TV Options More Numerous, But Increasingly Expensive

Many consumers are old enough to remember when there were no movies on video and television was limited to three channels. And because the signals came in over the air, the picture was often "snowy" and subject to interference when planes flew over.

But in those days television was free, and consumers put up with the limitations because they didn't know anything better, and their entertainment didn't cost anything.

Costly choices

Today, of course, we have many ways to view TV shows and movies and many choices of programming. But these choices come at a cost.

For example, if you get your TV from cable, you pay for installation and monthly service. Special movie and sports packages are extra. Monthly charges for equipment are added onto your bill. While you have lots of program choices, it can get expensive.

By and large, complaints about cable TV companies focus on the business side of the transaction. But occasionally, consumers like May of Warrenville, Ill., report technical issues.

"For the past two years we had been subscribing to Comcast's basic television service," May told ConsumerAffairs.com. "About four months ago I decided to upgrade to a Comcast Digital Economy plan."

May said she chose the plan because, from the description, she was to get almost every channel expect the premium movie channels.

Disappearing channels

"About one month into service I randomly stopped receiving Nickelodeon, the History Channel, TLC & TBS, to name a few," she said. "When I called to complain they just said they took away those channels with no real explanation given."

May said she consoled herself in the fact that she still have on-demand service, and some of the shows on the cancelled networks were available there.

"Just a few weeks ago I realized they have now taken away our on-demand service for these channels since we 'are not subscribers.' Never once was this told to me," May said. "I'm tired of them making us pay more and more for less and less services."

An alternative to cable is satellite TV, and in the U.S. DIRECTV and Dish Network are competing providers. Both seem to draw their share of complaints, again, mostly because of business practices rather than programming choices.

You have to read the contract

A common theme with complaints about both companies is a discrepancy between what a representative of the company tells them and what is in fine print.

"My girlfriend and I signed up for DIRECTV in November 2009," Joseph, of Seattle, said. "We weren't staying in that apartment long and I asked if there was a contract because I knew we would be moving in less than a year. The phone representative assured me that there were not contracts and that I could cancel at any time."

But that wasn't the case, of course. The service agreement, is in fact, a contract, with a term of two years. Joseph said he didn't learn the truth until it was too late.

"When we called later we were told that no one had to tell us about it and it was in the fine print that we agreed to upon installation that we were in a 24 month contract," Joseph said.

Up, up and away

Donald, of Manitowoc, Wis., is a Dish Network subscriber who is upset because he says his bill seems to go up each month.

"I was promised no rate change for 12 months," he said.

For viewers who prefer to sit down and watch a movie, the run to the local video store to rent a DVD has become a thing of the past. Netflix has revolutionized that business by sending DVDs by mail and now, through streaming over the Internet.

The closest thing to a video store now is Red Box, vending machines in supermarkets and convenience stores that dispense DVDs. But because the boxes are automated, you have to hope there are no glitches with your transaction.

No humans

"I rented three movies from Redbox, and was charged $47.00 for movies that we had turned in two to three days after they were due, Danielle, of Wautaga, Tex., told ConsumerAffairs.com. "I spoke with the Customer Service Department and they stated that because I did not have the email set up to get a receipt of return, that they could not refund me back my money. I now have to go through my bank to battle Redbox for fees they clearly had no business charging me."

Netflix, meanwhile, remains a principal source of programming for consumers who do more of their viewing online.  These consumers can not only get movies from Netflix for $7.99 a month, but a growing number of TV shows are available as well. Earlier this month Lions Gate Entertainment announced all the episodes of it's popular Mad Men series would be available on Netflix.

“We don’t see Netflix as a competitor to cable, but rather as a supplement to cable,” Steve Swasey, Netflix VP for Corporate Communications, told ConsumerAffairs.com. “At $7.99 a month, you don’t really have to cut anything, except maybe one latte a month, to have Netflix.”

Net neutrality makes a difference

By pairing a Netflix subscription with other online sources of programming, consumers with high-speed Internet services have access to a wide array of programming. This programming costs little, as in the case of Netflix, or is even free, in the case of hulu.com, which streams episodes of popular TV shows.

At least, for now. Net neutrality allows Netflix and other content providers stream their bandwidth-rich content over the Internet without paying a fee to network owners, like Verizon and Comcast.

Swasey said Netflix supports proposals to safeguard Net neutrality but isn’t sure that the public grasps all the nuances of what is a pretty complex subject.

The bottom line, however, is consumers will count on Net neutrality going forward to provide low-cost access to TV via the Web, whether it’s a supplement – or an alternative – to traditional TV.