Comcast Offers Basic Cable-to-VOD Upgrade

Comcast Corp. (CMCSA) is providing a price promotion whereby these consumers upgrade to the next tier, which features video on demand for $8.99 per month for three months, and includes the operator’s AnyRoom On Demand feature free.

For that charge, customers move up to Comcast Digital Preferred service and need a converter and remote to access VoD. The offer is available until the end of March and comes at a time when many consumers are considering their entertainment options.

VoD provides viewers access to a vast array of free and pay programming that customers can watch when they choose. The content includes free and pay-per-view movies, free TV, and network series episodes that sometimes carry fees.

As an added lure, Comcast is offering its AnyRoom On Demand feature, which lets users begin viewing a show in one room and finish it in another.

After the 90-day promotional period, customers pay $13.95 per month for Digital Preferred service. As of yearend 2008, the converted box and remote cost $1.95 per month.

The offer comes at a time when cost-conscious consumers are seeking out, and often finding, cheaper options for viewing movies. They include $1 per night rentals from automated kiosk vendor Redbox and streaming video for TV for PC.

Comcast emphasizes that promotions typically aren’t available across all its cable systems and may be restricted to one, such as greater Boston.

News of the VoD-focused promotion comes via a slick monthly direct-mail, magazine-like piece that also includes coupons for customers to buy one pay-VoD movie per month of up to $4.99 in value, for 99 cents. Comcast began this offer in December.

The piece promotes pay VoD movies that, in some cases, are available the same day as they are released on DVD, an accelerating phenomenon designed to boost overall movie revenue by offering a far cheaper option than a new DVD purchase.

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