Is cable TV overpriced?

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steve_k

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Is cable TV overpriced, or am I just a tight-wad?

I spoke to the cable TV guy at Best Buy. He gave me a quote of $56 per month for the first year with an automatic bank deduction each month and $66 per month for the second year if I opted for the automatic bank debit. Without the automatic bank deductions, the rates would have been $10 higher per month. A two-year contract was required.

$56 and $66 per month for cable TV seems a bit high, doesn't it? These prices are for 210 channels and are limited to one television set.

I should also mention the salesperson's initial quote for the first year was $76 per month. As soon as he sensed my shock, he immediately lowered the price to $66 per month. When he saw I was still hesitant, he lowered the price another $10 per month with the automatic bank debit option. The price went from $76 per month to $56 per month in about twenty seconds.
 
Cable is ridiculously overpriced. Cable is long overdue to go a la carte and their reluctance to do so (not to mention greed) has started to cost them customers and profits. People will continue to drop cable in droves until a la carte is implemented.
 
The only thing cable is good for is live sports now. Anything else can easily be gotten from the network website/hulu/or netflix. Add in the occasional bittorrent for HBO or Showtime shows and your set.

If you have a PS3 or 360 you can stream it all by using PlayOn.
 
depends on how much tv you watch. if you want to download tv shows legally by paying for them they will set you back $2 for sd and $3 for hd. sure some of it can be streamed on the networks website for free or hulu. list the shows you watch on cable and multiply that by 4 weeks and then by $2 to get an average price per month. if that comes out lower than what you would pay for cable get the cable.
 
Cable is completely overpriced considering the fact that 90% of the provided channels will never be watched with any frequency and the ones you do watch will be flooded with almost as much commercial as there is actual programming. Until there's at least an a la carte option I'll never go back to cable.
 
People buy cable packages at Best Buy? And people actually sign two year contracts for cable? Contingent on auto-pay from your bank account? Seriously? fuck that.

Cable is over priced though, but sometimes its the only/best option for your geographical area. Usually you can get good introductory rates for your first year, then you can threaten to cancel in year 2.

If you have a reason to have a home phone that doesn't have to be a traditional land line, you can usually get a good bundle of cable/phone/internet for $100 a month and again, push the company around to keep the same rate, or better yet, threaten to cancel the phone portion of the bundle. Cable companies desperately want your phone business. I've seen them cave on that multiple times to keep your rate the same.
 
[quote name='looploop']Cable is completely overpriced considering the fact that 90% of the provided channels will never be watched with any frequency and the ones you do watch will be flooded with almost as much commercial as there is actual programming. Until there's at least an a la carte option I'll never go back to cable.[/QUOTE]
a la carte will probably cost more in the long run if all channels you want to watch think they can charge hbo prices. if i could just get all my sports channels for $30 a month i would totally do that and download everything else
 
I don't think it's overpriced, but I do wish it was a la carte. I doing watch sports at all. Until online options have captions, I also have no alternate.

These cable people aren't really rolling in money, imo. I think it does go back to the content creators for the prices.
 
[quote name='elessar123']
These cable people aren't really rolling in money, imo. [/QUOTE]

Comcast Cable, the country's largest cable provider, earned $866 million from January through March, 2010.

I consider that rolling in the money.

There is only one answer to this thread's question.
 
I sat down and did the math after my introductory rate @ DirecTV was up, and the way they nickle and dime you death with all the massive extra charges (want HD? Pay more. Want DVR? Pay more. Renting a box, like all of their customers? Pay more. HBO? Showtime? Sports pack? It goes on, and on, and on, and on.) and it came to something like a grand a year. $1000. Ye gods. No way I can afford such an extravagance at present.

I ditched immediately when my contract was up and went straight Netflix streaming on my PS3 and haven't looked back. $100 a year is much more my speed. And this is coming from someone who loves sports. But the fact of the matter is, most football games are on network television anyway, and you can get the MLB Extra Innings Package for a relative song, which packs in like 80 games a week for six months, for the price of a single month's cable bill.

I've driven _cars_, including a Civic I had back in school for several years, that cost much less than the average annual cable or satellite bill. I'll never go back until they stop gouging so hard and get a decent package, all-inclusive, in the $30 range.
 
