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Did I miss a section in Economics? Cable companies RAISING prices on customers!

18,316 Views | 134 Replies | Last: 5 yr ago by AgLA06
Zemira
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AG
I was an early adopter of cord cutting 10 years ago, but it was mainly because I was cheap and not wanting to spend money or cable when I first started working. I'm single and I live alone.

I originally had internet $45 and Netflix $10. Now 10 years later - internet $60 and Hulu $8 and Amazon Prime $10. Yes it's more expensive, but I would pay for Prime with or without streaming. I do turn off the Hulu when I am busy. I had Netflix a long time, but suspended my account. So I would also have the same internet package if I had cable. So realistically for me to am spending money on Hulu about 75% of the year that I wouldn't spend with cable. Also have antenna to pick up HD local channels.

I'm also single so no one else to entertain. I can go to my parents if I need to see ESPN and that is usually only Aggie Football.

My sister and brother-in-law are also cord cutters. They also come watch Aggie games at my parents if they aren't at the game. They have an 11 year old with a zillion activities so they are never home to watch TV live. They also like the ability to control what my nephew watches. He also doesn't as many commercials trying to get his parents to buy him stupid junk. For them it is cheaper (they don't have Hulu but have Netflix), less commercials and the ability to control what my nephew watches.

Now my parents have cable and my mom would never give it up. She is also retired and home more. She also loves the Hallmark Channel and unless we could easily stream that definitely no deal. They got a TV with built in streaming a few years ago so they do use that frequently as they have Prime and Netflix.

Also my parents don't mind if we invade their house to watch the game while they are at the game for Aggie Football. If I didn't have this option I might be tempted to get Sling or another streaming service to watch Aggie Football.

I think it really just depends on how much you are home, how much TV you watch and how many people are in your household as to whether you can get the content you want streaming for a reasonable price or if cable is cheaper.
YouBet
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AG
Well, I discovered we actually have about six months left on our DTV contract, so I'll be cancelling Hulu Live for now. Shucks.

Was going to unplug DTV this weekend and finally move on.
Aston04
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AG
Have UVerse 200 + internet for $105 a month. Also, subscribe to Netflix and Amazon (for the shipping mainly though).

At that price point, it's just not much cheaper to go strictly internet anyway (if add streaming service of cable). Also, if you have kids you may understand what a beating it can be for them to have almost infinite choices of what to watch. Sometimes it's nice to just place it on Disney channel if they are going to watch tv.
Iowaggie
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Called to cancel Directv because we really don't need it right now.
Did not get any offers to stay.

It's OK, because after 60 days, I'll probably just sign back up through Costco again
schwack schwack
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AG
Quote:

Called to cancel Directv because we really don't need it right now.

I got the lower offers via live chat, not sure why they wouldn't offer on a call. Maybe try that?
insulator_king
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AG
And am I the only one to not watch any video?

<shuffles back to hermitage....>
Buck Compton
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Just leaving this here for the thread.

https://variety.com/2019/digital/news/streaming-subscription-fatigue-us-consumers-deloitte-study-1203166046/

Basically what we were saying earlier in the thread - we're just going to end up with different bundles through different companies in the end. And they'll likely cost more when negotiated a la carte. Overall satisfaction is going down because of the number of choices.
TXAGBQ76
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AG
For about a year or so I have listened to discussions on sports radio shows where they say the next round of conference (and I sssume pro) contracts could get very interesting. Apple, YTTV, Amazon, etc. have said they are considering bidding.

So the model could get very ala carte based-i.e. you sign up for one service for SEC, another for ACC for pro football, etc.

As we are seeing with the ESPN, Disney, HBO, Showtime, Starr, CBS, etc. apps, this could be the start of an ala carte model that while we can pick and choose the stiff most relevant for us, it could actually end up costing more than what cord cutters are paying today and maybe even end up costing equivalent to cable/satellite costs today.

It will be interesting to watch.
Duncan Idaho
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A la carte TV is going to be one of those "I mean I know we said we wanted it, but now that it is here, we really kind of don't want it" type of things.
Buck Compton
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Duncan Idaho said:

A la carte TV is going to be one of those "I mean I know we said we wanted it, but now that it is hear, we really kind of don't want it" type of things.

Yep. Even the executives of these new services understand this. They're just using this market shift to grab their position as one of the future "bundlers" of channels.

I do think you will see some fat trimmed from a content perspective because of the a la carte movement (do we really need multiple MTV channels these days? Do we need six Nickelodeon channels?)...

