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Cable TV users just want a 20% discount, says report

February 2nd, 2010, 8:47 am · 37 Comments · posted by

TV service dealsA new report believes that 68 percent of cable TV customers would switch to a competing service for a  20 percent discount, according to Strategy Analytics, a market research firm.

The report “Digital TV Customer Satisfaction: US Survey Results” only surveyed 856 cable users, but there is other proof that consumers want a better value. Recent cable TV financial reports that continue to show a declining number of TV subscribers and customers dropping services like premium channels and video on demand. Meanwhile, Internet-TV services like AT&T U-verse and Verizon FiOS have been adding new customers.

“It underscores a trend we have been seeing for the past 18 months: a growing number of customers are beginning to question the value of a ‘traditional’ pay TV subscription in light of expanded “over-the-top” offerings, such as Hulu and Netflix,” said the study’s author Ben Piper, Director of the Strategy Analytics Multiplay Market Dynamics service.

Comparably, says the report, only 33 percent of people who subscribe to the newer Internet TV services also would drop their provider for a cheaper service.

Internet TV also had the highest number of satisfied customers, with 95 percent of respondents claiming to be “somewhat” or “very” satisfied. Comparably, 78 percent of satellite users were that satisfied while 67 percent cable users were.

In my own research, Verizon FiOS TV tends to be more expensive then cable but you do get a lot more features like HD channels and on-screen widgets. Satellite TV tends to be the cheapest. But everyone wants to save money.

Any thoughts from readers? I’ll be evaluating the costs of TV service in upcoming weeks. All input would be appreciated.

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 37 Comments

  • LGT says:

    I want the eSATA ports on my DVR unblocked.

  • Roger says:

    I had Time Warner, and was happy with the service, just unhappy with the number of HD channels. Switched to FIOS in July and am so happy I did. I pay about $20 less than I did with Time Warner, just because my pricing had gone up.

    The HD channel lineup is awesome, and you also get a lot more channels with FIOS than with cable, for about the same cost. I found that Verizon was very responsive with their customer service department and was on their game.

    The biggest downside to FIOS is that you HAVE to have a cable box for each TV. Where with cable, you can just plug the cable into as many TV’s as you want.

    I think cable would retain more customers if they just didn’t let their into prices expire. When the rates go up and you see the bill, the first thing you do is start shopping for another carrier.

  • BoogerBoy says:

    “Any thoughts from readers? I’ll be evaluating the costs of TV service in upcoming weeks. All input would be appreciated.”

    You already know what I think — 100% discount works for me! A few coat hangers and voilà — FREE HDTV. Woot!

    • Just set up roof-top antenna for my parents over the weekend. Separate UHF+VHF antennas plus poles, cables and free labor cost about $300. All channels coming in very clear. … For myself, just installed Netflix instant streaming on my PS3. Limited movie choices and not HD but good enough on-demand movie selection for $8.99/month. Also, I’ve been using PlayOn ($20-$40) on the PS3 to watch Hulu, YouTube, HGTV, Food Networks and a small handful of other cable channels — on my big TV. Who else is trying cheaper TV alternatives?

      • BoogerBoy says:

        “Just set up roof-top antenna for my parents over the weekend. Separate UHF+VHF antennas plus poles, cables and free labor cost about $300.”

        Excellent. You rock! (Although it sounds like you bought the ClearStream VHF and UHF antennas from Best Buy. Expensive.)

        DIY for the win.

        http://www.youtube.com/watch?v=EWQhlmJTMzw

        Just add a 1/4 wave length wire for hard-to-get VHF channels. The guys at ClearStream laugh at it, but it works. <$10.

      • BoogerBoy says:

        Speaking of Cox Internet service, if you have the lowest tier 1.5mbps, you can upgrade to 3mbps for only $2 more per month. Of course, they are NOT alerting existing customers because they are jerks. You have to call to get it.

    • OCresident says:

      When I moved into my neighborhood, I had to choose between Time Warner Cable and DirectTV. DirectTV had better offers so that’s what we picked. WARNING!! DO NOT SIGN UP WITH DIRECTTV!! We signed up for a promotional rate for 6 months (but due to lack of service, we were able to get that extended to 12 months). Turns out, after about 5 months and when the new year 2010 came around the corner, our next bill was 2x as much. DirectTV customer service, which btw, is one of the worst cus. svc. we had to experience. Almost every day for a month, we called to have to wait half hour or longer to speak to rep. When we finally got thru, it was explained to us that they had no record that our rate was for 12 months so we were going to be billed at the regular costs. So, we escalated the call the speak to a supervisor/manager to be only told that if we wanted to downgrade our service so we could pay for a lower price, we would have to cancel and the cancellation fee is $480. And, if we wanted to cancel, we would have to pay the $480 fee. *Obviously, we weren’t happy to hear that. We feel like we have been trapped.

