Wednesday, November 24, 2010

Time Warner Cable Launches New Plans

Last week, Time Warner announced a new low end tier of cable service, less cable channels, for a lower price. Some expensive licensed channels, ESPN and Disney, were named as not included in this low end tier. It is a valiant attempt at keeping a customer from defecting altogether. A downgrade is better than a disconnect.

At the same time, Time Warner has enhanced its upper end tier pricing as well. "Time Warner Cable will charge high-end customers $199.99 per month for a new "white glove" service option that it has dubbed Signature Home. According to a report in Bloomberg News Tuesday, Time Warner Cable is testing the service in Charlotte, N.C. and will roll it out nationally in the next few weeks." Will this new high end service package upsell some, perhaps it will simply offset the same number that downgrade and hence a break even for the company.

Kudos to Time Warner for at least being innovative in their pricing, given the needs of their customers. Whether, the response matches or exceeds the effort remains to be seen. How much marketing is done to push these new pricing tiers will show us how committed they really are to these programs. And to that we will just have to wait and see.

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