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Comcast Moving Away from Customer Retention Discounts for Cable TV

Phillip Dampier February 11, 2019 Comcast/Xfinity, Consumer News Comments Off on Comcast Moving Away from Customer Retention Discounts for Cable TV

Despite the growing impact of cord-cutting, Comcast is following companies like Charter Spectrum by cutting back customer retention discounts that savvy subscribers negotiate to keep their cable bill reasonable. Despite losing more than 344,000 cable television customers in 2018, almost twice as many as it lost in 2017, Comcast has lost interest in cutting prices to keep customers.

Traditionally, customers using the word “cancel” with a customer service representative would quickly be offered deeply discounted service if they agreed to stay. Customers willing to stand their ground in tough negotiations with the cable company could win promotional pricing indefinitely, often saving several hundred dollars a year without losing channels or services. In 2016, after Charter Communications completed its merger with Time Warner Cable and Bright House Networks, Charter CEO Thomas Rutledge vowed to impose “pricing discipline” on Time Warner Cable’s “Turkish bazaar of promotional deals” after Charter took control of the company.

Rutledge called out the ‘madness’ of offering customers fire sale prices on internet and television service at a MoffettNathanson Media & Communications Summit in May 2017.

“Time Warner wanted to make a video number, and there were data packages that cost less if you took video than if you didn’t,” Rutledge said. “And a lot of those were churning out. And a lot of them were basic-only. So on the margin, at the end – in the last year, I think they were selling 40% of their connects as basic-only. [TWC had] 90,000 different promotional offers, many of them deeply discounted and piled on top of each other.”

Rutledge said Time Warner Cable represented the worst of an industry practice that gave unprecedented power to customers to get what they wanted, at least for awhile.

“You’d call in, bargain … And so there’s a lot of that out there. And they’re also exploding packages. Meaning, at the end of the term, they go back to full price,” Rutledge complained.

Rutledge called an end to negotiations by offering customers the opportunity of keeping their current package, but gradually raising it to a price that was often higher than Spectrum’s own non-negotiable packages and pricing. Regardless of what package a customer chose, it was a win for Charter because regular pricing ensured the company was making money either way.

Comcast has apparently been won over by Rutledge’s message to the industry and is now gradually moving in a similar direction.

Strauss

Matt Strauss, executive vice president of XFINITY Services, told Business Insider Comcast will now attempt to keep and win back its cord-cutting customers not by discounting prices, but by creating much smaller cable TV packages with fewer channels — a practice known as slimming down packages into “skinny bundles.” Comcast also plans to stop pushing customers into its “best value” triple-play packages of television, phone, and internet services, understanding many customers have no interest in some of those services.

“Our strategy is very focused on segmentation and getting more sophisticated in putting together the right video offering for the right customer at the right time in their life,” Strauss said, not by offering deep discounts on bloated packages (including a landline or hundreds of unwanted TV channels) that would reduce profitability.

Charter is already offering an ultra-slim, a-la-carte local TV package combining Music Choice with the customer’s pick of 10 national cable channels for $21.99 a month. The package is targeted to those with internet-only service and is accessed through a Roku set-top box. DVR service is available, if a customer was willing to pay a steep DVR service and box rental fee.

Comcast’s new strategy will market internet packages that include the added-cost option of a super-slim TV package of local channels and a handful of cable networks.

Strauss disagrees with some industry pundits who have suggested cable companies are planning to abandon selling cable television altogether in favor of internet-only service.

“We continue to be very bullish on video, but you’re just going to see us be more focused on how we go to market with video,” Strauss said.

Hulu Announces Pricing Changes: Basic Hulu Drops to $5.99, Cord-Cutting Package Sees $5 Rate Hike

Phillip Dampier January 23, 2019 Competition, Consumer News, Hulu, Online Video 1 Comment

Just days after Netflix announced its largest rate hike in the history of the streaming service, Hulu is following with its own announcement of “new pricing options” that will cost some customers less and others more.