The one positive that is going to come out of this is flexibility to move, etc. without have to wait from 8-12 for someone to come set your cable box up. But we're going to end up back at bundles.
aggiebq03+
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Duncan Idaho said:

A la carte TV is going to be one of those "I mean I know we said we wanted it, but now that it is here, we really kind of don't want it" type of things.


This will only be the case because it won't really be a la carte.
Duncan Idaho
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The fat being trimmed is part of the problem. A lot of those channels you never watched we're paying to be on the service and we're actually lowering your bill.

Not every channel is like ESPN that gets a vig for EVERY subscriber on a provider. I have literally never watched ESPN of my own free will but i had to pay $6/month for it. Those crappy little stations arent in the same boat. They pay to be on provider.

So trining the fat is going to end up killing the goose.
aggiebq03+
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If I could just pay $6/month for ESPN and nothing else I'd sure love that. In fact I'd go $20.
Duncan Idaho
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If they move to an a la carte model, you will have to pay $20+/month since ESPN won't have my $6 along with everyone else that doesn't fit their demo.
aggiebq03+
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I'm okay with that.
AgsMyDude
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AG
I WFH so high speed fiber provided by the company.

My entertainment costs:

* YouTube TV - $40
* Netflix - $13
* Spotify Premium (now includes hulu) - $9.99
* Amzn Prime (don't watch much content but use it for shipping, etc) - $9.91

Really only use the first 2 for watching TV, movies. It's got all the live sports I need, dvr is great being able to quickly watch from anywhere, and Disney content for the kids. We'll see how that goes when they launch their own content provider.

I'm a little spoiled with internet not on my dime, but I have zero reason to bring cable into the picture at this time.


I guess I need some gauges and neck tats.
AgLA06
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Buck Compton said:

Duncan Idaho said:

A la carte TV is going to be one of those "I mean I know we said we wanted it, but now that it is hear, we really kind of don't want it" type of things.

Yep. Even the executives of these new services understand this. They're just using this market shift to grab their position as one of the future "bundlers" of channels.

I do think you will see some fat trimmed from a content perspective because of the a la carte movement (do we really need multiple MTV channels these days? Do we need six Nickelodeon channels?)...

The one positive that is going to come out of this is flexibility to move, etc. without have to wait from 8-12 for someone to come set your cable box up. But we're going to end up back at bundles.


I haven't followed any of your arguments the entire thread. I didn't add any options when I cut the cord. I traded cable for Sling TV for less crap and less cost. Those saying they're afraid to cost cut because of added platform is the exact opposite of my experience. We already had Netflix and Amazon for the content. Over the air is integrated into the Sling TV guide.

We didn't want or watch the majority of the channels in the bundle. Cable companies knew this and separated out the good channels among increasing bundle options to force people to pay more and get channels they didn't want at a cost they didn't want to pay. If the cord cutting platforms are truly dumb enough to start going down the increased bundle and cost road it will be the death of them too. It's the exact reason people want and like alacarte.
aggolfer
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AG
uverse will be going away soon and pushing the dtv app for TV.
The Lost
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AgLA06 said:

Buck Compton said:

Duncan Idaho said:

A la carte TV is going to be one of those "I mean I know we said we wanted it, but now that it is hear, we really kind of don't want it" type of things.

Yep. Even the executives of these new services understand this. They're just using this market shift to grab their position as one of the future "bundlers" of channels.

I do think you will see some fat trimmed from a content perspective because of the a la carte movement (do we really need multiple MTV channels these days? Do we need six Nickelodeon channels?)...

The one positive that is going to come out of this is flexibility to move, etc. without have to wait from 8-12 for someone to come set your cable box up. But we're going to end up back at bundles.

We didn't want or watch the majority of the channels in the bundle. Cable companies knew this and separated out the good channels among increasing bundle options to force people to pay more and get channels they didn't want at a cost they didn't want to pay.
As someone who has worked in telcomm, you're blaming the wrong group. It's the content owners that force the bundles, not the cable companies. Which is why many of the cable companies have been focusing on acquiring content makers. The cable companies would love to change up the bundling so they were still a force. There's a reason Centurylink completely droppped their tv service, since they didn't own any content and it kept going up in price, they just dropped selling it period since there was no margin. Comcast/att are in better spots since they own content and can discount their own. Dish is just trying to survive. Sling (owned by dish) is literally grouped by who cares if they are with disney channels vs who doesn't.
insulator_king
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AG
I save all my money by not watching any TV. Instead, I waste my time reading Texags....
AustinTownHallAg
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AG
Hypothetical - Apple or Amazon buy SEC broadcast rights. $100/mo, all teams, all sports. Streamed from a platform included on your smart TV.