Yes, which is why I don't have it. Plus 99% of the shit I'm interested in watching is free and legal to watch online on my own time. So what's the point?
 
Hulu Plus and Netflix for under 20 bucks a month streamed on the PS3 is infinitely superior to 60-70 a month for commercial induced cable. Plus if it's a movie, I prefer to have them in superior blu ray quality.
 
Cable isn't overpriced for one simple reason. You don't need it.

So if you pay for it, you're making the decision to pay whatever you pay.
 
[quote name='confoosious']Cable isn't overpriced for one simple reason. You don't need it. So if you pay for it, you're making the decision to pay whatever you pay.[/QUOTE]

Nope, sorry. Complete Logic fail. There's not a single thing in this world where that logic can be properly applied. ("Because you don't need it, it's not overpriced")
 
^ lol my cable bill is $170

Cable is overpriced because they have a monopoly and they aren't even providing the content. They must rake in millions.
 
[quote name='DestroVega']^ lol my cable bill is $170

Cable is overpriced because they have a monopoly and they aren't even providing the content. They must rake in millions.[/QUOTE]

Wow you should threaten to cancel and get it knocked down.

That having been said I pay 60/mo for nothing but hispeed internet.
 
[quote name='jimijumper']Comcast Cable, the country's largest cable provider, earned $866 million from January through March, 2010.

I consider that rolling in the money.

There is only one answer to this thread's question.[/QUOTE]

With those figures, with 48 million services sold (adding cable + internet + phone subscribers), they are getting about ~$1.50 a month per service. So yes, I stand by what I said that they're not really rolling in dough. Compared to an individual, they obviously are. Compared to huge corporations, not so much.
 
To say it is overpriced it a bit subjective. I don't have cable because it costs more than I am willing to pay. Plus, if I were to pay for a service, I would want to make sure I use it as much as possible. Living single, I don't see the point.

When I did have it, the only thing I really watched was ESPN, WWE, and Discovery Channel. I get enough free sports over the air or via radio now that I don't need ESPN anymore. I have lost interest in WWE tv programming, and I can get most Discovery Channel favorites ala carte via Xbox Live. Ever since I went back to over-the-air, I have enjoyed network shows such as NCIS, NCIS: LA, and The Mentalist. Not to mention channels like MeTV and AntennaTV that show great classic programming like Bonanza, The Three Stooges, Married with Children, etc.
 
Cable may be overpriced but for the most part that isn't the cable companies fault. Most of them generate a profit on internet and phone and either take a hit or make a small profit on cable customers.
 
cable is only overpriced if your too lazy to keep calling

i got 12 speed (fastest speed ) comcast has for 24.00 a month for a year normal i think is 60

I have full cable for 57 bucks per month
i have all movie channels hbo,showtime.cin,starz ect free for the last 2 years
free HD TV FREE DVR for the last 3 years
 
OP sounds like he was referring to Dish or DirectTV. That's NOT cable!

Rates vary with cable depending on the deal you sign up with. Currently I'm with Comcast and it's $110/mo. all fees taxes included. I'm getting the Triple Pack with a 12 month commitment.

Digital Preferred Cable with HD tier channels with HBO and Starz plus On Demand access [3 converter boxes] on 3 TVs and DVR box on 1 TV
Internet 30 Mbps Down / 5 Mbps UP
Digital Phone with Nationwide calling (+Canada/Mexico)
 
I work for a pretty big cable company, and I can promise you it's not the companys fault. Why do you think every provider goes through these black outs of local channels or Fox networks all the time? Because companies like Sinclair keep jacking the rates up. As Casey said earlier cable companies make their money off of HSD and Phone service. They do contracts now because if they're going to give you a discounted rate and free install (which costs around $150 just to roll a tech) they want to know you're gonna stay. For the price cable is better than satellite since you technically don't have to rent extra boxes for every room or share a box between 2 rooms like satellite. You could pay $65 a month and have 100 channels on any tv in your house as long as there's outlets. Plus video on demand is like Netflix built into your cable box.
 