“Over the past year, Hulu has added thousands of exclusive TV episodes and movies, launched nearly a dozen additional popular live TV channels – including The CW, Discovery Channel, TLC, Animal Planet and ABC News – and upgraded the technology platforms to support more devices and provide superior quality to our viewers,” Hulu announced on its Hulu Updates website. “With more than 85,000 episodes of on-demand television — more than any other U.S. streaming service — as well as thousands of movies and more than 60 popular live television channels, Hulu makes it easy for TV fans to get the most complete television experience. Today, we’re announcing updates to our pricing options (that will go into effect next month) to allow current and new subscribers to choose the best Hulu experience for them.”

New Rates

  • Hulu Basic (with commercials) drops $2 per month from $7.99 to $5.99.
  • Hulu (No Ads) remains $11.99 a month.
  • Hulu + Live TV, the entry-level cord-cutters package with more than 60 live channels and access to Hulu on-demand content with commercials increases $5 per month to $44.99.
  • Hulu (No Ads) + Live TV is also increasing $5 a month to $50.99 and features more than 60 live channels and Hulu’s on demand content with no commercials.

Hulu Basic had often been offered at $5.99 a month during special promotions, and the new lower price could attract more long-term subscribers. The increase in price for live television service comes as the result of increasing programming expenses and a desire to increase revenue. Hulu’s competitors have also been raising prices on packages featuring live networks and local channels.

Hulu’s new pricing will take effect on Feb. 26. Existing customers will see the price changes reflected in billing cycles beginning on or after Feb. 26.

Misleading Antenna Scams Are Back

Phillip Dampier July 10, 2018 Consumer News 189 Comments

A typical flat/mud flap style antenna.

Proliferating in online ads, newspapers, and sometimes on television, “revolutionary” new antennas are being advertised claiming to replace cable television while getting most (if not all) of the same channels over the air for free.

These misleading scams have been around for several years. We covered one well-funded ad campaign for “Clear Cast” back in 2011. That particular over-the-air antenna was sold through newspaper ads designed to mimic a newspaper story, with bold headlines like “New Invention … Gets Rid of Cable and Satellite TV Bills.” Those who spent upwards of $50 received a slightly dressed-up bow-tie antenna barely suitable to receive UHF TV stations and worked about as well as a similar antenna selling for $1.49.

With the first wave of misleading ads well behind us, marketers have had to work overtime to reinvent the wheel and convince people to spend $40-50 for what usually cost the company under $5 to manufacture.

Now, instead of the “Clear Cast” antenna, there is the “ClearView HDTV Antenna,” marketed by a company named True Signal. It’s hardly alone. The Octa Air, The Fox, and many others are nearly-identical “mud flap”-style antennas, with a tiny “antenna” embedded inside. The concept marginally works when the owner attaches it to a window, which gives it more signal to work with than an antenna placed in the corner of a room.

The ad copy on the manufacturer’s website is usually over the top but is nothing compared to some of the advertiser-sponsored editorials — “advertorials” published by bloggers, third party advertisers, and fly-by-night websites that exist primarily to cash in on sales commissions. More than a few of those stretch marketing claims into the stratosphere.

Goodsavingstips.com is designed to look like an online combination of a high-tech website and Consumer Reports. In fact, it is a website that reviews products, but has a financial incentive to write glowing reviews to encourage you to buy whatever they write about.

Goodsavingstips stretches the truth about the ClearView antenna more than a salt water taffy machine on the Atlantic City Boardwalk:

If you could stop paying for cable or satellite TV and still get all of your favorite TV channels in HD for FREE, would you do it? Millions of Americans are doing just that, thanks to a brand new rule in 2018 that allows certain regions access to free TV.

Thankfully, if you live in an area where this new rule went into effect, you no longer need to give your hard earned money away to the big cable companies. As a result, Americans are now cutting the cord on their cable companies in record numbers, saving them thousands of dollars.

Up until 2018, cable companies were allowed to “scramble” their channels so that the general public could not access them without paying for their service. However, that all changed starting in 2018, with the government ruling that TV signals are public property and “belong to the people”. Ever since this rule went into effect, the big cable companies are panicing [sic] because many Americans will no longer need to pay for cable or satellite tv to get their favorite channels in HD. As long as you live in a publicly broadcasted [sic] area, it is now possible to watch all of your favorite channels for free with a TV antenna.

Boastful claims about the TrueSignal antenna.

Several antenna companies market their antennas using similar language. There is, in fact, no 2018 “new rule” suddenly mandating your access to free TV. You have been able to watch free TV for decades. Notice the ad copy does not directly state you can receive cable and satellite channels over the air. It only states you can watch “all your favorite channels,” which in this case better be local TV stations and not networks like USA, TNT, CNN, etc. Consumers did not need a new rule to cut the cable TV cord. They just needed competition.

A map invites consumers to see if “free TV” is available in their state. Unsurprisingly, it is in all 50 states.

The rules regarding scrambling have only toughened against consumers over the last few years, not improved. Cable operators are now permitted to encrypt their entire TV lineup, even those channels customers used to watch using a built-in QAM tuner. The encryption allows cable companies to disconnect service from the office instead of dispatching a truck to physically disconnect the line going to your home or apartment.

However, not all TV antenna’s will work. In an attempt to block the public from picking up their TV signals, the cable companies are broadcasting their signals at very low frequencies since most antenna’s will not be able to pick them up. The trick is to get an antenna that can reliably pick up these low frequency signals, and up until now, there hasn’t been an antenna advanced enough to pick these signals up reliably. (There are other antenna’s out on the market, but they fail miserably in comparison to this one).

This is plainly false. Cable companies do not “broadcast” signals over the air. They send them through cables, hence the name “cable” television. Most cable systems also encrypt their digital lineups and no television antenna alone will decrypt them. If we were charitable, we could hazard a guess the reviewer is trying to suggest there are low-power television stations out there which need a better antenna to receive clearly, but these stations are independent of cable operators, don’t transmit on “very low frequencies,” and have been around for years.

Developed by a NASA engineer using military technology, the ClearView HDTV Antenna was just released this year so that it could specifically pick up these signals reliably and has been hailed as the only “super” HDTV antenna. It uses a discrete mud flap modern design which makes it the most reliable and technologically advanced antenna to hit the market today. It can pick up signals out to 60 miles with no problem (as well as the low frequency signals) to enable you to receive free crystal-clear HD channels.

Phillip Dampier: Debunking mode.

Misleading. In fact, the original design for the so-called “mud flap” antenna came from a Raleigh, N.C. based company Mohu. The company began as a small military contractor and the original intent of the antenna was not to receive free cable television. Mohu’s founder, David Buff, was working under a military contract to research new ways to counteract improvised explosive devices (IEDs) that were used against our armed forces in Iraq and parts of Afghanistan. He devised a low/no-profile antenna that closely resembled a mud flap attached to armored military vehicles that would jam the remote wireless signals used by insurgents to detonate roadside bombs. The military chose a different approach. So if the people selling these antennas were honest, they would have to say, “Developed by a military contractor but rejected by the military itself….”

Buff would later expand Mohu as a consumer antenna company, but suggests his proprietary design isn’t the result of the ‘space age’ antenna, but rather the signal amplifier attached to it. But that is hardly groundbreaking if an antenna cannot receive enough signal to amplify.

The “reviewer” promoting the ClearView antenna (who will earn a percentage from every sale that results from a click on his website) was amazed with the results:

What happened next was astonishing…

We turned the TV on and found ourselves staring back at an incredibly clear channel in HD. We kept flipping through channels and to our amazement, every channel was crystal clear. Best of all, we received almost all of the most popular channels you would get with cable.

All in all, we were able to access 68 channels in 1080 HD. It was as if we were getting free cable or satellite TV.

Now, before you cancel your cable or satellite subscription, it is important to note that there were a few channels that we could not get with the antenna. But in the end, we were able to receive about 85% of the same channels and more importantly, they were the most popular channels that people actually watch.

The verdict:If you want to save thousands of dollars and stop paying for cable or satellite tv, and don’t mind losing out on a few random channels you probably won’t even watch….

Up and coming technology: A wireless over the air antenna that receives signals from the best place in the house and then sends channels over an in-home Wi-Fi network.

We were not surprised it was deemed astonishing, considering the companies selling these antennas routinely buy sponsored space to promote their products on independent websites or compensate reviewers with a substantial commission if their reviews result in product sales. (Stop the Cap! does not accept sponsored posts or commissions to peddle products.)

