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Time Warner Cuts Calif. Digital Rates

Time Warner Cable's Los Angeles and Orange County, Calif., cluster is bucking
the pricing trend.

Executives there have announced that they are cutting digital-tier rates.
They hope the price cut will encourage consumers to sample newly launched
video-on-demand and subscription-VOD services.

Current basic digital charges are $41.95 per month, and the new rate will be

In a prepared statement, Time Warner Cable Los Angeles president Tom Fiege
said subscribers can select from a wide range of premium services, some of which
are priced at just a few dollars more than they are currently spending for basic

The MSO is guaranteeing the new rate through the end of the year, but local
management expects digital rates to stay near or below those for analog even
after rate adjustments in 2003.