Cox Rolls Out a Low-Cost Package
Posted by Steve Fravel on Sunday, January 29, 2012 · 
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As American consumers find themselves with less discretionary income and more video choices, large cable operators are seeking new ways to attract and retain subscribers. Last year, Time Warner Cable rolled out a $29.99 TV Essentials plan and Comcast soon followed with a $24.95 offering. It is worth noting that neither line-up includes ESPN, often the most expensive of the program networks.
This past week, Cox Cable followed suit and un-wrapped a new collection called TV Economy priced at $34.99. It also does not include ESPN. When comparing the low-cost packages with the typical expanded basic packages that might run in the $60 to $80 per month range, the multi-system operators may have created a small “bridge” to get them past the continued drain due to high consumer retail rates.
Looking ahead, one must wonder if consumers will be willing to forgo access to certain expensive programming in exchange for lower video bills. Time and continued package modification will tell.
Industry Demands Scrutiny of Verizon-Cable Agreements
Posted by Jesse Ward on Monday, January 23, 2012 · ·
Last week Comcast and Verizon Wireless announced that they will launch a new marketing program in Seattle and Portland, Ore., selling their respective services to the other’s customers.
This is the first marketing promotion under the new landmark partnership which was announced last month, whereby Verizon Wireless agreed to pay $3.6 billion to a consortium of cable providers for 122 advanced wireless services (AWS) spectrum licenses covering approximately 259 million people, or more than 85% of the U.S. population. Additionally, the cable companies and Verizon Wireless entered into a joint re-sale, marketing and technology development agreement. Separately, just a few days later, Verizon Wireless entered into an similar agreement with Cox Communications to purchase 20 MHz of AWS spectrum licenses covering 28 million POPs for $315 million. Read more
Fall Out from the SpectrumCo./Verizon Wireless Deal
Posted by Jesse Ward on Monday, December 12, 2011 · ·
The industry continues to experience fall-out from Verizon’s recently announced spectrum purchase and joint sales, technology and marketing partnership with the cable industry.
Comcast is moving quickly. While the spectrum sale will likely take up to 12 months to receive regulatory approval, Comcast Cable President Neil Smit announced last week that the cable company will begin bundling Verizon Wireless services in four markets in early 2012. ”The teams are already engaged; they are great commercial arrangements and we think we’ve put together great packages that combine the best of the various bundles,” Smit said, while speaking at a UBS investor conference. Read more
Verizon to Acquire Large Chunk of AWS Spectrum via Cable Companies
Posted by Jesse Ward on Monday, December 5, 2011 · ·
Verizon Wireless announced last Friday that it has agreed to pay $3.6 billion to a consortium of cable providers for 122 advanced wireless services (AWS) spectrum licenses covering approximately 259 million people, or more than 85% of the U.S. population.
As part of the purchase agreement with SpectrumCo LLC — a joint venture controlled by Comcast Corp. which includes Time Warner Cable, Inc. and Bright House Networks -– the cable companies will be able to re-sell Verizon Wireless services on a wholesale basis, adding wireless to their service bundles. For its part, Verizon Wireless also will be able to sell the cable companies’ services. It’s unclear at this time if Verizon will choose to market the cable companies’ wired services in areas where is also is the incumbent telco.
Additionally, the cable companies and Verizon Wireless said that they “have formed an innovation technology joint venture for the development of technology to better integrate wireline and wireless products and services.” Read more
Time Warner Cable to Buy Insight Communications
Posted by Jesse Ward on Monday, August 15, 2011 · ·
Time Warner Cable announced today that it has agreed to purchase Insight Communications for $3 billion in cash. The transaction, subject to customary closing conditions, will fortify Time Warner Cable’s mid-Eastern presence, adding more than 750,000 total subscribers in Indiana, Kentucky and Ohio.
Insight serves some 537,000 high-speed data subscribers, 679,000 video subscribers and 297,000 voice subscribers. The company also operates cn|2, a news and information network, which it delivers to a subset of its customers. Insight has invested in substantial infrastructure improvements, including digital conversions and DOCSIS 3.0 deployment. Read more
AMC Network in Play?
Posted by Steve Fravel on Friday, July 8, 2011 · ·
Spun off last week by Cablevision, the former Rainbow Media Holdings may be the acquisition target for one of several media companies. Rumor has it that Disney, News Corp. and Time-Warner each may have an interest in buying the newly renamed AMC Networks.
AMC Networks owns AMC, IFC, WE TV and the Sundance Channel. AMC also owns IFC Films and international programmer and TV program distribution unit. Speculation is that a deal for AMC Networks could run in the $3 billion range.
None of the organizations has commented publicly on the rumor. Of course if a deal is to go through it will provide the wining content provider with even more market power in retransmission consent negotiations.
Time Warner Cable to Acquire Rural Systems in Kentucky, Tennessee
Posted by Jesse Ward on Monday, June 13, 2011 · ·
Time Warner Cable announced this morning that it will acquire some systems from NewWave Communications. Specifically, Time Warner Cable plans to acquire 70,000 basic video subscribers, 42,000 Internet subscribers and 26,000 phone subscribers from NewWave in Kentucky and western Tennessee for $260 million in cash.
NewWave Communications was founded by its management team and Pamlico Capital in 2003 and provides communications services including high-speed data, cable television and telephone to smaller, rural communities in the Midwest. Headquartered in Sikeston, Mo., the cable operator will continue to serve more than 80,000 customers in Illinois, Indiana, Missouri and Arkansas after this transaction is closed. Read more