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Monday, January 04, 2010

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JDF

Time Warners "method" was a joke. What do those options mean? Get tough is the equivalent of the customer saying "give me less programming." Roll over is the equivalent of the customer saying "raise my rates." And what happened? Surprise, surprise!! They raised the rates. Time Warner is no different than Insight. Neither company is in any danger of financial collapse. They're getting a lot of money and they want to keep getting a lot of money, so they raise their rates whenever they can find a reason to justify it...

Steve

Time Warners methodology was, in this last case, quite simple. Send an Email to all existing RoadRunner customers telling them exactly what was happening. Simply put they created a poll asking if they should "get tough" or "roll over" and people chose "get tough". with each negotiation this is a simple and seemingly cost effective way to see what the people want.

JDF

I'm sorry. All these excuses do not explain why Insight now raises customer rate TWICE a year... I've already downgraded my service, and when my "anniversary rate increase" comes up around mid-year, I am going to have to seriously consider rolling my service over to WOW. If anything, that way when I eventually come back to Insight, I will be back on "new customer pricing" for a couple years... It's all so very offensive...

DM

Michael,

Remember that a-la-carte argument? A-la-carte would take away some of the bargaining power from both channel providers and channel distributors and give some bargaining power to the consumer. In effect, consumers with bargaining power provide an economic price control for carriage rates. Channel owners would need to do an economic analysis to determine the maximum-profit point at which they could price their channel.

I would like to think that channel providers do not like going through these re-negotiations for the reasons that you specified. However, why is it that an a-la-carte model is quickly dismissed by the industry? Is it because the channel providers would also lose some leverage over their customers and possibly some of their revenue?

At some point, a decision will have to be made as to which direction the industry wants to go. Perhaps it is time for the channel providers to give consumers what they really want, which is an a-la-carte option, or at least smaller channel bundles.

Steve Huff

I understand that networks raise their prices and therefore you must raise yours. But can you explain to me why you've raised the prices on set-top boxes?

I've had the same box for over 2 years and it's cost has gone up 51% on a fixed costs. I'm sure I've paid for that hardware probably twice now.

It's a simple digital box that doesn't even display the time, nor does it display the channel on the box, nor does it get HD channels, but you've jacked the price of it up. Did Motorola come to you and say, umm you know that box you already bought from us, well we want more money for it now.

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