      So, I did a little bit of research to find out that DirectTV has a huge class action claim against them right now bc of their unfair practices. Apparently, as soon as you call them and want their services, they will send someone out for installation. With that installation, you are agreeing to a full year of service. You don’t even have to sign a form or anything. After it’s been installed, they will send you a copy of the terms of the service agreement. In it, you will find the $480 cancellation fee. They don’t tell you this upfront or any time during the process of setting up a new account. If you cancel and don’t pay the fee, then they will either automatically charge it to your bank account (if on file), credit card (if on file), or report to the credit bureau. Please everyone…. if you are looking to change cable provider or sign up with one, do a clear research on the company, first, before just deciding based on price. BBB gives DirectTV a “F” rating. Wish I knew beforehand.

    • Cheaper-TV says:

      I couldn’t agree with you more. I cut my cable TV last month and started a blog about the experience. I have 3 kids and surprisingly enough, my broadcast TV / Netflix / Roku solution is working very well… they haven’t missed cable TV at all.

      http://www.cheaper-tv.com

      digital broadcast + internet tv = the end of cable tv.

  • chipmonk39 says:

    why is so difficult for the tv providers to understand what the subscribers want. I have charter tv, which has so many junk channels, that I ‘m stuck watching maybe 10-12 channels out of the 120 they claim are available. I would switch providers , except I’m in an area where choices are limited ( mountain area). I’m ready to cancel my service as soon as I can find another tv service. I would love to have Verizon Fios, but it’s not available up here in the mountains yet.

  • Bebe says:

    The only reason to have cable at all is for hockey and baseball. If I could get broadcasts of my local teams directly from MLB and NHL, I’d get rid of cable altogether.

  • gnet says:

    The greed cable companies reap what they sow. I was a Cox communication customer for 15 years, when I called them to remind them of that and to ask if they could lower my bill the nice lady on the other end of the phone said, “well, you do have a lot of services, I can remove some of them to lower your payment”. I told her I didn’t want any services removed just a lower payment. She replied, “I’m sorry sir”, when I asked for a supervisor I was told the same thing. I told them that was ridiculous, and to have a good day.

    Then in early December, AT&T came knocking on my door. I signed up as quickly as I could. I ordered the U400 package, with one DVR and two cable boxes for my other TV’s. I’m paying $20 less that I did with the Cox bundle and I didn’t have a cable box for the third TV. I am getting a bit slower internet speed with AT&T, but I love the fact I can watch any recorded program in any room in the house. And I just keep seeing that AT&T truck doing installs in my neighborhood everyday.

    When I went to return my Cox DVR and cable box at their RSM location, I was surprised on how accommodating Cox was when I showed up to return their cable boxes and all the discounts that suddenly popped up. When I told them no thank you, then they went to the hard sell. Telling me that everything I got (movie channels) was a promotional and that the price would go up. I told the gal if that was the case I’d cancel and go with Dish. She also mentioned that I was “locked” into a 2 year agreement, all lies, I have the contract I signed, she went on to day that she used to work for them and they had horrible customer service. Funny. Good buy Cox and hello AT&T with $300 cash cards that I’ve already received.

    Cox basically lost a customer for $20 a month. How much is that costing them now? Ha ha.

  • DiverDown says:

    COX blows. We’ve been with DirectTV for several years now after leaving COX. We’ve been saving money ever since.

  • Kathy says:

    Shoot, I’d trade for a better remote. Time Warner has he worst remote in the world

  • Tom says:

    I have been considering AT&T U-Verse. Does anyone know if their phone service is VOIP or an actual landline?

    • Rrene128 says:

      It’s VOIP but you can’t get it as a stand alone feature; you have to have a package and all of their pakcages start with TV, then build from there.

  • Rrene128 says:

    We had a Cox bundle for years but their rates kept creeping up. So I went to Vonage for 25.00 a month land line, and DirectTV ChoiceExtra (basic plus Fox sports) runs about 65.00 per month. We still use Cox for internet 45.00.

