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Money Talks: When Basic Cable Profits Are Down, “Digital Economy Packages” from Comcast Turn Up

Phillip Dampier November 17, 2009 Comcast/Xfinity, Video No Comments

For years cable subscribers have lamented the “all or nothing” approach to cable packages.  Choosing only the channels you want to watch, and pay for, is out of the question.  But as the economic downturn drags on, and more consumers drop their cable service, Comcast has continued experimenting with “economy packages” consisting of fewer channels at a lower price.

First appearing a year ago in cities like Hartford, the reduced channel lineup works fine for many consumers who don’t watch sports networks or need access to niche networks.

For customers in the Twin Cities of Minneapolis and St. Paul, Comcast’s $29.99 Digital Economy package ($10 more if you do not subscribe to phone or broadband service) offers more than just the local stations in the broadcast basic package, but fewer channels than Comcast’s traditional standard Digital Starter tier, priced at $57.50.

Digital Economy includes all of the local television stations in the area, plus 20 mainstream basic cable channels familiar to any cable subscriber, including A&E, Cartoon Network, CNN, Discovery, Disney, Food Network, Fox News, Hallmark, History, Lifetime, USA and the Weather Channel, among others.

The channel selection trends towards being attractive to older subscribers, but hopes to be attractive to families as well.

It’s “educational, family-oriented channels,” Nick Kozel, Comcast’s vice president of marketing and sales in the Twin Cities told the Minneapolis Star-Tribune.

“This particular customer group typically likes them all, so what we’ve done is tailored what’s available to what a portion of the population really likes,” Kozel said.

The new package will be available in the Twin Cities market starting December 16 and includes one digital receiver and remote control.

Still, Twin Cities residents hope for the day when they can choose exactly the channels they want.

“Price each channel and let us pick the channels we want. These tiers are a joke to stick us with 50 channels we don’t want,” writes Derek.

“Having to buy a “package” is not consumer friendly. We want to choose and pay for only the channels that we watch, not the other 200 that are bundled in,” adds Clint.

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A Comcast subscriber explains the Digital Economy Package (3 minutes)

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