In NYC the big cable companies have carved up the city like a turkey & each company does whatever it feels like because most people can't get DirectTV. They started installing Verizon Fios about 4 years ago but in few places. Still haven't reached my neighborhood yet.
 
[quote name='Kerig']Nope, sorry. Complete Logic fail. There's not a single thing in this world where that logic can be properly applied. ("Because you don't need it, it's not overpriced")[/QUOTE]

They have diabetes pumps for $5k. They are overpriced.

Cable isn't overpriced because you control demand for it.
 
http://mediamemo.allthingsd.com/files/2010/03/cable-sub-fees.png

To give you an idea of how much a channel costs the cable providers.
 
[quote name='slidecage']cable is only overpriced if your too lazy to keep calling

i got 12 speed (fastest speed ) comcast has for 24.00 a month for a year normal i think is 60

I have full cable for 57 bucks per month
i have all movie channels hbo,showtime.cin,starz ect free for the last 2 years
free HD TV FREE DVR for the last 3 years[/QUOTE]

That's pretty much why cable is overpriced. Because the majority of subscribers are subsidizing all the cheap fucks that call and pretend they're going to cancel to get a better deal. The provider still gets their money, they're not taking a loss.

And the thing is you're probably not getting a deal half the time. Likely the cost of that service probably went down years ago, you just didn't notice and the providers have the government so far in their pockets that they can do shady shit like NOT contact every subscriber and say "Hey, guess what? The cost of that service is cheaper now. Enjoy your savings!"

Then again, it's rare that a service gets cheaper. You just seem to keep paying more and getting nothing extra. Like what Netflix did recently. Probably coming up with that whole "Quickster" shit as a distraction so the price increase went relatively unnoticed. Hoping [correctly] that the average American would be more insulted having to visit two websites than to pay more money for the same subscription plan.
 
Other than sports, and the occasional syfy saturday night, we basically have no reason for cable. I probably watch 1-2% of the channels at most.
 
Having worked for a cable company, people with this mentality can go to hell. It was the largely uneducated/entitled masses that made my life so miserable for so long.

Like confoosius said, the reason the price is so high is because people are willing to pay it. I've had people literally in tears on the phone trying to get their cable reconnected due to non-payment. I've had people talk about how inflation or taxes don't apply to the cable industry. I've heard people moan and groan about how they're paying the equivalent of a car payment.

Here's the secret though, it's a non-essential service. It's not an increase on food, housing, taxes, gas, etc. It's literally mindless entertainment, which is why it commands a premium. "But people need phone service in case of an emergency!!!!111", which is already provided for under Universal Lifeline Assistance. Most anyone on some kind of government assistance can get phone service for half off (or less), without paying taxes too.

Cable is provided as a loss leader most times so they can stick it to you good on the internet, where most simpletons don't realize that the massive profits come from. The dirty little secret of traditional cable companies is that they love internet only or VOIP phone customers because the margins are insane without the risk of being caught at the balls by Viacom.

I never understood it while being a normal customer and certainly will never understand it after having actually worked for a cable provider. My life still has meaning and I am still thoroughly entertained even though I barely watch cable. I pay $45 a month for about 150 channels simply to have it there out of convenience. If I couldn't pay for it, OTA TV it is.
 
If it wasn't for my sports that I love. I would definately go cable free. All I need is ESPN, Comcast Sports Net, TNT, TBS and Versus. I wish that there weren't blackout restrictions so that I could use the MLB and NHL apps on my PS3 for my local Chicago teams. If that were the case, I would seriously consider droping cable.
 
When are we moving on to Cell phone service/bills?

[quote name='bigpimpin24']Definitely. All I need is Internet and I'm fine.[/QUOTE]

So agreed.
 
[quote name='Twilight Sparkle']I don't watch TV enough to make the price for cable worth it.[/QUOTE]

I would say the same, and that CNN is all I really "need." But CNN is basically just 24/7 speculation about the next President. Really, that's all it is. Obama gets elected and within a week all the news is "who's going to run in 2012?" and has been that way since then.

Seriously, cable is a wasteland for news junkies. The nightly news on broadcast television (on any channel) covers more in a halfhour than CNN does all week.

I really could go without cable if I had to. Probably will drop all of it soon enough.
 
