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Time Warner Informs Users of 4% Rate Hike
While Continuing to Pretend They Compete on Price
by Karl Bode Friday 04-Nov-2011 tags: prices · business · cable · consumers
Over the summer the cable industry paid a lot of lip service to lowering cable TV prices, insisting that they were very conscious how the recession and housing implosion left many users struggling. Time Warner Cable CEO Glenn Britt was particularly vocal, insisting that "it would behoove us to work together to meet the needs" of "the growing underclass." Their "TV Essentials" limited market tier was supposed to do this, but we've noted that it's packed with restrictions, can't be bundled, and lacks real value.

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Despite losing 128,000 video subscribers during the third quarter, Time Warner Cable continues to refuse to seriously compete on price, informing most markets they'll soon be seeing a 4% rate hike. Time Warner Cable places the usual amount of blame on high programming prices, but also insists that developing their new iPad app was responsible for the hike:

The 4.29 percent increase, she said, will affect Time Warner customers throughout the Northeast.
Salanger said, “the main drivers behind the price adjustments are the dramatically higher programming costs, additional programming and features, and continued investment in our network and customer service.”
Programming accounts for almost 40 cents of every dollar each customer pays Time Warner for TV services, she said.
And, she said, popular features that allow customers to start shows over or watch television shows on an iPad require money to develop.

The truth is Time Warner Cable continues to raise rates because they can. Despite the down economy most users continue to shell out money for costly cable subscription. However, even the most rosy outlook cable industry analysts believe it's something that simply won't last as wallets get tighter and a growing list of traditional cable alternatives continue to emerge.

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Boricua65
Premium
join:2002-01-26
Sacto Sh*tty

You know...

wouldn't it be nice if many people decided to cancel their cable/FiOS/U-Verse subscription? If enough people did so, maybe then these providers will get the message that raising prices is not the way to go. Alas, for many this would be near impossible .
--
Illegal aliens have always been a problem in the United States. Ask any Indian. Robert Orben

Duramax08
Win8 sucks
Premium
join:2008-08-03
San Antonio, TX

Re: You know...

Impossible indeed, unless you go back to dialup, that would really show the ISP's you mean business!

mod_wastrel
iamwhatiam

join:2008-03-28
kudos:1

Re: You know...

I would presume he's referring specifically to the TV aspect of their service(s) since that's what the article is focused on. Neither phone nor Internet prices have changed a whole lot since I cancelled my phone/TV services some years ago; my FiOS price hasn't changed at all in the 4+ years that I've had it.
--
"Sorry for not responding to your post, but either I haven't seen it yet, or what you said was so devoid of substance that I found it utterly uninteresting."

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5
Even at the average $100/mo for Cable TV/Internet, cable is a cheap entertainment value. A family of 4 going out 2 nights a month for a movie or sports event plus eating would more than exceed the monthly cost of the cable $. And in a down economy, this is still a good deal.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

Re: You know...

said by Linklist:

cable is a cheap entertainment value.

Until you look at what you ACTUALLY GET.
a THIRD of it is commericials 24/7
after 10pm its 90% paid programming[program length commercials]
--
Oh YES! let me drop everything i'm doing regardless of who it affects to deal with your petty little problem!
sandman_1

join:2011-04-23
11111

Re: You know...

and 99% of the channels and content are junk...
Wilsdom

join:2009-08-06
With the universal product placement and scripting done around products pretty much what you are paying for is to watch ads.
en103

join:2011-05-02

Re: You know...

How many shows (I don't mean QVC either) are effectively just ads anyways ?
Channels like HGTV are effectively paid for by Lowes/Home Depot.
Speed channel is effectively a channel for car dealers and after market parts.
I could go on.

Van
Premium
join:2009-07-08
New Orleans, LA
said by Boricua65:

wouldn't it be nice if many people decided to cancel their cable/FiOS/U-Verse subscription? If enough people did so, maybe then these providers will get the message that raising prices is not the way to go. Alas, for many this would be near impossible .

