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Time Warner Doesn't Think Many Will Want Comcast's New HBO Promo

Time Warner CEO Jeff Bewkes isn't too worried that Comcast's new $40 25 Mbps, limited cable and HBO offer (first reported here at DSLReports) is going to promote cord cutting.

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Bewkes this week called the offer "pretty limited," adding that it "won't be attractive to most people, but might appeal to a segment."

The CEO isn't wrong, as you certainly can't be a cord cutter when you're still being forced to sign up for cable TV (well, unless you're the Wall Street Journal's Media and Marketing Editor). Bewkes, Time Warner and HBO have repeatedly refused to answer consumer calls for a standalone streaming HBO service, arguing the financials don't make sense for them.

As we noted at the time, Comcast's offer has caveats that will make it either impossible to order (it's only aimed at new customers), or financially not that attractive after the promo period expires. The up front cost of $40-$50 for 25 Mbps broadband, a very basic cable lineup and HBO might be appealing, but the price (not including hidden fees) quickly balloons after twelve months -- and again after eighteen months.

At that point users are back where they started: still waiting for a standalone streaming HBO option.
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buzz_4_20
join:2003-09-20
Dover, NH

buzz_4_20

Member

I don't know about cord cutting

But it is a good step to help with Piracy from HBO content.
elefante72
join:2010-12-03
East Amherst, NY

elefante72

Member

Re: I don't know about cord cutting

Sounds like a good deal. On promos, just flip flop or cancel if you can. If you can't, you pay. What's new.
oshkrozz
join:2013-02-12
Baltimore, MD

oshkrozz

Member

Comcast Rates

The offer actually is not bad for a comcast customer who is a quasi cord cutter:
Here is the breakdown:

Internet Only option in my area for 20m (was just reduced this month from $71):
$64/month (full rate) currently $30/m new customer signup for up to 2 years

Internet 20m +HBO + Streempix +10 channels
$70/month (full rate) $50/month for 12 months new customer rate.

As you can see if you are paying the full rate the cost difference is $6/month for HBO so as far as I am concerned its the best price you will ever get for streaming HBO (you do not need to rent anything just buy your own cable modem and skip the digital TV box they try and "rent" you).

Karl Bode
News Guy
join:2000-03-02

Karl Bode

News Guy

Re: Comcast Rates

One problem is if you're a Comcast customer considering cutting the cord, you won't get this offer (IIRC) since it's only being aimed at new subscribers.

tshirt
Premium Member
join:2004-07-11
Snohomish, WA

tshirt

Premium Member

Re: Comcast Rates

said by Karl Bode:

One problem is if you're a Comcast customer considering cutting the cord, you won't get this offer (IIRC) since it's only being aimed at new subscribers.

I think this is the trial balloon, to see the draw of this compared to the BLAST+ type offers and the churn rate at each price boost point.
If they can hold customers for more than one price bump then it may become more wide spread, otherwise it will expire and go to the promo graveyard like most market experiments.
It's to bad as I'd jump on this in a minute and MAYBE pay another $10-15 to keep it.
beyond that HBO is pretty meaningless to me.
swarto112
Premium Member
join:2004-02-17
El Dorado Hills, CA

swarto112

Premium Member

TWC didnt think blacking out CBS was a good idea as well

Typical executives more worried about investors then users. They spent all that money on the Dodgers and Lakers...looks good in the news but sucky for the rest of nation. Spend that same money on infrastructure and you're competing with FIOS and winning. Having been a FIOS customer in the past, didnt mind paying 200/mo for triple play and 50/50. Cant say the same for TWC, getting ready to cut the cord.

djrobx
Premium Member
join:2000-05-31
Reno, NV

djrobx

Premium Member

Re: TWC didnt think blacking out CBS was a good idea as well

Time Warner != Time Warner Cable

skuv
@rr.com

skuv to swarto112

Anon

to swarto112
Time Warner Cable hasn't been part of Time Warner Inc. for several years now.

They might share part of a name, but they no longer share decisions, financials, or management.
swarto112
Premium Member
join:2004-02-17
El Dorado Hills, CA

swarto112

Premium Member

Not sure what that has to do with this conversation.