How to negotiate down your higher cable bills

Your cable or satellite TV bill is probably going up — again. 

Comcast has said customer bills will rise 2.2%, on average, in 2018. AT&T is raising DirecTV's prices by up to $8 a month in January. And smaller providers are planning other increases.

"You can't get an exact number of how much more you'll pay because everybody has a different rate plan and people have different services and promotions," said Michelle Gilbert, a Comcast vice president for the Heartland region, which includes Michigan. "But, we're talking about 2½%, which is tied to programming."

Cable companies say the price hikes are to cover the rising fees they pay to carry TV networks. They also say they are investing more in better technology. The networks also blame rising costs. Ultimately, though, those costs are passed on to you.

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Subscribers spend an average of $85 a month on cable, and more than $100 a month on satellite TV, according to Leichtman Research Group. 

Prices for TV service have soared 53% from 2007 to 2017, according to an analysis from S&P Global Market Intelligence.

Experts say you can take steps to reduce those higher bills.

Call and negotiate

You can threaten to ditch your cable company in hopes of getting a discount. Companies will often offer a promotional rate for a year or two — though they may also try to get you to upgrade packages in the process.

"It's smart to shop around," Gilbert said. "We always welcome people to call in and ask if promotions are accessible to them. We encourage customers to call in and let us help them."

BillFixers, a service that fights on your behalf in return for a cut of your savings, estimates that 55% of customers are on a promotion at any given time. Still, just having a discount doesn't mean it's a good one.

BillFixers' founder Ben Kurland recommends calling to complain about prices and rejecting the first deal offered. More often than not, a better discount will be available if you ask for it.

Get rid of extras

Review your viewing habits and bill with an eye toward seeking a less expensive package. Drop channels you don't watch and can live without, and features and other services you may not want or need. 

You might be paying for high-speed Internet, for example, that you don't use.

If you decide to cut one of your services, such as your home phone, and feel that you are still paying too much, Kurland advises waiting a month and calling back again to check for new discounts or offers.

Cable companies are already dealing with customers dropping TV service entirely. That hurts the networks, too, as their fees are based on the number of subscribers. It's in everyone's interest to keep you as a customer, even if you are paying less.

Check the fees

You may be able to reduce your bill by reducing rental fees for set-top boxes by cutting back on the number you have or rental fees for internet modems by buying your own.

Do you have one or several set-top boxes for watching TV throughout the house? 

If you package your cable with internet, consider buying a compatible modem instead of paying the monthly rental fee. You'll end up making back the money you spent on the modem in the long term. Just make sure the equipment is compatible.

Avoid contracts

A long-term contract may give you a deal, but it also prevents you from shopping around.

Phillip Swann, publisher of the television industry site TVPredictions.com, makes the case you're just better off staying with a month-to-month commitment because once you sign, you lose any leverage to negotiate for the duration of the contract.

He said consumers usually pay as much — or more — with a contract compared to a plan without one. Also, if you want out, many contracts will require you pay an early termination fee.

But, not everyone is in agreement about this.

Gilbert, for instance, said that for some customers a two- or three-year Comcast contract "makes a lot of sense," because, during the life of it, it locks them into in a lower price that could end up saving hundreds of dollars.

Cut the cord

An increasingly popular option is to switch to streaming services, some of which are available for about $20 a month — and available from cable providers such as Comcast. This option could save you money and give you more flexibility to watch on your phone or tablet.

A drawback, however, may be limited channels.

There are still 94 million cable and satellite TV customers, but that's about 4 million fewer than two years ago, according to MoffettNathanson Research. Online TV services such as YouTube TV, DirecTV Now and Sling TV also offer smaller packages of channels, often for less than what cable charges. 

And antennas — which help improve reception of free over-the-air networks — are available for $50.

What you don't want to do is end up paying more for online services to replace cable TV.

Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com. The Associated Press and USA Today contributed to this report.