Many would need some sort of internet for work or family or something else. It is how I pay bills and talk to family, etc....and in many areas, people dont actually have legitimate companies competing with the main rival

Boricua65
Premium
join:2002-01-26
Sacto Sh*tty

Re: You know...

said by Van:

Many would need some sort of internet for work or family or something else. It is how I pay bills and talk to family, etc....and in many areas, people dont actually have legitimate companies competing with the main rival

Hence why I say near impossible. I too pay my bills through the Internet and also how I get my info (news, business, etc.).
--
Illegal aliens have always been a problem in the United States. Ask any Indian. Robert Orben

cork1958
Cork
Premium
join:2000-02-26
said by Van:

said by Boricua65:

wouldn't it be nice if many people decided to cancel their cable/FiOS/U-Verse subscription? If enough people did so, maybe then these providers will get the message that raising prices is not the way to go. Alas, for many this would be near impossible .

Many would need some sort of internet for work or family or something else. It is how I pay bills and talk to family, etc....and in many areas, people dont actually have legitimate companies competing with the main rival

If you need the internet for such things as paying bills and talking to family, that is about as lame as lame can get!!

Try doing it the old fashioned way, like mailing your bill in (might save the post office and it's workers) or using the phone (landline) to talk to family. Most everyone has a cell phone now a days, so that's even another way of talking to family. Better yet, get off the computer and go outside and drive over to the family (provided they're local). Might could even REDUCE the plan you're on with the internet and lower your bill that way.

Overall,
I think it really blows that cable companies are among the leaders of the nickel and dime you to death club though.
--
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»www.mozilla.org/projects/seamonkey/

Van
Premium
join:2009-07-08
New Orleans, LA

Re: You know...

said by cork1958:

If you need the internet for such things as paying bills and talking to family, that is about as lame as lame can get!!

Let me see if I understand this....you are trying to dictate how people should communicate (and thus what is 'lame') by how you communicate with your family?

Do you understand how absolutely idiotic and pathetic that sounds?
Heated Man

join:2009-06-18
Cleveland, OH
This is simple. If you want it you buy it? If you don't want it you don't. I don't see what the issue is here.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7
I can't tell. Is that a Model-T in your avatar? I'm guessing it is based on your antiquated tone of your post.

45612019

join:2004-02-05
New York, NY
FiOS is probably the most competitively priced multichannel video/Internet/phone bundle option in the United States.

AT&Trash and Comcap exploit their monopoly status though and cost a fortune for vastly inferior service to Verizon.

I agree with the sentiment that cable/shitverse need to be canceled but FiOS is okay for now.
Bill or Will
Bill or Will Willy J to you LOL
Premium
join:2002-05-26
Lumberton, TX
If a lot of people canceled there service due to higher and higher prices then they drop there price to get people back then they jack it back up after they had gotten back all there customers

G0d

@rr.com

it happens

This will continue to happen. Everyone acts so surprised every time it does. Costs go up everywhere so what makes you think your cable bill will always stay the same or better yet get cheaper? We just have to either accept it or get something different and pay for that.

coldmoon
Premium
join:2002-02-04
Broadway, NC
Reviews:
·Windstream

Re: it happens

said by G0d :

This will continue to happen. Everyone acts so surprised every time it does. Costs go up everywhere so what makes you think your cable bill will always stay the same or better yet get cheaper? We just have to either accept it or get something different and pay for that.

It happens because there is no competition period. Open the pipes to all and let the market sort 'em out...
--
Returnil - 21st Century body armor for your PC
travelguy

join:1999-09-03
Santa Fe, NM
said by G0d :

This will continue to happen. Everyone acts so surprised every time it does. Costs go up everywhere so what makes you think your cable bill will always stay the same or better yet get cheaper? We just have to either accept it or get something different and pay for that.

What you and many people don't understand is that for discretionary service purchases - i.e. entertainment, cost has very little to do with price.

The cablecos know exactly where the sweet spot is that maximizes the amount of money the can extract from the maximum number of customers and they know over time, that number will rise. That's how they set pricing.

All this bleating about costs going up and development of new services is just a smokescreen to make the medicine go down.

Van
Premium
join:2009-07-08
New Orleans, LA

This is where people scream that a company

can do whatever it wants, however it wants, whenever it wants and if anyone says otherwise? SOCIALIST! YOU HATE FREEDOM! AND PUPPIES!

No, not every company strives for the last, single dollar that it can get. Do companies want the best profits? Sure. But this nickle and dime crap is so far from every business that it sickens me to hear so many idiots continuing this "That is how business is done!" line whenever a company screws consumers

N3OGH
Yo Soy Col. "Bat" Guano
Premium
join:2003-11-11
Philly burbs
kudos:1

Re: This is where people scream that a company

Hey hey hey.

They hate kittens, too.....

BlueArcher
Premium
join:2003-03-11
Lexington, KY

ATTN: INSIGHT CUSTOMERS

You are welcome.

Sincerely,

Time Warner
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

1 edit

subscriber loss...

I hope the customer service line doesn't end up looking like the old AOL account cancellation problem from hell!

BTW, Comcast, Time Warner and Cablevision (maybe others) are committed to offering introductary offers @ $29.95 each for a year. So, to be able to "afford" that, they have to $$ jack up $$ the prices on EVERYBODY ELSE (read: the LOYAL customer base who wouldn't think of leaving them). They dare you to leave even though your loyal AND paying higher than $29.95 prices for your services. Though timing might come back to bite TWC... consumers are on a roll moving their money out of big banks.. and you KNOW how much of a hassle that is to close savings & checking accounts.. and if TWC's customers are one of those.. I think they're in trouble!!

heat84
Bit Torrent Apologist

join:2004-03-11
Fort Lauderdale, FL

Inflation or greed

When prices are raised, how do you know whether its because of inflation or greed? Inflation is a scam!
--
Bit Torrent is my DVR.

Dude111
An Awesome Dude
Premium
join:2003-08-04
USA
kudos:11

 

You dont but knowing how US companies are,I WOULD SAY ITS NOTHING BUT GREED!! (That and not wanting to hear customers bitch about them dropping networks so they instead raise prices to keep the garbage people want)

battleop

join:2005-09-28
00000

Re: Inflation or greed

It's greed. Well that's if you believe the "Analyst" that Karl is quoting.
Mr Matt

join:2008-01-29
Eustis, FL
kudos:1
Reviews:
·CenturyLink
·Comcast
·Embarq Now Centu..

The parasites will eventually have their day of reckoning!

How many of you reading this post subscribe to AT&T Long Distance as a separate service? I seriously doubt any of you do. I did but no longer do. Eventually the long distance companies had their day of reckoning. How many are there now. One most pleasant calls I made to AT&T Long distance was the day I told them to take their LD service and shove it up their ASS. I transferred my LD service to my local exchange carrier. If you told anyone ten years ago that local telephone service would eventually become obsolete they would laugh in your face. Now not so much. The CATV industry will eventually have their day of reckoning. Some new technology will become available making wired technology irrelevant. The real problem is with the content providers. They like a typical Four Year Old, cannot stop saying Gimme Gimme Gimme. Unless corrupt government lawmakers make changes to copyright laws consumers will continue to be gouged.

NYC26

@rr.com

Re: The parasites will eventually have their day of reckoning!

The new technology is called fiber all the way to your home and Verizon is wiring every major city they have a franchise agreement with. I already received a latter that my apartment building will be wired soon. TWC is simple an inferior product with 98% of their channels compressed.

tv n stuff

@cox.net

um they all do it

And so many peopel thought competition would bring down prices...noooo, its all about money and not just from the MSO's, DTV, Uverse, Etc.... it cost money to make money.

Bottom line if you want it, pay for it. if you dont then ,well dont. if you chose to keep it.. well than stop complaining. you have a choice... tv or not tv...lol

Phil
Rojo Sol
Premium
join:2001-06-11
Downers Grove, IL
kudos:2

Time Warner = Rip-Off

After to moving to a Time Warner only condo complex (thanks to a HOA contract), I have chosen to NOT give a penny to Time Warner for cable TV. Their prices were already a joke and now they want to raise them...

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4

Them pesky yacht payments

Don't get lower just because you lost video subs so you hike prices to cover them. if it weren't for sports and watching new shows the day they air, cord cutting would be way higher.

these companies need to stop acting like their shit don't stink.
--
Oh YES! let me drop everything i'm doing regardless of who it affects to deal with your petty little problem!
sandman_1

join:2011-04-23
11111

Cord Cutter

Just have TW HSI here. Cut the cord over a year ago and don't miss it. I can get all my content online through various sources and watch it on my 50" TV.

IowaMan
Premium
join:2008-08-21
Grinnell, IA

This is only the beginning

Look for Mediacom, Suddenlink, Comcast etc. to do the same

verolom

join:2002-03-23
Reston, VA

Cancel if you dislike

Stop bitching and moaning and cancel if you so dislike. You can watch antenna TV, listen to the radio, read a freaking book and gasp!... pay bills the good old-fashioned way, write and mail in a check.

But I bet most of you complainers out there like your Jersey Shore and Dexter BS and your torrent downloads of Top Gear and Battlestar Galactica and your all inclusive phone so that politicians can bug you over dinner time with robocalls and make you feel wanted and important.

Bah! All the agony! Spare me the nonsense! Do something useful for a change! Go rake some leaves! Plant a tree, chop another one for firewood!

Cordless

@g4.net

Re: Cancel if you dislike

Amen to that! I cancelled DirecTV since I was paying 65$ a month to watch 12 channels regularly. Now for what I paid for DirecTV I get phone w/unlimited long distance, internet and netflix streaming + DVD. I cut my entertainment/internet/communications bill in half compared to what I was paying before. And if those $#^$^@#$@ content providers jack up their prices so Netflix has to raise theirs too much more, I'll cancel that as well and they won't get ANY of my money!!
Heated Man

join:2009-06-18
Cleveland, OH
Amen. Either you want it or you don't. If it is not in your budget then don't get it. Simple.

kdwycha

join:2003-01-30
Riverview, FL
Reviews:
·Bright House

Blame The Broadcasters....

Everyone complains when cable/satellite rates rise yet congress allows broadcasters like ABC/ESPN, FOX/News Corp etc raise rates at an alarming rate. This is costing these companies a TON of money and do you really think companies are going to cut into their profits to cut you a break? No. It gets passed onto the customer. So if you don't like it write congress. They are the ones bribed by the broadcasters to allow these huge rate hikes.

mikedz4

join:2003-04-14
Weirton, WV

Re: Blame The Broadcasters....

the telecommunications act of 1996 was horrible. They said it would spur competition and in alot of areas where is this competition?
Congress needs to give the FCC the right to regulate cable rates again.

kdwycha

join:2003-01-30
Riverview, FL
Reviews:
·Bright House

Re: Blame The Broadcasters....

said by mikedz4:

the telecommunications act of 1996 was horrible. They said it would spur competition and in alot of areas where is this competition?
Congress needs to give the FCC the right to regulate cable rates again.

I normally do not stand up for big corporations but working for a satellite company I understand more about how this works. I used to think that cable/satellite companies raised rates just because they thought it would be fun and wanted to make a bit more money.

Regulating cable rates won't do anything but hurt the cable/sat companies. I mean I agree companies shouldn't be able to raise rates at will but what should also be regulated is the rates broadcasters can charge for services. Hell even OTA broadcasters charge outrageous rates for cable/satellite companies to carry their stations. You would figure these broadcasters would allow the companies to carry the stations for free or pay the cable/sat companies. They get more viewers which would mean more advertising dollars. Instead they get in bitter contract disputes over local broadcasts? Its all a big joke and prices are spinning way out of control.
AZinOH

join:2007-04-25
Swanton, OH
Reviews:
·Windstream

1 edit

Unhappy With Time Warner's Prices?

"And, she said, popular features that allow customers to start shows over or watch television shows on an iPad require money to develop."

If you need an iPad to watch tv, you are part of the problem.

If you can't get organized enough to either watch your show or record it and expect Time Warner to solve your problem, you are part of the problem.

If you can't live without video-on-demand, you are part of the problem.

