AOL/TW Plans for $230 Monthly Cable Bill 352
Jonathan Campbell writes: "According to the article, subscribers will get over the sticker shock preferring convenience over price." Yay, it'll be so convenient having one company control my television, internet access and phone service. I can hardly wait.
Current Phone Bell (Score:2, Insightful)
$230 (Score:5, Insightful)
What additional services will they provide for $70?
A pay-per-view p0rn0 and a hooker?
AOL is smoking crack. Provide reliable desirable services first, then decide what you are able to charge for each one.
Betting? (Score:5, Insightful)
Isn't that the same bet that fired off the dot com craze?
And we all know how well that worked out.
Damn Right! (Score:2, Insightful)
Seriously, I would say I currently pay about $130/month total for cable modem/cable television (Adelphia, formerly @Home/Adelphia) and phone service... I can't think of *anything* that would justify my paying another $70-100 a month for the services I currently receive.
well at least they have there priorities straight (Score:1, Insightful)
I KNOW customer service, and QOS are towards the bottom of there list. I guess to eyes of this monolithic bastard they think they are the only company providing the things people want on there t.v. and computers. Well what can you expect from the guy who decided that colorized black and white movies were better somehow...
The only benefit I get from these people is a $10 a month discount in my r.r. bill because I am a student at USF (but in exchange they leach of off USF's network and not there own).
NTL (Score:2, Insightful)
Re:$230 (Score:2, Insightful)
a) the phone company will cut the price of DSL to retain customers and
b) the phone company will cut the price of local phone service even more aggressively to retain its cash cow customers.
Competition is a wonderful thing. The local phone companies have a lot of room to make pricing changes as they've mostly amoritized the cost of most of their infrastructure. Wonder how Wall Street will react to AOL/TW's moves after the first Verizon price cut in Manhattan? Or the first complaints about AOL/TW's local phone service?
One company to rule them all (Score:2, Insightful)
Don't forget that they also provide a lot of the contents on both TV and the Net.
One of the first things I was taught during my classes in mass-communication was to keep content-makers, content-owners, network-owners, network programmers and network-gatekeepers as separate as possible...
I think you can figure out yourself what happens if all those functions are in the hands of one MegaCorp.
Wrong tactics (Score:3, Insightful)
It seems that if you nickel&dime people, they will pay because the pain of each payment is little. But when you see a big nu mber like $230 dollars, that pain is much much greater than the individual smallers pains. And the individial smaller pains if you add them all up, wont feel like a $230 pain, if you get my meaning.
As many have already pointed out, this is great for competition,
and it may be a shock to the cable tv industry if large numbers of people balk at the large price increases.
Also, as many have noted before, we are at logger heads here, As computer tech gets cheaper and chearper, we get used to it, but the cable tv industry doesnt think like that, they beleive in always increases the price and this just might be the thing to shock them into dropping their prices.
anyway thanks
Re:$230 (Score:3, Insightful)
Where the real money will come from is by attempting to replace Blockbuster or your local video rental store. If they can charge $5 dollars per movie and the average family views 5 moview per month - there is an easy $25 dollars. Not much money - but over thousands of households - not hard to ignore.
Re:Hmm... (Score:4, Insightful)
The problem with this isn't just that the company can charge whatever it wants...the problem is that it can report what it wants to report and ignore what it wants to ignore. IOW, don't be surprised if the news coming out of the member companies -- CNN for instance -- starts to become blatantly biased.
Incidentally, when the hell is the FTC going to wake up and start giving a damn about anti-trust and consumer protection once again? First, you have AOLTW. Next, you have oil companies merging left and right to eventually form the next Standard Oil. (Were the companies that are merging -- Phillips/Conoco and Texaco/Chevron -- formed as a result of the Standard Oil breakup? If so, then there is NO WAY they should be allowed to merge. That would be just like allowing the broken-up pieces of Microsoft to merge back together should that breakup happen, which I unfortunately doubt it will.)
What I'd pay $230 for (Score:3, Insightful)
1.5mb down / 640k up, or thereabouts, with no usage caps
4-8 static IPs
a kick-ass news server
all ports open, no service-sniffing
the right to run servers and do whatever the hell I want with my bandwidth
priority tech support numbers to people who actually know what they're talking about
pricing refunds for downtime
ok, and throw in the basic cable and local phone. That's about what I'd expect for $230.
Even with all that, I don't think I'd ever trust a "provider" like AOL enough to put all my eggs in their basket.
