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Time Warner Cable lowers rates in L.A.

In an uncommon move, Time Warner Cable in Los Angeles and Orange County,
Calif., is lowering its subscriber rates, said Thomas Fiege, president of Time
Warner Cable in Los Angeles.

The company said it is lowering its prices to $39.95 per month for full basic cable
from $41.95 as a way to encourage customers to try its new video-on-demand and
subscription-VOD services.

The new services offer subscribers movies and other feature rentals 24 hours a
day, and they include VCR-like features such as play, stop, pause, fast-forward and

Time Warner Cable said it will maintain the new lower rates until at least
the end of next year, and it will keep them close to analog rates even after expected
annual rate adjustments occur at the beginning of next year.