TV companies offer range of pricing

GRAND RAPIDS, Mich. (WOOD) - Good news for consumers: Cable, satellite and telco companies - telephone companies that offer TV service - are promoting a broader range of price packages to keep customers from defecting.

Subscription service companies are aware of the growing ability to download video content free off the Internet. Customers claim the quality and variety of content is just as good as the subscription services, which can cost upwards of $100 a month.

All the major networks allow viewers to download their most popular shows. Plus, there is a growing number of aggregate sites, such as Hulu and Fancast, that offer a wider range of content that is free and legal.

In addition, viewers with newer computers and TVs can download content in high definition, something that costs extra with subscription services.

Comcast and AT&T deny that subscribers are leaving.

They say research by Bernstein shows that subscriptions in the last quarter of 2008 grew by 441,000, up from 396,000 during the same time in 2007, and that viewers are driven to go online primarily for "time shifting," not to save money.

These companies also point out that a study by the Leitchman Research Group finds only 1 percent of adults view TV online.

Subscribers can get price breaks when they bundle services such as Internet, phone and TV. Comcast offers basic cable for $10 a month. Direct TV's lowest-priced package is $30 a month, and AT&T's is $49 per month.

AT&T's price package ranges from $49 to $174 a month.

The minimum fee for TV and Internet is $74.

The most expensive packages include faster-speed Internet and premiere sports and cable channels.

AT&T also bundles with wireless and local phone service. Pricing can be difficult to find. The company has offered a number of promotions to get customers to sign up for their new "Uverse" TV service. AT&T will install equipment for free, a service that takes at least four hours.

Comcast's minimum package with Internet and local phone service costs $49.90 a month. A package with basic channels and Internet costs $24.95 a month. Overall, Comcast offers nine pricing packages ranging from $10 to $79.80.

Subscription companies make money by selling customers more than they need.

Customers often have to sign up for expensive packages just to get one or two of their favorite channels. The companies have resisted efforts by consumer advocates and regulators to offer "a la carte" pricing. By getting subscribers to buy multiple channels, they can offset some of the costs of higher-priced networks.

Subscription prices reflect the fees networks charge to carry their signal. Sport networks can be some of the priciest.

In the meantime, viewers are finding more and more sites to download free content. They include Hulu, Move Networks, Fancast, Mevio, My Damn Channel, Revision 3, Itunes, Amazon onDemand, TV.com, Zillion TV, Netflicks "Watch Now", Blockbuster onDemand and Justin TV.

As for movies, some customers find they can buy movie DVDs for $5 a piece at their local video store. They can keep them for their libraries or resell them.