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AOL/TW Plans for $230 Monthly Cable Bill
Jonathan Campbell writes: "According to the article, subscribers will get over the sticker shock preferring convenience over price." Yay, it'll be so convenient having one company control my television, internet access and phone service. I can hardly wait.
I look, for instance, at the menu of services we consume here:
Cable Internet (AT&T) - $50
Local telephone (with all the services but voicemail - Verizon) - $60
Long distance (AT&T) - $50
Cable television (AT&T - local channels only) $14)
Alarm monitoring (ADT) $26
That's $200/month worth of services that are coming in on two wires to my house. And we don't get any of the more advanced cable services - just analog antenna service. If I want analog basic cable, it's another $20. If I want premium channels, the total bill hits that $230 mark and only goes up from there.
What I don't really do at this point, though, is take advantage of any service bundling yet - though AT&T has been pushing real hard in this area to get local and long distance bundled with my cable line. I haven't bitten yet but if I do it'll save me about $15/month. It's just not worth the trouble yet. So I use two wires instead of one.
I have no issue with the total price, so long as they save me money over the cost of buying all the services I need separately from separate vendors. I'll stick to multiple bills if there's no price reason to switch.
I guess the real interesting thing is how much communications takes out of the monthly budget. I look at that $200 figure I cited above, and that doesn't include our cell phone ($35), OmniSky ($29, but it's getting dumped this spring), and my Blackberry ($40, paid by my work). All together, that's a lot of money for communications service of one sort or another. And remember, my cable TV bill is tiny. A lot of people pay for premium services - equivalent to adding my OmniSky to the cable bill.
I wouldn't be surprised to see that the average household communications total bill comes close to that $200 mark already. If AOL starts offering things like security monitoring over their wire as well, the $230 is probably a reasonable goal.
-- Josh Turiel
"2. Do not eat iPod Shuffle."
What, besides lack of marketing killed it? Bundling all that together made customers realize they were paying two hundred bucks for telecommunications! Guess what'll happen when AOL/TW tries the same thing?
If you were to invest $230/month at a 10% annual rate, compounded annually, from the time you were 20 to the time you were 65, you'd have two million dollars in the bank.
So, which would you rather have: AOL's ultimate media package, or multiple millions in the bank when you retired?
b&
All but God can prove this sentence true.
These discussions about american cable and internet access prices always shock me. In comparison to my country (Canada) the US has a much higher population density. And therefore, for technologies like DSL and cable which require more hardware per distance from the central office, it should be LESS expensive to deploy these in the US in comparison to Canada since on average, the american companies should get more subscribers (and revenue) per amount of hardware:
For example (In Canada, monthly costs:)
Cable TV (deluxe package): CDN$44.34
DSL (worst case): CDN$24.95
Phone Service (Sprint): CDN$19.95
Total: CDN$89.24 or US$55.93 for DSL, long distance and cable TV.
Now to me, US$200+ for all that stuff is a rip-off in the extreme. I honestly don't know how Americans have put up with prices being pumped up this high and not revolting. These prices are certainly more than inflated and you are well justtified in complaining.
Note (1): I pay abour CDN$30/month for internet access, but that's because I don't live in an area with broadband coverage, and my package includes dual-dialup multilink and a shell account.
Note (2): The deluxe packages for Canadian satellite TV are more in the CDN$40/month range.