This Is our Village

Tuesday, September 28, 2010

Let's NOT add HBO channels

I want to put my plug in for the Village’s NOT accepting Comcast’s latest offer for adding the HBO channels. I understand this will come up for vote this Friday (October 1) at the delegates meeting. The Executive Board by vote advises against it.

Comcast formerly offered the addition of eight HBO channels for $5.71 ($5.00 plus tax and fees) per month per unit. This was turned down twice by the delegate assembly. Now Comcast has sweetened the pot by saying they will give everyone the first five months of HBO free, plus throw in approximately $39,000 for the Village to use as it wishes.

This $39,000 looks good until you divide it by 7000, the approximate number of units in the Village, and realize it effectively amounts to only $5.57 per unit. Yes, the $39,000 can be used for anything, and people will say, “Boy, we sure could use it for this or for that.” But in terms of any further relief it would give to us re cable TV costs, it’s like Comcast is saying, “Okay, instead of giving you only the first five months of HBO free, we’ll give you six months.” This is a drop in the bucket when one considers that there are 9 years remaining in our 10-year Comcast contract.

Our 10-year contract provides for a 5% increase every year after the first year. Our monthly per-unit rate in 2010 was artificially low because when the 10-year contract was negotiated, we got a “signing bonus.” Some of this was set aside, on advice of attorney, in case we should need it to pay taxes later. A significant portion of the remainder was used to make the 2010 cable TV cost less for every unit. It was NOT used, spread out, to reduce the cost per unit for all 10 years of the contract.

If we sign onto the latest HBO offer, our cable TV cost per unit will undergo THREE increases in 2011: the increase from the artificially-low 2010 rate to the original, “true” 2010 rate; the HBO increase (after the “freebie” months); and the added five percent, which applies across the board to everything.

As pointed out at the Executive Board meeting, the old HBO channels ran the same movie for a month. This is so chintzy! So we get eight channels instead of three—of these, at least one is a Spanish channel, which is nice for the Spanish speaking but reduces the total to, at the most, seven channels for the English-only speaking.

As was further pointed out at the Executive Board meeting, our snowbirds (who constitute nearly half the Village) pay for cable TV year round, which is burden enough on them. Accepting the HBO offer will only add to their burden. When we vote, especially since most of them are not now here, I suggest we keep them in mind, and keep in mind also those who can barely keep their heads financially above water.

I think the Cable TV Committee did the best job it could in negotiating the new contract over a year ago and deserves our thanks. But I am for drawing the line at adding HBO. If I am wrong in any of the data presented here, please correct me. Thanks.

13 comments:

  1. Lanny:

    You are 100% correct. HBO is a
    losing proposition from Comcast.

    ReplyDelete
  2. agreed and nicely presented --just say NO

    ReplyDelete
  3. From the desk of
    Peter Amato

    The proper way to negoate with comcast

    Is to find out how much Comcast pays HBO to to add century village on.

    Then offer Comcast 50 cent per unit per month
    Does this sound cheep??
    .
    Multiply then Analise

    50 cents per month per unit is $6.00
    per year times 7,856 condos, means we would be giving comcast $47,136 per year in pure profit

    multiply this by 9 more years with comcast and we have added $424,224 of pure profit to comcasts bottom
    line.

    Why is comcast trying to so hard to bring use into HBO??

    I read something a while back that comcast pays HBO 56 cent per viewer

    The greater comcasts viewing audience the less they are paying HBO

    ReplyDelete
  4. The X Bd make the correct decision,
    in my opinion,which will be re-
    affirmed @ Friday's DA.
    (It has been voted down @ each pre-
    sentationa) However, HBO is still
    available, individually, for $15.00
    plus taxes & fees...which does not
    prevent anyone who wishes to have
    this added service, from doing so.

    ReplyDelete
  5. I have quite a few friends who are snow birds and were quited upset when we lost HBO. They have some of the best original dramas on TV and have won numerous emmys for those programs. We were paying extra for HBO and now the cost for all the HBO would really only amount to a couple of dollars more when you include what we were paying. When you pass many motels on the road in your travels, if you travel, most of them advertise HBO as an amenity. It could be a good selling point here in the village. We have shut off our fountains during the day when in fact we should have larger fountains on all the time as a beautification. As well the fountains help to circulate the water. We bemoan that condos sell so low but are unwilling to spend a few dollars to up the amenities. Yes times are tough.

