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I was reading the local paper this morning when I came across an article describing the decline of subscribers in the Pay TV industry. The pay tv industry essentially comprises of both satellite and cable providers. I remember reading about this last summer, and while the trend was identified then it certainly wasn’t as glaringly obvious as it is now. Up until the most recent quarter, new subscribers were still outweighing the one’s that unsubscribed. There is a lot of speculation as to the reasons for the decline, but a few are certain; households are consolidating, continuously high unemployment, and the availability of free tv on the internet. Uncertain economic times coupled with increasingly abundant options for cheaper forms of entertainment are creating a deadly mix for the pay tv industry.
I was sitting around relaxing a couple days ago when a toll free number popped up on my phone. Typically I just let those go to voicemail but since I was bored I figured I’d see who calling. Well it turned out that my cable company Brighthouse was calling with an offer on a new plan they have available that they thought would be ideal for me. For only $5 more a month I could triple my current internet speed, an additional DVR box, as well as a home phone. Of course I told them I had no need for a telephone, but their smooth talking ways convinced me that I didn’t have to use it and an additional $5 was well worth the other add ons they were offering. Then I got to thinking, and I asked them a simple question, “do you offer a plan cheaper than my current one? If so, what is it??” Well the lady on the phone reluctanty told me that they had a new plan that was $5 cheaper than my current one, with all the add ons that I wanted, minus the telephone that I didn’t want in the first place. She admitted that they were in the business to call and save people money. Can you believe that they actually told me that? Needless to say I opted for the cheaper plan that met my exact needs, surprise…surprise.
Why am I telling you this? Well I do like to vent about issues in my personal life, but I also like to use my own experiences to offer advice to my readers. Always be aware that there are deals to be had, especially with your cable and satellite providers. Don’t let them fool you, they are hurting and they want to retain your business. Threatening a switch to another company or even a simple phonecall questioning their current plan selection could save you money and provide you with additional features. I’m embarrassed that my savings only came because they called me and not the other way around. Also, make sure the service they provide is meeting your needs and not theirs. I still can’t believe they purposely tried to snow me into a phone package, but I do feel like I won a small victory that day. I have no sympathy for these companies as their profits begin to decline, their customer service is lacking, and their offerings are slim and outrageous. Pay-for-tv companies are essentially the same as a car dealership and offers can be bounced back and forth between them to score better deals. Just remember the most important lesson, don’t be afraid to speak up, you’ll be surprised at the savings you can accomplish with just five minutes of your time.
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I have to imagine that some of the subscriber based channels are really taking a hit these days. HBO or Showtime/Cinemax bundles are something like $15/month apiece. Granted, you get a lot of channels with each one, but that’s a lot of money, and as more and more options open up through the Internet, these are going to look all the less attractive. It’s kind of a catch-22 because people who like the original programming that they offer will just wait for them to come out on DVD, but the programming itself will suffer because fewer people will pay to watch it live.
We’re down to basic-basic cable. Essentially, just what we’d see with an antennae. We get a big enough discount on our internet by doing it this way that an antennae would cost us more, on a monthly basis.
The internet truly is revolutionary. I believe that anything that can have no physical delivery costs will eventually be given away for free online.
I have no sympathy for these companies, either. They are pricing themselves out of business and a competitor will eventually move in.
I think the next model that is coming will be customization. I definitely think that people are tired of paying for crap channels they don’t even watch. For example, with the Roku player, or other set top box, you get to choose what channels interest you. Most of them are free but some charge a fee. If that is already out, why would I pay 120 a month for 100 channels when I only want to watch about 20?
I hate it when companies call me trying to “save” me money. Like your quick response, though. I’ll have to remember that for the future. Thanks for the reminder. I’ve been meaning to call my service providers to see if there’s any cheaper plans out there.
I don’t have to pay for cable service as its subscribed by my association and we get to see for free.
I think you asked exactly the right question. The bundle is not perfect for everyone, and the package is too expensive. I’m seriously considering ditching our bundled plan and going for internet only. Our land-line is auseless, and we don’t watch that much TV. In fact, the HD channels are higher quality using an antenna…free to air!
Wow great tip! I guess the rise of youtube and netflix is pushing them out of business. Maybe they should create an internet business model instead
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I am glad you got a better deal for what you actually wanted.
We got rid of our cable almost a year ago. We still watch TV, we just watch it on the internet and we have Netflix. I thought it would be difficult, but it wasn’t too bad. We play a lot more video games though.
“…..don’t be afraid to speak up, you’ll be surprised at the savings you can accomplish with just five minutes of your time”
Wise words here, ones that absolutely agree with. This extends well beyond cable too!
Thank you for the advice. I’ve never questioned my cable bill, but I think I will call Comcast and try and figure things out to negotiate a better rate for my family.
I did more than threaten to switch to another cable company. I switched to another cable company for substantial savings. I expect my cable company to provide good value even before I call to threaten.
I have a friend that does all his television from the Internet. It is amazing to me, but I need to figure out his secrets. Think I am going to talk with him this weekend so I can dump this cable bill. It would be a serious victory for our household.
We don’t have cable. However, my dad has threatened the cable company that he would switch companies and they were happy to find him something that “worked” better for him. hahaha
Great tips – we have cable because our complex pays for it – but I agree that they’re in trouble with internet TV and Netflix!!
We recently changed from Comcast to EPB.
I am currently considering cutting my cable. Just too expensive
I am with FSYFA – I believe customization is coming. I have about 100 channels that I NEVER watch and didn’t actually even know about them for a long time lol
Yes, I agree. These companies ARE putting themselves out of business. Greed is never good! We just got a free upgrade for 3 months that doubled our channels to over 200, and I very seldom watch any of them except broadcast TV. When the 3-months is up, I am going to cancel.
I once had a sales rep come to my house and offer me unlimited long distance calls with a new plan from my phone company, while saying it would save me $5. I asked if it would save me $5 off of the bill I already pay, and he said, “Yes.” So I took the deal. But I’ve been burned by in-person sales reps before, so I decided to call and make sure I was getting what the rep said. Come to find out, they bundled me up in a new package that would actually cost more than my current bill, but they were knocking $5 off the regular price of that bundle. I immediately cancelled that order and told them to never send me a sales rep again. Moral of the story: always be careful and check up on what sales reps tell you.
Great job getting the better deal and not getting stuck w/ a landline you won’t use. This actually (thankfully) reminded me that my promo period with Comcast is ending soon and I must begin negotiations.
Lucky you. Those are great advice and I totally agree with you.