which was introduced in August for Internet equipment. The service saved customers around $20 if they installed their own cable modem.

Now customers can install their own cable box or DVR as well. If customers order new or upgraded digital cable boxes or Internet service over the Web or by phone, they’ll receive the equipment within 48 hours. No waiting on the cable guy. Plus, customers won’t have to pay the $19.95 for professional installation. The kit comes with a video showing the five installation steps.

Of course, you could also head to one of Time Warner’s local stores and get a box the same day (if they’re available) and install it yourself.

Time Warner’s spin is that it gives “customers control in ways that are simple and easy.” True, but keep in mind, this probably saves Time Warner a lot of money too. I don’t know what the going rate is but having a professional contractor stop by a customer’s house probably costs Time Warner more than $20.

For the consumer, $20  to have a pro install service doesn’t seem too high but  for most readers, the time lost waiting for the cable guy to arrive is much more valuable.

Most recent stories on Gadgetress:

Time Warner makes room for 100 HD channels, kicks out others

November 10th, 2009, 4:53 pm by

Time Warner Cable photo, courtesy of AP.On Dec. 8,  Time Warner Cable will move eight channels to digital for those in Orange County and Los Angeles. That means customers who get cable TV service by plugging a TV into the wall or using an older analog cable box will need to upgrade to digital equipment.

The change will make room for several new HD channels, including AMC HD, The Weather Channel HD, History International HD, ESPNU HD and “many more,” according to a letter sent to subscribers this week. Next month starts the company’s kickoff to reach 100 HD channels.

The analog channels that are moving – KWHY, Shop NBC, AMC, The Weather Channel, ABC Family, Oxygen, TruTV and Style — will all still be exist on the same channel number, but only in a digital format. If you don’t have a digital set-top box, you won’t be able to access them.

For customers who don’t have a digital box, Time Warner will let you borrow one for free for one year. This offer only applies to households without a digital box. If you already lease digital boxes but have an extra TV plugged into the wall, you’ll need to pay for a digital box to get all the channels on that TV.

TWC changes Channel
KWHY 22
Shop NBC 96
AMC 55
The Weather Channel 47
ABC Family 46
Oxygen 68
TruTV 49
Style 130

“With more digital carriage space available, we will be able to free up bandwidth for future uses, such as launching new channels, providing more services and offering even more HD, not to mention, this will enhance picture quality and sound on existing services,” said Darryl Ryan, Time Warner Cable’s local director of media relations.

Lots of things are going on here including: Read the rest of this entry »

Time Warner loses 84,000 customers, makes less money

November 5th, 2009, 7:53 am by

Time Warner Cable signIt was another rough quarter for Time Warner Cable, which lost TV customers, posted lower profits and saw a drop in premium channel subscriptions. It lost 84,000 video customers by the end of the third quarter, ended Sept. 30, compared with the second quarter.

But in almost all other areas, the cable TV provider grew: It added more Internet and phone customers, more digital cable customers and more multi-package customers. That helped offset the exodus of video subscribers to a loss of 25,000 customers. Overall sales were up 4 percent, to $4.5 billion, compared with $4.3 billion last year.

The company has been losing video customers as new TV services like Verizon FiOS and AT&T U-verse enter the market and customers head for the Web to view TV shows on their own time.

2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 2009
TW video
subscribers
13,297k 13,266k 13,069k 13,105k 13,048k 12,964k
Change -31,000 -197,000 36,000 -57,000 -84,000

While the number of customers fell less than 1 percent, to 14.652 million subscribers, Time Warner got a bit more money from each one. Subscription revenues grew 5 percent, to $4.3 billion, thanks to more digital video, Internet and phone customers. Separating out video alone, Time Warner made 2 percent more off TV subscribers, coming in at $2.698 billion in the third quarter, compared with $2.639 billion a year earlier.

Still, Time Warner made less money than it did a year ago. Net income fell 11 percent, to $258 million, compared with $301 million a year earlier. Part of that was because it had to pay more for the TV channels it offers customers. The cost of video programming grew 6 percent, to $1 billion. In the first 9 months this year, Time Warner spent a whopping $3 billion in programming fees, up 7 percent from last year (see its quarterly filing, page 8).

Meanwhile, more customers dropped basic video and premium channel subscriptions.

In the chart below, Time Warner notes that about 13 million pay for plain-ol’ cable TV service. About two-thirds also pay for digital cable and high-speed Internet. Read the rest of this entry »

Cable TV bills will go up if Fox, CBS get their way

October 28th, 2009, 7:57 am by

Cable TV The Wall Street Journal is reporting that Fox TV parent News Corp. and CBS Corp. are demanding that cable providers pay a monthly fee for the broadcast TV station.

News Corp. wants $1 per customer per month from Time Warner Cable Inc, reports the WSJ.  Traditionally, cable TV providers haven’t paid paid cash fees from over-the-air broadcast networks.

If News Corp. gets its way, that’s a minimum of $12 added to a customers bill. The Wall Street Journal didn’t report how much CBS is seeking.

The broadcasters say they need more money as advertising slumps and cable companies, like Time Warner and Comcast, start their new adventures in offering the same TV shows online (see earlier story on “Time Warner plans to offer popular shows online — to paying customers).

Time Warner Cable @GadgetressGot a question for Time Warner Cable? Here’s your chance to get it answered. Click HERE

News Corp’s contract with Time Warner expires at the end of the year, which means if a new contract isn’t signed, Fox could be pulled from Time Warner. This is definitely not unheard of. Remember last Christmas? Viacom, which owns Comedy Central and Nickalodeon, demanded more money per user from Time Warner. The battle over what is known as carriage fees grew so critical that Viacom ran a scrolling message below most programs telling fans to call their cable provider and demand to keep the channel. The two resolved the fee issue just hours before the New Year (see ““).

Read the Wall Street Journal story: Broadcasters Seek Cable-TV Fees

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