Cable TV bills quadrupled in 10 years, but look what you now get
August 7th, 2009, 8:16 am · 38 Comments · posted by Tamara Chuang, a.k.a. The Gadgetress
Noted: An interesting report about the cable TV industry from the cable industry highlights the benefits to consumers. One early point: Instead of just a few dozen channels in 1998, the now-60 million cable customers get hundreds of channels, movies and TV shows on demand and phone and Internet service. Of course, the price has change too. Instead of the average cable subscriber paying $27/month in 1998, they pay approximately $100.
The report, prepared by the Microeconomic Consulting & Research Associates for the National Cable & Telecommunications Association, examined the industry’s response to policymakers and whether it benefited consumers.
Conclusion: “In sum, we find that consumers have benefited enormously from the cable industry’s investment in infrastructure and development of new digital services. In fact, we estimate that the total benefits to all U.S. consumers are now approaching $35 billion annually.”
Biased? It’s not supposed to be. Apparently, the cable industry and researchers cringe everytime the Federal Communications Commission says that video prices are rising to the detriment of consumers. This is a report to point out how much money the industry has invested in the technology and how much cable now has to offer.
By offering multiple services, like video and home phone, cable providers can improve the quality of all services and most importantly, charge a wee bit less. No doubt, cable Internet is so much better than dial-up or DSL. And it’s very convenient to get home phone service bundled with TV. Bundled savings are between $5 to $50. The report even pulls from Orange County’s Cox Communications to show the savings (these prices are from March 2009 and have changed):
Of course bundles make sense because it means a company is making more money per customer. It also means the company has a very committed customer. For a triple-service customer to leave, that means canceling a phone number and possibly an e-mail address and losing all his recorded videos.
So whether it’s cable companies offering generous promotions to move to bundles or consumers just want everything in one bill, these double and triple packages are a high growth area. The report does overlook one major issue: poor customer service. Being in my position where I hear frequently from consumers about their cable frustrations, it makes me wonder if people wouldn’t mind paying even more for cable services if service improved.
The report goes on. And on. And on. It loses me well before I reach this:
But as mentioned earlier, the report does conclude the cable industry’s investment in its product for the past decade has benefited consumers. Even as the industry is losing customers to competitors like Verizon FiOS and AT&T U-verse, the number of digital video and bundled subscribers is growing. And because of that, you can’t just compare price changes over the years. Feature changes need to be included in the mix. Decide for yourself by reading the full report HERE (a PDF) or just the press release.
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Choice… it’s an amazing equalizer. If I had a choice for cable providers, I’d give the COX competitor a chance.
I wish that I could choose what channels came in my cable package. I don’t need the church channel and many others. When is that going to happen?
Jill, that is a great point! If cable was À la carte we would be spending less and getting way more value. I am sure most of us just watch a handful of channels but we a force fed channels we do not want. I wanted the Golf Channel but was forced to buy other channels in that “Sports Tier” package I would never watch. So I didn’t buy the package and now the Golf Channel has one less person to advertise to.
Just a FYI…you can just get “limited basic” and not get “expanded basic” and still add a digital service tier or just a premium channel like HBO. You are not required to get “expanded basic”…something that is not advertised, just mentioned in small print.
Cable TV only presents the illusion of choice and diversity with the hundreds of channels offered. The reality is that all of those channels are owned by a very small number of corporations that are pushing the same agenda. The kicker is that TV viewers are paying to be advertised to. Would you pay to look at a billboard?
What a waste of time and money!
My monthly bill from Charter for online and basic cable “service” (and I use that term very loosely!) in Whittier has more than double in four years. I’m looking into FiOS — it couldn’t be any worse than Charter.
cable customers should cancel their current cable bundles. If we hit the cable companies hard (by not purchasing from them) they will listen and we all will get more for our money.
I like that- national cancel your cable month
There are about 20 channels I watch at any time since the rest are junk I wouldn’t watch. Where’s that package?
What a joke- I pay for everything and 4 DVR boxes- All I ever see are the same shows Armageddon… and a bunch of B and C rated films that are not even as good as commercials. There are millions of good shows at there, and with 900 channels I can never find anything to watch- you know they pay more for the premium shows. Bottom line, I am so close to just cancelling it all getting my news from the computer and joining the book of the month club. I give them an F-
IT IS SAD THAT CONGRESS DONT DO A DAMM THING.
if they had a hand in it, only the taxpayers would be flipping the bill…
I for one sure hate TV, but I am addicted to it just as many other americans…Personally, I wish the system would just crumble and we were left with the regular antenna (digital)Tv programming like we had eons ago..I can’t force myself out of the tv agenda, but I sure would be able to go along if it just crumbled(my will power is low)…
cable tv is a joke, pay for so many channels that are so worthless..
