Will 'skinny' cable TV packages mean a fat bill for some consumers?
So-called 'skinny basic' cable has arrived, but will it actually result in cheaper cable bills?
Starting Tuesday, Canadians have the option to buy cable television for as little as $25 per month.
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The so-called "skinny basic" option has been mandated by the CRTC. The federal broadcast regulator ordered the changes a year ago, calling for "smaller, more affordable basic service that prioritizes Canadian TV services."
In New Brunswick, Shaw is providing 32 local Canadian channels in the skinny basic pack, while Rogers offers 29 Canadian and U.S. stations. Bell is offering its customers 23 Canadian channels, plus the main U.S. networks, but those five networks (ABC, CBS,NBC, Fox and PBS) are free for the first three months only.
For many TV viewers, it would seem that switching to skinny basic might not be worthwhile, as the cost of additional channels can quickly raise the final price.
In addition, equipment fees and other services can often be waived when consumers sign up for expensive plans and anyone who bundles in home phone and internet may get offered other plans at the same price.
The product is meant to give Canadians another choice.- Daniel Bader, technology analyst
Daniel Bader, a technology analyst, says for most cable subscribers, switching to a slimmer plan may not be worth it.
"You will end up paying more in the long run if you do pare back to the skinny basic or starter packages, and then add on bundles or individual channels until you've reached the point where you were at before," Bader said.
However, Bader said that is not the purpose of this product as it is really designed for people struggling to afford TV service.
"The product is meant to give Canadians another choice, many of whom would not be subscribing to television service at all. Many low income Canadians have cut the cord, so to speak, because they weren't able to afford the high prices for what was considered basic cable before today," he said.
Right now, Bell is the only provider offering customers the ability to pick additional channels one-by-one, rather than in extra packages, but by Dec. 1, all companies will have to offer that option.