Cable Industry Shorts – February 2017

television-sony-en-casa-de-mis-padresHere are a few industry shorts, each not quite long enough to justify a full blog:

New York Takes on Charter. On February 1 the Attorney General of New York sued Time Warner Cable (which is now Charter Spectrum) for delivering inferior products that don’t match what was being advertised to customers.

The specific issue is that the majority of the cable modems provided to customers in the state are not capable of delivering the speeds being sold to customers. For example, in 2013 it was demonstrated that ¾ of the modems sold to supply 20 Mbps service were unable to process that much speed. And it appears that most of those modems still have not been upgraded. The lawsuit accuses the company of never notifying customers that they had inferior modems, and also of recycling inferior modems back to new data customers.

Charter says that the law suit isn’t needed because they have been making improvements since purchasing Time Warner. But the lawsuit alleges that the old practices are still widespread. The lawsuit is asking for significant refunds to affected customers.

Comcast Charging for Roku Boxes. In perhaps the best demonstration of why Comcast is rated so poorly by customers, Comcast says they will still charge customers if they use a Roku box to watch TV rather than a Comcast settop box.

Comcast currently has one of the highest settop box charges around at $9.95 per month, per box.  They also then charge $7.45 for each additional TV in the home using an ‘additional outlet charge.” Comcast hasn’t announced the rate for using a Roku box, but speculation is it will be at the $7.45 rate. This is clearly a case of a cable company charging for something for which they are providing zero value. Perhaps the company has already been emboldened by an FCC and Congress that say they will be reducing regulations.

For a customer to use the XFINITY TV app on a Roku box they must currently subscribe to Comcast cable TV and broadband service. They must have and pay for at least one settop box and also have a cablecard and a compatible IP gateway in the home.

Esquire Channel Disappearing. There is a lot of pressure by the big cable companies to cut back on the number of channels, and the expectations are that less popular networks are going to start disappearing.

The latest network that will vanish from cable line-ups is the Esquire channel. It’s a low-rated channel with content aimed at upscale men that is rated at 82 out of the 105 major cable networks. It was just launched in 2013 and had grown to 60 million subscribers. But last month AT&T and its DirecTV subsidiary decided to drop the channel, cutting 15 million subscribers. Charter is also considering dropping the channel, so NBC, the owner of Esquire, decided to kill the channel for cable systems. Some remnants of it will remain on-line.

Esquire joins the millennial channel Pivot and NBC’s Universal Sports as channels that disappeared in the last year. There are likely more to come and there are 23 networks with lower ratings than Esquire including Fox Business, Great American Country, Chiller and the Golf Channel.

Cable Companies Stop Sending Piracy Warnings. Just about every large cable company and telco has stopped forwarding messages to customers about piracy that were sent through the Copyright Alert System (CAS). These alerts were sent to customers who made illegal downloads of movies or music. The main purpose of these alerts was to warn customers that they were violating copyright laws. The content industry has always pressured ISPs to somehow punish habitual content pirates, but that has never happened to any significant degree.

Groups like the RIAA which were pushing ISPs for compliance have said they will look for an alternative. They said for now that they will probably back off from suing end user customers – a tactic that never seemed to make much difference. This is another case where technology outstripped the law. The CAS launched at the heyday of peer-to-peer file sharing, and while that still exists, it’s not the way that most copyrighted material is shared these days. We now live in a more nuanced world where there is copyrighted material on sites like YouTube sitting right next to mountains of non-copyrighted material, and it’s a lot harder to pinpoint copyright violations.

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