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Cable continues to sucker us

Posted May 27 2008, 02:40 PM by Kim Peterson
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The New York Times examines why we keep paying for cable, even though prices have risen 77% since 1996. Cable customers generally pay at least $60 a month, but only watch 13% of the channels available. Sounds like a rip off, doesn't it? But people accept the charges and continue to subscribe in growing numbers.

The key to cable's success has been bundling channels together instead of letting people pay just for the ones they watch, according to the Times. Cable companies say that unbundling those channels would give lots of cash to the most popular ones while the rest suffer.

You'd think our addiction to cable would make cable stocks a winning investment, but that hasn't been the case as the industry faces growing competition from telcos and the Internet. Comcast shares are down 20% from a year ago, and Cablevision shares have dropped 27%. 

I just downgraded to Comcast's basic cable. I don't need anything more, with iTunes, Netflix and sites like Hulu.com. The only thing I really miss is cable news, but I can watch that online as well. But many people don't want to watch video on their computer screens, and they don't want to deal with connecting their computers to the TV.

Tech companies are addressing this problem by developing set-top boxes that bring Internet videos to the television. Everyone from Apple to Netflix to Hewlett-Packard has a box in the works. But that part's easy. The real challenge is getting Hollywood to distribute all the shows that normally go to cable. When that happens, the cable industry might see its subscriber trends reverse.

Related reading:

How Verizon became the next Comcast

Cable companies eyeing nationwide wireless network 

AT&T goes after Comcast with digital TV service

DirecTV finally getting video on demand

Disney Channel goes free in Spain 

Comments

 

Yes, but if the cable companies unbundled their channels, let us pay for what we watch, and the other stations suffered, wouldn't they be forced to improve or drop out of the running?  It then would truly be a consumer-driven marketplace, and stations would be forced to reflect their viewers wants and needs.  Even better, give me some of my favorite shows that I can't get on Netflix, over the computer, and completely kill cable.

Since 1996 (12 years) we've seen improvements in cable offerings like OnDemand, HD programming, and digital DVR.  I can appreciate the rise in pricing (probably NOT adjusted for inflation).  I do wish they would dispense with the bundling scheme.  I pay for 150 channels, but 60 of them are in Spanish or Chinese, 20 of them are trying to sell me crap I don't want (home shopping networks), and 10 are religious or gospel channels.  Ugh...

I would assume and hoping that a lot of the crap channels are not charging cable companies or charging very little to carry the signal so they are thrown in packages to make it look good since there are overall more channels in a package but removingthem would not lower prices. Again, I said I assume and we all know what happens when doing that.

If cable is suckering us, why don't we all switch to dish?  The truth is for what I'm getting (HD, DVR, 4 TV's hooked up)  cable is 25% cheaper than the dish.

If someone would sell a high quality in-attic amplified antenna system I would

dump cable in a heartbeat. I think there is a real market for the next generation

of TV antenna.

My cable bill for a month is now what I paid for a year when I first subscribed to cable services. Soon, something is going to change.

I recently changed from cable to satellite.  I bundled the land line,internet and satellite together. I am happy with the satellite channels and service.  I like having all theses services on one bill. Thanks MSN for addressing some of the flaws of cable.

I am so sick and tired of being lied to by the cable companies. They want your business, tell you the price is locked in and that's all you're going to pay and then one day you receive a statement that says your internet or phone service pricing was for a limited time only. That just happened to me. I got on the phone, called the cable company and dropped every one of the pay channels (we had them all). We get 3 movies at a time through Netflix and watch what WE want to watch. I was tired of paying for premium service and seeing old reruns or the same show on different pay channels. I also started seeing a separate charge for a sports tier when I have no desire to watch all sports. This was supposed to be an "all in one" package that included everything for one low price. Yeah right!! In order to watch a premium channel - that you're already paying extra for, they charge you for a converter and remote. Without the converter you can't watch the premium channels. They have you coming and going!

when i first starting watching cable there were no commercials thats why we paid for it now we are stupid enough to pay and watch commercials!!!!!! like bruce sings 57 channels and there's nothing on!!!!!!!

And people wonder why I still have rabbit ears!

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