TV services finally give you more choices

Several years ago, Red Bank resident Doug Winning asked Verizon for a break.

He and his kids didn't watch much television. Just cartoons, like "SpongeBob SquarePants" on Nickelodeon. Was there something they could do about his high bill? "It was a huge expense," Winning said. "I tried to see what I could do about having the cost reduced or having certain channels limited."

It didn't work. So Winning cut his television service down to just about nothing and disconnected the set-top box. Today he and his sons, now teenagers, watch video content through streaming services such as Netflix, Hulu, Amazon Instant Video and YouTube.

If he had called Verizon last week with the same question, he would have received a different answer. And it might have kept a customer.

More flexibility

Consumers, especially millennials, are moving away from big high-priced cable packages with hundreds of channels, many of which they don't watch. Instead, there's demand for more customizable and flexible choices, said Greg Ireland, an analyst with IDC, a consulting firm.

At the same time, online streaming services, such as Netflix and Amazon Instant Video, are growing. Viewers are opting to watch video programs on an Apple TV, video-game consoles or through new services such as Dish Network's Sling TV. Recently, HBO started HBO Now, a streaming service.

All these of services allow you to watch programs whenever you want, breaking the confines of cable channels and program times.

It has created a group of customers, who like Winning, are cord cutters, and so-called cord shavers who trim their cable service.

Winning watches Netflix on his family's Wii U gaming console or on Google Chromecast, using a dongle (a small piece of computer hardware) that allows you to stream video from your smartphone onto your TV.

"We watch it when we want to see it, but we don't turn the TV and just flip channels until we find something that interests us," Winning said.

Companies are forced to respond.

Cablevision acts

On Thursday, Cablevision unveiled what it's calling a "cord cutter" package." While it's not a video service, it comes with a free digital antenna to receive over-the-air channels and high-speed Internet access for streaming video. The cost is $44.90 per month for the first year.

"Our new 'cord cutter' packages take a modern approach to traditional triple-product bundles and provide real alternatives that fit new consumer lifestyles," said Kristin Dolan, Cablevision's chief operating officer, in a statement.

Comcast didn't have a comment for this story, but it has offered a lower priced package called Internet Plus, which has limited basic channels, including local broadcast stations, high speed Internet access, and HBO for a starting price of $44.99 per month.

Earlier last week, Verizon said its new packages, called FiOS Custom TV, are meant to give customers "more freedom and flexibility to chose the perfect TV plan."

It enables customers to streamline their services to include only channels from genres they want. Want Disney Channel and FX, but not ESPN and MTV? No problem.

On top 35 channels, including broadcast stations and others such as CNN and Food Network, users can chose two "channel packs" from among seven genres: lifestyle, entertainment, news and info, pop culture, kids, sports and sports plus. The price starts at $54.99.

So is this a la carte service, where you get to pick only the channels you want to watch?

No.

'First step'

"One could say this could be Verizon's first step toward true a la carte, but it is still very far from a la carte," said Ireland of IDC. "While we have moved away from the bigger packages, they still require you to take a bundle of channels."

For those who want to chose every channel, FiOS Custom TV is not the answer.

"I think it's a good idea if the customer can get what they want in choosing one or two bundles," telecommunications analyst Jeff Kagan said. "If a customer has to choose five or six bundles to get what they want, it sorts of takes away the benefit."

(The jury's out on whether Verizon customers actually will save big dollars. USA Today's Jefferson Graham figured out he would save about $5 on his bill.)

There are some things that may stand in the way of true a la carte service. Programmers, the large companies that own the channels, don't support it.

Why? They make money off advertising, Ireland said. "You only get advertising dollars if someone is watching" or subscribing, he said.

They also make licensing deals with cable providers, seeking to bundle smaller, less popular channels, with bigger channels, to increase viewership and carriage fees. They are constructed in a way to restrict the ability to move to an a la carte system, Ireland said.

"There is only so much that can be done to move us towards a la carte when the programmers that own the channels are against it," Ireland said.

And should regulation or legislation someday force a la carte choices, consumers may find themselves paying the same for less content, the analyst added.

Networks unhappy

Verizon's attempt to shrink the size of packages has attracted the ire of some channel owners.

"The issue here is that Verizon made unilateral decisions on how to offer ABC Family, Disney Channels, ESPN and ESPN2 that are in violation of our existing agreements," according to a statement from the Walt Disney Co.

Fox Sports also voiced its displeasure. "We reject Verizon's view that it can pursue the new packaging scheme it announced yet still comply with our agreements," the statement said.

We'll see what happens as the viewer habits continue to evolve.

Atlantic Highlands resident Gail Woods found that her son prefers to watch YouTube videos on an iPad. She watches series on Netflix as well.

"Cable is not as prominent in our house anymore," Wood said. "It is not as relevant. What is relevant now is being able to stream the shows we want to watch."

Maryann Small of Monmouth Beach prefers Netflix over cable TV. "I just like to watch what I want to watch when I want to watch it," she said.

Do you have a consumer problem that needs solving? Contact David P. Willis at 732-643-4042, pressonyourside@gannettnj.com or facebook.com/dpwillis732.

VERIZON FIOS CUSTOM TV PACKAGE

•Starts at $54.99 per month

•Has 35 basic channels, including broadcast stations

•Two genre-specific channel packs of 10 to 17 channels. Each additional channel pack is $10.

CABLEVISION CORD CUTTER PACKAGE

•Starts at $44.99 per month

•Includes a free digital antenna and Optimum Online Ultra 50 and above service

•Access to 1.1 million Optimum wi-fi hotspots.