Channeling Cable Wars for Savings

Cable and satellite providers are duking it out on air and online, flinging insults about everything from fake HD channels and poor customer service to overpriced plans and missing channels.

At heart, the mud-slinging is about grabbing market share, with providers trying to undercut one another to lure customers away from competitors. Fueling cable and satellite hate is the latest salvo in the provider wars and a key way companies try to get users to switch. Since prices have gone up only over the last several years, this battle is good for consumers who want to switch and take advantage of generous new-customer deals and for those who just want a price break from their current provider.

They ve clearly hit a nerve. Consumers have long been frustrated by expensive and confusing plans and poor customer service. Recently the frustration of long appointment windows and no-show technicians led New York City to require Time Warner Cable (TWC) and Cablevision (CVC) to offer consumers a credit equal to one month s bill if technicians arrive late. If you live in a city with different providers, ask for a credit or other freebies if you find yourself in the same situation. It's not uncommon for providers to offer a credit or free premium channels for a short period to compensate.

Of course, some of the claims providers make are nothing but static such as promises of fewer weather-related service problems, more NFL network coverage and better picture quality with a grain of salt, says Miro Copic, the principal at BottomLine Marketing, a consulting firm. For example, many ad campaigns tout top customer satisfaction ratings, but neglect to mention that the awards were regional or excluded certain types of providers, he says.

But if you want to get a good deal on cable, fiber optic or satellite service these days, this battle and the underlying price war is good for you.

For starters, it s spawned a handful of price comparison programs designed to help you cut through the clutter of claims and offers. WhiteFence offers a list of options in your area based on your address, and includes details on new-subscriber deals. A new tool from BillShrink also factors in preferred channels, number of household TVs and installation fees to hunt down the best plans that you re eligible for. Updates are sent regularly.

Using those tools to streamline selection also makes negotiating easier if you want to avoid the hassle of starting fresh with a new provider like four-hour windows for installation and long lines to return your old equipment. Even if you don t spot a better deal, it s worth calling your current provider to ask for a better rate, says Gail Cunningham, a spokeswoman for the National Federation for Credit Counseling.

There s a lot going on, and they want to keep your business, she says. Simply point out the better price or service you ve found, and ask if they can match it. No luck? Then ask what other incentives they can offer to keep you as a customer, says Cunningham.

Most consumers suffer from inertia, says Michael Belch, a marketing professor at San Diego State University. You have got to have something really good to get people to move. Playing on cable-hate can entice consumers who wouldn t move just for a new-subscriber deal.

INVESTOR CENTER

MARKETS:
Chart
TODAY
Portfolio Chart

RESEARCH STOCKS & FUNDS

  • How to Pay for a Wedding

    With most couples waiting to marry and three quarters of marriage partners living together first, many celebrants are paying at least part of their wedding bill.

  • How to Teach Kids about Money

    It’s never too early to start talking dollars...and sense.

  • How to Manage Your Grocery Bill

    Your grocery bill is your biggest weekly household expense, so keeping a lid on it will go far to stretch your dollar.

Answer Engine
Find Answers to Life's Challenges  

Find solutions to this and many other problems using

Answer Engine from SmartMoney. 

Copyright 2012 Dow Jones & Company, Inc. All Rights Reserved
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit
www.djreprints.com.