I too only watch about 20 channels because all the others are full of crap like the SyFy channel. Cox is ripping me off.
MOST OF THE CHANNELS YOU GET FREE ARE THE ONE YOU DON”T WANT TO WATCH SUCH AS RELIGIOUS,INFOMERCIAL,AND FOREIGNERS
Did the ocregister buy stock in cable TV??? This is the second article in two days about cable. Cable companies are the worst companies I have ever dealt with.
You folks should get your TV from the Net. Try services like Hulu & the stations websites. You can easily stream that content right to your TV for the whole family with NO commercials.
I got tired of Cox raising my rate every 6 months and got nothing for it.
I switched to AT&T U-Verse and couldn’t be happier. Nationwide Phone service, More Channels, (That I still don’t watch) and Internet that , even though it is rated slower than Cox, seems to work just the same or better.
Can someone answer this for me? I have tried with time warner & dish and yet they both say they don’t know. Why can’t I get the disney channel from Mexico here in Orange County. if it’s digital t.v./cable wouldn’t they just be able to wire it to me? Im willing to pay extra for it if it can be done. And no, i dont mean switching the language on the regular one since the spanish one has different shows. Does anyone know if this is possible?
Cable companies are a rip with poor service too, that’s why I use DirecTV. Besy quality and FANTASTIC customer service- and no, I don’t work for them. Just a subscriber and loyal customer for 12 years. No complaints- EVER!
And Lexusry, turn your caps lock off idiot, it’s not a 1993 chat board!
As soon as I can get a la carte channels from any cable provider I might agree that their costs aren’t growing too quickly. However, since they only off packages full of channels you do not want for the one that you do I think I’ll be skipping on cable.
Mind you, satellite and fiber aren’t necessarily better, but at least satellite isn’t a municipal monopoly and fiber now offers the cable companies some competition.
Pure and simple, to wit: “GREED!” I wonder, if they expect to pay Saint Peter off at the Pearly Gates? Yeah, RIGHT!
I broke the cable/Directv umbilical cord 3 years ago, and I have not looked back. Probably save like $3000 bucks altogether!!!
A contribution of my total savings that have given me piece of mind during this recent economic downturn……………..
If you live in the L.A. area, why would you need cable or satelite? With digital TV and all the additional HD channels offered, I get over 20 channels to watch now. And I don’t miss the talking heads on CNN and Fox either. I can listen to them via the internet if I really want their opinions. Cable and satelite companies no longer have their monopoly on TV viewers.
just cancel, I am and I hope millions do!
I would like to know why we’re all paying extra for HD content? When it was a new technology I could understand it but now it’s pretty much the standard wherever you go plus everything is broadcast via digital signal anyway. It’s kind of reminds me of the VCR vs the DVR. How many of you still use that old worn out tape?
I also agree with others about a channel by channel choice instead of the bundles as long as they didn’t rake us for having that option.
One last point… why can’t the cable companies get the NFL Ticket that’s exclusive to DirecTV? I think that’s a crime in itself for fair marketing.
Hey, just go have a few brews during game time. Your local bar/restaurant will be happy to serve you.
And yet will all those channels, there still is very little worth watching.
We had the opposite…terrible service from Directv. Broken receiver box? Buy new equipment. Want HD? Buy new equipment. No signal if there is even a breeze in Anaheim Hills? Sorry, can’t help you. We now have TW and I love it. We’ve burned out at least 4 boxes over the last couple of years (tee hee) and they replace them no questions asked. Great reception, cheap on demand rentals etc. If there is bad service, they refund the whole month. And to be honest, the price difference is negligible.
Went to Direct TV after being ripped off by COX for years. COX cable had an inferior signal and 90% of the channels were useless. It took COX about 90 days to issue my refund, only after calling three times to ask where it was. Most of their money seems to go to marketing and their “auditing crews” who go house to house trying to sell “upgrades.”
I would never ever go back to cable as they treated me poorly and always wanted to sell more products, never asking me how the service was, and the propaganda they used regarding potential satellite outage was a pile of BULL as I have yet to have an interruption in service, unlike COX which was ALWAYS going out . An no, I do NOT work for Direct TV, I just am much happier.
Had Time Warner since 1982, they kept misapplying the payments and blaming us for the errors, the rudest customer service people I ever encountered, Changed to Direct TV saved a huge amount by packaging with my DSL and Phone, and the service has been great. Would never to back to cable
i only have direct tv for NFL network. if it sprinkles no signal and how bout recording a tv show only to find out it didn’t record because the reciever was searching for signal
I would say your system is not installed correctly or you have equipment problems as I have NEVER had a problem no matter what the weather, where as COX cable was always going out.
I am seriously considering dropping cable altogether and just using the net…it’s all there in one form or another…techie714 is right.