If you expect every last niche and foreign channel to be available in HD, you are part of the problem.

If you expect Time Warner to do anything other than dream up costly new "features" of questionable value that they can claim are popular and use them as an excuse to continue raising prices, you are part of the problem.

The most expensive commodity in the world is CONVENIENCE. Once they get it in their heads that you will pay to have something made easier, they will start overcharging you for it...and if they have little or no competition-regulation, they will start gouging you and it will never end.

Dryvlyne
Far Beyond Driven
Premium
join:2004-08-30
Newark, OH

Trapped

I'd love nothing more than to leave TWC over the bi-annual rate hikes, but it's setup in such a way that I'm screwed either way. If I cancel or cutback on my service (I'm already in the lowest bundle tier) then I get penalized by having to pay more for Internet service. Add in the cost of another TV service on top of a jacked up TWC Internet bill and then I'm either paying roughly the same or more vs just taking the 4% hike up the a-hole!
--
In relative terms life is shorter than the blink of an eye. Remember that each and every day because in the end it's not about what you've done but how you've lived.
nycityny
Premium
join:2005-08-09
New York, NY

TV is good

I like watching television. I'll pay whatever increase comes my way.

I don't watch commercials since I have TiVo. Most channels are not commercials and I don't watch the ones that are. There is a lot from which to choose and I am happy with what is offered.

So shoot me.

(I'm with FIOS, not TW)

acid343211
Hallo lisa Aus Amerika
Premium
join:2001-08-31
Byron, GA

Cox customer

Am getting sick of these companies increasing costs and it's
Not warranted,if cox increases my bill I will cut back by what they will increase it by.

I already decreased my directv bill by 25%
--
Support
»www.minutemanproject.com/

astokes

join:2000-08-11
Bangor, ME

Re: Cox customer

Im dropping my TW phone and TV next month, getting DTV and will use my cellphone also thing of getting the new Magicjack+ seeing as it plugs directly to a router now.

i1me2ao
Premium
join:2001-03-03
TEXAS

Re: Cox customer

ooma works great..
Heated Man

join:2009-06-18
Cleveland, OH
They are in business to make money!!! It is called a business for a reason. It is not a charity. It is a simple concept.

acid343211
Hallo lisa Aus Amerika
Premium
join:2001-08-31
Byron, GA

Re: Cox customer

said by Heated Man:

They are in business to make money!!! It is called a business for a reason. It is not a charity. It is a simple concept.

However expect people to leave then.
--
Support
»www.minutemanproject.com/

i1me2ao
Premium
join:2001-03-03
TEXAS
yea but the cable industry for some reason has the appearance of pissing on all customers..
--
ummh union bad, ummh union bad, please tell me what else to regurgitate
Heated Man

join:2009-06-18
Cleveland, OH

I like it and will pay

I don't care. It is in my budget. Either you can afford it or you can't. Either you choose to afford it or you don't. Simple!!! I don't drive a Cadillac!! Why?? Cause it is not in my budget to do so. I could if I wanted though. This is a choice people. Why do people think they are entitled to free or low cost TV? Get over it and buy it or don't. Otherwise shut up!
XJakeX

join:2005-03-05
Coventry, RI

Don't shoot the messenger

The primary villian here is, and always has been, the TV networks and their corporate parents: GE, Viacom, Disney, News Corp and Time Warner TV (not Cable). That doesn't mean that your local cable and FIOS pushers are not in bed with the devils - they are.

But until the government steps in and ends the networks blatently anti trust practice of forced bunding in the deals they make with the re-brodacastsers, and allows real competition, you will continue to pay an ever increasing price to watch commericials. Unfortunately, our governent agencies have become more and more corrupt over the past 30 years, so we have to fend for ourselves.

There was a time when the over the air world lived with 3-5 channels and snow and multipath distortion in the picture. Those days ended with the change to digital broadcasting. Crystal clear reception, free HD, and more over the air channels than you think are out there for more people than you can imagine, with just a rooftop antenna. Find out what you can get over the air for free at antennaweb.org or tvfool.com. Then make the decision. Cut the cord if you can. That's the only thing the networks will understand.

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