Post by Skaggs on Dec 1, 2004 14:48:38 GMT -5
Time Warner Cable to up rates for Basic with Standard service
By MARK McGUIRE, Staff writer
First published: Albany Times Union, Wednesday, December 1, 2004
Time Warner Cable subscribers who receive Basic with Standard service will see their rates go up on average 5 percent or more next year, roughly mirroring the annual increase seen over the past decade.
"(Costs for) just programming goes up 15 to 20 percent a year," said Time Warner Vice President Peter Taubkin, vice president of Time Warner's Albany division. He said that the rate increase is in line with annual trends.
Taubkin said the company is trying to achieve a uniform Basic with Standard rate of $45.35 across its geographic service areas.
The average increase for consumers will be between 5.5 and 5.7 percent. For example, in Albany, current rates for this service is $42.90 per month, meaning the tier's cost will increase 5.7 percent.
"That is a function of the increased costs this industry continues to incur," Taubkin said, citing programming and fuel as two examples. Taubkin could not, however, say how much of the increase would end up improving Time Warner's profits as opposed to simply defraying costs.
"There is no business that I'm aware of that doesn't try to operate to make a profit," he said.
Basic rates will be going up for some Time Warner customers. For example, Albany cable subscribers will see an increase of 10 cents, to $9.10. The biggest increase will be seen by North Country customers in and around Ticonderoga; bills there will go up from $11.50 to $12. Rates will remain flat in other areas, such as Saratoga, Rensselaer and Bethlehem.
But Digital Cable tier costs will go down for some services, up for others. Equipment costs (converters and remotes) will remain flat.
For example, the most basic of Digital tier packages will cost $55.95 -- a decrease of 35 cents. But a digital package with one premium channel will cost $66.95 per month in 2005, an increase of $3 (or 4.7 percent). The top-of-the-line DigiPic 4000 with Road Runner Internet service will cost $2 more, at $124.95 per month.
The rate changes will take effect in January.
At the same time, the cable company is adding several channels to different tiers:
Discovery Health will be available with Standard Service.
Biography Channel, History International and Nickelodeon's Games and Sports Network will be added to Digital Cable.
CNNfn is going out of business on Dec. 16. Time Warner will carry CNN International, airing it on Digital Ch. 525. In addition, Empire Sports will no longer be available on the Sports tier. A lack of original programming was cited by Time Warner for its departure.
By MARK McGUIRE, Staff writer
First published: Albany Times Union, Wednesday, December 1, 2004
Time Warner Cable subscribers who receive Basic with Standard service will see their rates go up on average 5 percent or more next year, roughly mirroring the annual increase seen over the past decade.
"(Costs for) just programming goes up 15 to 20 percent a year," said Time Warner Vice President Peter Taubkin, vice president of Time Warner's Albany division. He said that the rate increase is in line with annual trends.
Taubkin said the company is trying to achieve a uniform Basic with Standard rate of $45.35 across its geographic service areas.
The average increase for consumers will be between 5.5 and 5.7 percent. For example, in Albany, current rates for this service is $42.90 per month, meaning the tier's cost will increase 5.7 percent.
"That is a function of the increased costs this industry continues to incur," Taubkin said, citing programming and fuel as two examples. Taubkin could not, however, say how much of the increase would end up improving Time Warner's profits as opposed to simply defraying costs.
"There is no business that I'm aware of that doesn't try to operate to make a profit," he said.
Basic rates will be going up for some Time Warner customers. For example, Albany cable subscribers will see an increase of 10 cents, to $9.10. The biggest increase will be seen by North Country customers in and around Ticonderoga; bills there will go up from $11.50 to $12. Rates will remain flat in other areas, such as Saratoga, Rensselaer and Bethlehem.
But Digital Cable tier costs will go down for some services, up for others. Equipment costs (converters and remotes) will remain flat.
For example, the most basic of Digital tier packages will cost $55.95 -- a decrease of 35 cents. But a digital package with one premium channel will cost $66.95 per month in 2005, an increase of $3 (or 4.7 percent). The top-of-the-line DigiPic 4000 with Road Runner Internet service will cost $2 more, at $124.95 per month.
The rate changes will take effect in January.
At the same time, the cable company is adding several channels to different tiers:
Discovery Health will be available with Standard Service.
Biography Channel, History International and Nickelodeon's Games and Sports Network will be added to Digital Cable.
CNNfn is going out of business on Dec. 16. Time Warner will carry CNN International, airing it on Digital Ch. 525. In addition, Empire Sports will no longer be available on the Sports tier. A lack of original programming was cited by Time Warner for its departure.
