Cable subscribers face tough choice
GREENSBORO — Roll over or get tough?
That’s the question Time Warner Cable began asking its subscribers, including more than 400,000 in the Triad, on Wednesday.
The company has launched a campaign to target what it calls unfair price demands by programmers that can involve fee increases of more than 300 percent.
The campaign includes a Web site called rolloverorgettough.com, at which subscribers can vote on how Time Warner should proceed in contract negotiations with News Corp., which owns Fox and other programming providers.
When contracts expire, network owners have the right to pull their signals off the air.
In the case of News Corp., get tough means viewers may not be able to watch such shows as “The Simpsons,” “House,” “24,” “American Idol,” plus some NFL games.
Roll over will likely mean higher costs for subscribers.
“Our customers are really being held hostage over their favorite shows,” said Melissa Buscher, director of media relations for Time Warner in North Carolina. “We need (their) guidance. Should we pay up and raise our prices — and we are sensitive to that — or do we fight back and risk the networks taking away their programming?”
Buscher said Time Warner has several contracts coming up for renewal by the end of the year but refused to identify the companies involved.
However, The Wall Street Journal reported Wednesday the list includes News Corp., the Weather Channel and Sinclair Broadcast Group, which owns television stations. The article said network owners want to be fairly compensated.
Buscher had a different take.
“What makes it different this year is the weak advertising market,” she said. “Programmers are trying to make up revenue shortfalls by charging us more to carry their signals.”
Buscher said other cable and satellite companies and video distributors face the same problems.
“They’re caught between the consumer and the programming providers,” said Frank Donaldson, a faculty member in media studies at UNCG, referring to companies such as Time Warner.
“The programming providers, because they are producing new and original material, their costs are up and they are demanding higher subscriber fees.”
Ultimately, Donaldson said, customers can expect to see their rates rise.
“You pretty much know that’s what’s coming down the road,” he said. “That’s pretty much what we are headed for.”
But Buscher denied that Time Warner has mounted its campaign to prepare customers to shell out more for cable.
“We don’t want to raise your rates any more than we have to,” she said. “... That’s why we are asking customers what to do. If we roll over, they pay the price. If we get tough, they may lose their favorite show. We have tough choices to make.”
In addition to the new Web site, Time Warner’s campaign will include television and newspaper advertising.
But a visit to the site makes it clear how Time Warner wants subscribers to vote.
“It’s your money,” those who select “Roll Over” are told. “Instead of rolling over, we think it’s time to speak out against TV networks that boost their bottom line by squeezing TV viewers like you.” The site adds, “Are you sure you don’t want to Get Tough?”
Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com
Accompanying Photos
Photo Caption: Time Warner Cable office off Spring Garden Street in Greensboro.
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