Comcast offers deals to new switch-over customers
NEW YORK, Oct 8 (Reuters) - Comcast Corp (CMCSA.O), the largest U.S. cable operator, is offering special deals of free television for a year in a bid to win new subscribers ahead of a government-mandated digital TV switch-over on Feb. 17.
The free cable basic cable programming will only be free if the new customers sign up for another paid Comcast service, such as Internet or phone.
Comcast said new customers who choose not to subscribe to additional Comcast services can get basic cable for just $10 a month for a full year.
The company said that basic cable in most of its areas offers 20 to 30 channels, including free-to-air broadcast channels like ABC, CBS, NBC and FOX as well as shopping and local public TV channels.
Cable companies are hoping to win new customers with the government-mandated switch-off of analog TV signals next year. Households who currently watch TV for free over-the-air will no longer receive signals. They believe that customers will opt for the "easier" cable option, which does not require any new equipment.
Consumers can receive satellite TV signals, but that typically requires both a household satellite dish and set-top box.
The U.S. government is subsidizing a digital-to-analog converter box that plugs into an existing TV for those that do not have digital televisions. Consumers can buy the box through a government coupon program, which goes toward buying the box at retail prices of around $40 to $70.
Comcast executives have said they see a real opportunity with 2 to 3 million non-pay-TV households in its area which may not be able to receive digital signals over-the-air.
"It's not out of the question that we could gain a substantial number of new customers through the transition," said Comcast Chief Operating Officer Steve Burke speaking at a conference last month.
The second-largest U.S. cable company, Time Warner Cable Inc (TWC.N), told Reuters it is taking a more conservative view of the digital TV transition and does not expect significant additions just due to that. (Reporting by Yinka Adegoke)