    ReplyDelete
  6. So many great amenities-I think tennis courts and the clubs and bus and outings and theater beat out HBO - I would think HBO as a selling point would be way down there on the list not at the top ---as Bettie and others have pointed out - if you really feel in need of HBO you can order it and pay for it ---I think we have too many residents/owners barely squeaking by---so many delinquent in the HOA dues monthly, so many foreclosures ---how can we possibly consider adding to the burden of those who are struggling and know that there are more increases in just about everything waiting for us? Dave did the math for us several postings back and it's not just a few dollars. I do see your point Phyllis but I sure hope the vote is NO!

    ReplyDelete
  7. Hi all,

    FYI, Comcast has sweetened the pot yet again,

    1) Five months free HBO
    2) 12 months @ $4.00 per month.
    3) reverts to $5.00 per month for duration of contract.

    All costs subject to 15% taxes and fees.

    Offer commentces on1 January, 2011

    Bob Marshall will explain all of this at Delegate Assembly, October 1, 2010.

    Dave Israel

    ReplyDelete
  8. At $5.00 per month for the duration of the contract with NO increase sounds cheaper than going to a show. Right now people are paying $15.00+tax and that will definitely increase. 7 HBO and 1 Spanish HBO. Maybe the delegates should poll their people to get a true feeling before voting
    This is not much time to poll people, could this be extended???

    ReplyDelete
  9. Hold off the Vote till Dec., when more people are here. Have a special meeting if you have to. In the mean time it could be explained at the next three delegate meetings. This sounds like a great deal to me.
    Mike

    ReplyDelete
  10. I think if a vote were taken by each resident in season we would get a different tally than the no that the delegates vote. I would like to have a town hall meeting in January, if possible, and have a vote there to see what people want. I know there are people struggling in the village and there are people struggling everywhere. We were paying extra for 3 HBO stations what is the difference between what we paid last year and 8 HBO stations now?

    ReplyDelete
  11. PLEASE RE READ PARAGRAPHS:
    4,5,7 of the ORIGINAL POST, to
    come up with the BOTTOM LINE....
    In good conscience, we cannot
    impose an ADDITIONAL BURDEN ON
    ANYONE. THIS IS A MATTER OF CHOICE,
    NOT AN ABSOLUTE,such as the additional costs, we have NO choice
    in absorbing..your own Association's increases,which include UCO, as well as what each
    unit will directly pay to WPRF..
    If the majority at tomorrow's DA
    meeting agree to re-visit this
    issue, in January, so be it...
    However,I believe time is of the
    essence, this offer may no longer
    be on the table!

    ReplyDelete
  12. This has been a good discussion, I think. On the one hand, I can see the point that having HBO channels available through the month for $5.75 would be more than offset by seeing one movie during the month. On the other hand, I am frankly very leery about Comcast. These are the folks who blatantly removed channels, including one of three HBO channels, when we were under the old contract. They are the industry Goliath we were up against until David (aptly named) Israel and his team sought out better deals in a professional way.

    Comcast talks as though it is “last chance” for us. It seems to me it is THEY who are anxious for a deal. Personally, I am still against signing on for HBO with Comcast; but if we are seriously considering signing on, I would tell them, “We will only try you out for a year at a time. If you treat us well and give us good shows, not junk, and if you change the movies frequently enough to satisfy us, why, we’ll probably sign on for a second year. But we’re NOT going to be locked into a multi-year HBO contract with you when you are pulling the strings the way you are.”

    It’s like facing up to the used car dealer. Unless you are willing to pass up the car, and so draw a line in the sand, the saleman has you over a barrel.

    (How many metaphors were in this last sentence? Three?)

    ReplyDelete
  13. Phyllis- you are to be commended for your certification and your efforts to help residents get FPL accomodations and help fill out forms for residents who are in need to get subsidies ---let's not negate those savings for the needy by forcing them to pay for additional tv channels ---i don't think low real estate values in CV equate to absence of 8 HBO channels ---I guess I feel quite strongly about not burdening people with add'l cost that is non-essential as Bettie also indicates-
    let's face it - there are a lot of really senior people just squeaking by ---and they have lived here a long long time.

    ReplyDelete

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