AOL is going to lose out on this one (Score:5, Insightful)
Analogue phone line: $16/month
Basic Digital Cable: $45/month
Consumer grade DSL or CM: $50/month
All tolled that gives us about $111 per month, and yes I factored taxes in that. That makes the AOL package over twice as expensive. Now just for the sake of argument, let's assume they give you more than just basic service. In all reality we know that won't happen, but hey, we'll assume they give you something comparable to what I have:
Analogue phone line: $16/month
Extended Digital Cable: $60/month
Professional grade SDSL: $120/month
That's still only $196. To match the AOL price, I'd have to buy 3 premium networks per month (and with digital cable, that gives me about 10 channels per network). Plus, I really doubt they'll offer anything more than basic digital service and just normal CM service, making the first comparison more likely.
Personally, I think the idea of all-in-one providers is a good idea, provided there are several to choose from. However the reason it would be cool is that in theory it should save you money. Companies should be willing to charge you less overall in return for the fact that you buy more services form them. Cox already does this. You get a discount if you get both a cable modem and digital cable. It's been effective too, it encourages digital cable subscribers to get a CM instead of DSL, and encourages people with CMs and cable to upgrade to digital cable.
AOL is full of it if they think people are going to pay that much more for one provider service, espically since for most people it is probably going to be double the cost. If they want people to go for this they are going to need to make ti at the very least comparable and probably cheaper than getting all the services seperatly.
You actually pay THAT much? (Score:4, Insightful)
Local telephone (with all the services but voicemail - Verizon) - $60
Long distance (AT&T) - $50
Cable television (AT&T - local channels only) $14)
Alarm monitoring (ADT) $26
I pay $30 a month for my cable modem.
Local telephone service? I certianly don't pay $60 every month for it. Try $30, if that.
Long distance - are we talking about your calls, or the provider? I don't know of a provider on the planet that charges $50 just for their service - that's because they would be out of business so fast they would never be IN business.
Cable TV... wait... you said local? If You want local channels only (which defeats the primary purpose of cable television), I'd suggest you use an antenna. And that comes down to a cost of $0 per month.
As for the alarm monitoring, I have no idea, so I'l stick with your pricing on that. $26 per month.
If we add all that up, I only come up with a fine little sum of $86. Now, that's more like it. If you actually _NEED_ all that crap on your phone bill (460 way calling, or whatever it is now) then you can't possibly expect that everyone affected by this pricing scheme feels the same way. It's absurd to even assume a faction of that. Regardless, if people don't like the fees, they should learn to live with less - OR, get an organized complaint together and tell this monopolistic corporation to take a look at their business practices. I would NEVER commit to paying $230 per month for all that trash. I don't need half of it, and I sure would not want it from them.
Re:$230 (Score:2, Insightful)
Maybe they'll stop blocking inbound port 80 on my RoadRunner connection.
Seriously, if I'm going to pay that kind of money, I'd expect unrestricted Internet access.
Re:$230 (Score:5, Insightful)
Re:$230 (Score:5, Insightful)
He didn't say "24/7 FREE pay-per-view access", and neither did he say he would be using it 40-60 hours/month, as your number implies.
Where'd that $8/movie number come from? And how is this hypothetical buyer possibly going to have free time for this *and* 50 hours per month of pay-per-view?
For $100/month, you could go to a theater every time you felt like watching a movie, and watch it on much better equipment. Off by a factor of 3 or 4.
Off by a factor of five or more. Current cable providers fill the cable as it is already; you don't see them getting away with $200/month, do you?
Everyone knows that T1 prices are a joke. Also, the price you're quoting includes business-class service (which you added MORE cost on for later), non-trivial installation, and 100% bandwidth use (which no home user reaches), and is rediculous anyways. Compare against business-class uncapped DSL to be more reasonable.
"Ability to put up a server" and "ability to put up a 5-million-hit-a-day web server" are completely different things. Many DSL providers give you this privelege, so long as you don't abuse it, and you certainly don't need a T1 for it.
The only reason for 5 hours/month is if either (a) 4 of them are on hold, (b) the support is extremely incompetent, or (c) the service gives you too many problems in need of supporting. Either way, that's completely unacceptable for $65/hour, so your "reasonable estimate" of 5 hours/month is completely unreasonable.
Three-nines uptime is "business grade T1 service"? Add one more nine to that, maybe two for a higher price. 43 minutes downtime per month would be consumer-level standard if the DSL providers weren't so blatantly incompetent.
Actually, this is more like $0/month, plus a one-time bill for a fancy phone with an LCD. None of these actually cost the provider any substantial amount, and they're certainly not worth $100/month.
You added another $250 in rounding - and, of course, all the numbers you used to get there were bogus anyways.
$200 is low, but it's in the right ballpark. Your figure is rediculous; why it's at +5 is beyond me.
Re:AOL is going to lose out on this one (Score:3, Insightful)