[quote name='VipFREAK']When are we moving on to Cell phone service/bills?



So agreed.[/QUOTE]

I have a tracfone. :D Pay as I go. All I need it for is to make phone calls and the occasional text.
 
I think we're currently paying comcast $105 for digital cable. I download every show I want to watch for free, in HD and without commercials, and my own cable box hasn't been turned on in about a month. I don't watch sports, I don't watch news, and I never use the On Demand or radio stations they offer. We also don't have DVR since I'd never use it. All my tv viewing is downloaded and streamed off the 360/ps3 or Netflix.

My mother on the other hand usually only watches CBS/Ion/USA/HSN/QVC/JTV. It's for her to have access to the Jewelry TV that's really keeping us paying for cable.

She is wanting to look into that Roku box, since I already get Netflix, and we could possibly pay for Hulu, but without Jewelry TV I think she'd be totally lost, she watches that from like 5pm till her shows come on at 9pm, day in, day out.

And No, no tablet or laptop here, so she can't lay on her bed and watch JTV streamed.

Not sure what we're going to do, it's getting so the bill is more than we can afford, and more than I personally need. I never watch broadcast tv.
 
[quote name='RAMSTORIA']http://mediamemo.allthingsd.com/files/2010/03/cable-sub-fees.png

To give you an idea of how much a channel costs the cable providers.[/QUOTE]I decided to cut the chord when I saw something similar to this. I realized I was paying for a bunch of sports I never, ever watch. I canceled that day.[quote name='davo1224']
Like confoosius said, the reason the price is so high is because people are willing to pay it. I've had people literally in tears on the phone trying to get their cable reconnected due to non-payment. I've had people talk about how inflation or taxes don't apply to the cable industry.[/quote]Does inflation apply double to the cable industry? Is that why cable TV rates rose by double the inflation rate in the 1980s and 1990s?

It's a monopoly, that's what it is. In cities that allowed two cable companies to operate, rates fell 20 to 25 percent.

You can read all about the cable monopoly here: http://www.consumersunion.org/pdf/CFA103.pdf

I don't know where you got that cable TV was a loss leader. Maybe introductory pricing, but I don't buy that either.
 
You can watch a lot of network shows online for free. You can get a lot of basic HD channels for free with an antenna and a digital TV.

I pay 29.99 for internet and I don't even need the antenna, our basic cable feed (same as what the antenna pulls) never turned off.

Cable is a complete ripoff.
 
I'd totally do that if I wasn't a sports buff. Just can't get buy with online only for sports yet as most illegal streams suck in quality and you can't get all sports legally in high quality HD streams even by paying yet. Especially college sports.

Even worse for me as my ISP doesn't support ESPN3 streaming, and I can't switch without paying double for internet since the internet in my condo building is provided through the condo fees.
 
I have not had cable in 4+ years. With Netflix, and all the online options I could not justify paying $100+ a month for TV. I do pay for Netflix, but that is only $9 a month
It was kind of a no brainier.
 
Does inflation apply double to the cable industry? Is that why cable TV rates rose by double the inflation rate in the 1980s and 1990s?
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It's a luxury. I don't see why it would follow the same guidelines as essentials or even utilities.

It's a monopoly, that's what it is. In cities that allowed two cable companies to operate, rates fell 20 to 25 percent.
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It's not a monopoly because other choices exist. The correct term is oligopoly, and it's the exact same way the wireless industry used to be run. There are only a few major competitors and while they may try and take each other's business, they realize that they all have a part in maintaining status quo.

I don't know where you got that cable TV was a loss leader. Maybe introductory pricing, but I don't buy that either.
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Why do cable companies provide services like home phone and internet then, if they could just rape America blind on cable? Why do companies like Verizon and AT&T only provide IPTV services? Between infrastructure, labor costs, delinquent accounts, and paying out the content makers, there's really not much to be made. There's also the fact that it takes about three and a half years to break even on a standard digital receiver. That's if it doesn't become defective, get stolen, or damaged.
 
fuck yeah it does! I just got a roku 2 HD and spent the last three hours watching the 1st season of the wonder years. I keep telling my brah to dump DTV, but he won't listen :roll:
 
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