    $135.00 a month is the best I came up with.

  • Michelle says:

    Someone needs to send this report to COX as they prepare to raise our rates!!!

  • cwright says:

    Count me in as someone who’s tired of Cox’s price gouging and overabundance of useless channels. I live in Tustin, what is my alternative to switch to?

  • cwright says:

    I should note I have Cox for everything.. home ph, internet, tv.. is there another provider i can get all that from in Tustin? Maybe AT&T?

  • Janesheart says:

    I guess I am tired of getting nickled and dimed for every little change in technology. There are of course all the spanish speaking channels that I don’t want, and re-run after re-run of movies. The number of channels I use is far less than what they sell you. They all hang together….wish there was more competition and choice.

  • Phil A says:

    I can pick up NBC, CBS, and a couple of other stations in HD for free. I’m fine with that for the most part but I can’t pick up ABC7 here in Irvine and I really, really wanna watch LOST. But there’s no way I’m going to pay $60 a month for COX’s most basic cable package.

  • SCfool says:

    My wife and I quit watching television and we have been very happy. We wonder where we found the time to waste watching television. Occasionally we will watch a movie that we borrow from my grandmother. KILL YOUR TELEVISION

  • KATHY says:

    Those of you have VOIP, JUST REMEMBER THAT IF YOU OR IT ACCIDENTALLY DIALS 911, THE POLICE DEPT OR FIRE DEPT HAS NO WAY CALLING BACK TO MAKE SURE THAT YOUR O.K. IN HENCE, A VISIT FROM THE PD OR FD THEY WILL BE KNOCKING AT YOUR DOOR TO CONFIRM YOU ARE O.K.

    • Rrene128 says:

      Who accidentially calls 911 (don’t you want them showing up when you call) ; besides I would appreciate a visit from my friendly sheriffs dept. : )

    • Jeff says:

      If you have phone through your cable provider, it is Digital phone, not VoIP. E911 will still be able to call/find you.

      If you use SkyPe, then you are using VoIP.

  • Coxed says:

    Cox is now raising their rates, again.
    I just wish AT&T, or ANY ADSL service would get their lines into my Mission Viejo neighborhood. When I asked about it over ten years ago, they claimed they were putting in “mini-vaults” to get DSL to us. Never happened. We’re too far from the Central Office to get DSL, so we’re stuck with Cox or satellite. Satellite won’t get me broadband.

  • Jeff says:

    If you have Verizon FIOS in your area, just call your cable company and say you are looking to go to Verizon because they are less for the same services. You will get your bill lowered. They will lower it for about 12 months, then it will go up again. Just call again.

  • CUY says:

    I am with Cox too and they are charging too much. Now they are planning to increase…..I guess I will start changing to ATT U Verse.

  • RevGreg says:

    They’ve all just priced themselves out of anything other than a
    “broadcast” TV customer. What I WANT is an ala carte where I can get rid of all the junk channels and pick the ones I want without having to use a whole “package”

  • paul says:

    Like many, I will soon dump Cox. They are outrageous in so many ways, and more arrogant than AT&T, and Direct TV. None are reasonable by any measure. I believe TV should be seen as something of a public utility, at least insofar as providing local channels at no cost. Beyond that, they should be able to compete, but be more regulated than they are. As it is, they are practically printing money. I have tried them all, and have found Dish TV to be preferable, and Direct to be truely, outrageously arrogant, wth Cox closing in on them . All act as is they have a birthright to pillage and plunder, except for Dish. Good lucki

  • direct TV sucks says:

    I went with Direct TV over Cox because it was about 20% cheaper. I had a TV budget I had to stick with and Cox’s was more than I could afford.

    Well, since I originally called Direct TV on January 4th to set up service I’ve:

    Been on the phone with Direct TV for about 8 hours
    Been transferred about 15 times
    Had FOUR installation guys come out to try and install the box

    It was finally set up on Friday. They just sent the bill and it is about 40% more than what I was quoted on the phone. Oh, that price doesn’t kick in for another month.

    I wish I just went with Cox. It’s worth an extra 20% a month over this BS.

  • Howard says:

    The one thing that drives me crazy about Cox is the price creep. It just continues to go up a couple of dollars at a time. THIS HAS NOTHING TO DO WITH THE ANNOUNCED PRICE HIKES.

  • Alan Gellings says:

    One of the problems is channels don’t compete so the quality is going down. If people could choose the channels they want, the bad channels would go by the wayside.

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