The ClearView antenna did not do well for Amazon customers.

What the reviewer experienced was… over the air television, received through an antenna. Because most television stations now broadcast a digital signal, it is not surprising every channel would appear “crystal clear” because the alternative is typically no signal at all. The article continues to mislead readers, however, when it suggests buyers would “receive almost all of the most popular channels you would get with cable.” In fact, antenna users will only receive free, over the air local stations. Getting 68 over the air digital TV channels (and subchannels) is common only in the largest cities with multitudes of over the air stations. Many of those channels target ethnic minorities with foreign language programming, religious programming or home shopping. In most medium and smaller cities, expect 20-25 channels.

Right until the end, the reviewer was prepared to mislead his readers. The disclaimer itself fails to be completely forthcoming as well, telling prospective buyers there were only “a few” channels not receivable with the antenna. That could refer to over the air stations too weak to receive, but the surrounding context invites readers to believe those few channels are cable television networks. Telling people they will receive about 85% of the “same channels” (whatever that means) and “most channels that people actually watch” is true only if you exclude all cable television networks from that list.

The worst part of this is after spending $40 on the ClearView HDTV antenna, a whopping 52% of reviewers on Amazon.com gave it just one star. One reviewer compared it with a bent coat hanger serving as an improvised antenna and the coat hanger won. Most claimed it completely failed their expectations.

These antennas are made and marketed to a gullible public that has either forgotten about the basic principles of television antenna design or were too young to have ever used one. Many of the “high-tech” antennas we see sold these days are designed to work with UHF channels only, an important issue if one or more local stations still occupies VHF channels 2-13.

A more traditional RCA set-top antenna style common from the early 1970s – today. They work reasonably well and are inexpensive. The two vertical telescoping antennas are for VHF reception and the loop is tuned to receive UHF channels. You need an antenna capable of receiving both bands if you have stations on channels 2-13.

Indoor antennas are only suitable in you live relatively close to the transmitter. In most cases, residents of a city or inner ring suburb can usually get by with two telescoping rod antennas (“rabbit ears”) and a UHF antenna shaped into a small loop or bow tie design. Traditional set-top antennas often incorporate both. The telescoping antennas can be raised or lowered and rotate in various directions until you find the best reception. A UHF antenna usually can be turned to the right or left until best reception is achieved. These antennas are perfectly suitable and cost $20 or less. There are more modern antenna designs, some flat plastic or rubber sheets, others look like miniature replicas of an outdoor antenna mounted on the roof. In most cases, the design itself is what is “revolutionary.” None of these antennas perform miracles, but many are adequate. The key is finding the right direction to point them in or keeping them as close to a window as possible. You may need to find a different window, or change the height or positioning of the antenna to get the best reception.

If your reception remains poor, you need a roof or attic-mounted antenna, (remotely rotatable preferred over fixed-mounted). These antennas are mounted higher in a home, giving a less obstructed view to the transmitter tower, and capable of collecting weak signals that would be non-existent indoors. The biggest cost involved with these is often not the antenna but the installation. A high quality roof-mounted antenna will outperform any indoor antenna and will likely receive some stations from adjacent cities.

A relatively recent development is the “wireless antenna” which receives signals from an antenna placed in an area of the home which gets the best reception and transmits received TV channels over an in-home Wi-Fi network, making long antenna cable runs unnecessary. Unfortunately, reviews of many of these products are mixed and hint the technology has to undergo further development to make it less frustrating.

For now, cord-cutters with reception challenges may find the best solution is to subscribe to one of the streaming providers like DirecTV Now, YouTube TV, Hulu, etc. Be sure to verify which stations are available to you from each service before subscribing as they vary widely in each market.

If investing in a TV antenna, start small and inexpensive and consider trying out antennas available in local stores like Walmart, which can be more easily returned if they are unsuitable. If buying online, stick with a retailer like Amazon.com where independent reviews can help give you some insight into each antenna. Just be careful about overly glowing reviews. Fake/compensated reviews are a significant problem on online retailer websites, especially for unknown or unusual products or brands trying to break through in the market.

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