Do you say yes?
AgLA06
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Nope. That would be a horrible business decision. I get SEC Network, SEC +, and ESPN 3 as part of a Sling TV package for $40 month. I can't think of the last A&M game I wanted to see that wasn't televised.
AustinTownHallAg
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I wouldn't be surprised if Sling increases the price. It's likely seen as ancillary to cable revenues right now. As the number of Sling users grow, the broadcast rights will cost them more money.

A la cart is going to be painful for Sports fans.
I Drink Your Milkshake
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AG
Disclaimer: I am a cord cutter. Youtube TV, HBO Now, Netflix & Comcast Internet

But the one thing that baffles me about all this is how no one is weighing the opportunity cost of time, which is the greatest currency of all. Oh, you spent 5 hours renegotiating your two year cable subscription by $20/month? Oh, you got rid of cable and now manage five separate streaming services and payments? How convenient...

But still, it seems a lot of these folks are so happy to "stick it to the man" to save $50 a month when they could just opt not to pull through Starbucks twice a week.
IrishTxAggie
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AG
50x12x2 = 1200

I think 5 hours for 1200 in savings is worth it. Everything is set to autopay.
The Lost
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AustinTownHallAg said:

Hypothetical - Apple or Amazon buy SEC broadcast rights. $100/mo, all teams, all sports. Streamed from a platform included on your smart TV.

Do you say yes?
Change that to a year and assume they had more than sec and sure. I pay for mlb.tv now and have 0 problem with it.

The problem with this is you'd presumably still need out of conference games on other networks. If it was just like NFL game pass or whatever its called it could work.

I'd probably just then have hbo, mlb.tv, college plan, and maybe netflix. That'd be solid.
RK
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IrishTxAggie said:

50x12x2 = 1200

I think 5 hours for 1200 in savings is worth it. Everything is set to autopay.
while i am investigating alternatives to regular cable, it might be worth the 600/yr to not have to constantly remind my wife and children "if you want to watch this, then this....but if you want to watch that, then that"...then fix everything when they get button happy and F something up.
IrishTxAggie
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RK said:

IrishTxAggie said:

50x12x2 = 1200

I think 5 hours for 1200 in savings is worth it. Everything is set to autopay.
while i am investigating alternatives to regular cable, it might be worth the 600/yr to not have to constantly remind my wife and children "if you want to watch this, then this....but if you want to watch that, then that"...then fix everything when they get button happy and F something up.
My dog doesn't ask questions about the TV and he's the only other one in the house.
mavsfan4ever
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AgLA06 said:

Nope. That would be a horrible business decision. I get SEC Network, SEC +, and ESPN 3 as part of a Sling TV package for $40 month. I can't think of the last A&M game I wanted to see that wasn't televised.


In the hypothetical, this would no longer be an option. You either pay $100 per month or you won't be able to watch SEC games. Espn and the other channels you mention would no longer have any rights to broadcast ESPN.

So is $100 per month worth it to be able to watch sec football? If it was the only option, I guess I'd pay it. That's the scare of what the a la carte model could bring if amazon/apple or other players get into the bidding game for major sports.
IrishTxAggie
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mavsfan4ever said:

AgLA06 said:

Nope. That would be a horrible business decision. I get SEC Network, SEC +, and ESPN 3 as part of a Sling TV package for $40 month. I can't think of the last A&M game I wanted to see that wasn't televised.


In the hypothetical, this would no longer be an option. You either pay $100 per month or you won't be able to watch SEC games. Espn and the other channels you mention would no longer have any rights to broadcast ESPN.

So is $100 per month worth it to be able to watch sec football? If it was the only option, I guess I'd pay it. That's the scare of what the a la carte model could bring if amazon/apple or other players get into the bidding game for major sports.
I'd go to a lot more watch parties.
AgLA06
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RK said:

while i am investigating alternatives to regular cable, it might be worth the 600/yr to not have to constantly remind my wife and children "if you want to watch this, then this....but if you want to watch that, then that"...then fix everything when they get button happy and F something up.


She doesn't get to control the remote, but my 4 year old has it figured out. I don't think that's a time issue.
 
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