Just last Christmas, the rate of consumers dropping cable and satellite hit its highest level ever. And streaming television continues strong growth.
But, as USA Today reports, Big Tech may be about to shoot itself in the foot, as it tries to introduce its customers to be the very thing they’re running from.
You know one of the biggest complaints about cable companies, other than their price, was the dozens and dozens of channels that you didn’t watch but were still forced to pay for. That’s called “bundling.”
The logic behind bundling
Do you want to watch ESPN? Of course you do. So you’ll have to take a bunch of Disney-related channels that you don’t really want. The money you pay for ESPN helps prop up other channels that don’t have nearly as many viewers. It’s a good model for business, but terrible for customers.
Cable bundling forces customers to buy channels they DON’T want, in order to get the few that DO. And it’s the driving force behind cord cutting.
BONUS: Have you cut the cord yet? Why not? Here are the 10 best streaming apps to cut the cord.
But suddenly, cord cutters are reporting an increase in their streaming TV costs, and — get ready for it — channel bundling.
That’s right. Internet streaming services Sling TV, DirecTV Now and PlayStation Vue are all increasing prices and forcing bundles of channels on to their customers. Isn’t this why we left cable in the first place?
So a word of caution to cable, and would be cable cutters: If you buy streaming bundles, but you still want Netflix, Amazon Prime, and Hulu, you’ll soon be racking up charges that are very close to your old monthly cable bill.
Here’s Kim’s Consumer Tech update podcast on this issue: