Comcast cuts cost of entry-level cable package 25 percent

With the nation's unemployment rate relentlessly above 9 percent and cable subscribers cutting the cord, Comcast Corp. has lowered the price of its entry-level 50-channel TV-only package to $29.95 a month in the Philadelphia area, a 25 percent drop from its previous $39.95 level.

Comcast spokeswoman Jennifer Khoury said the $29.95 price for its "digital economy" TV package simplified the cable company's pricing structure and allowed basic-cable subscribers to more easily upgrade. The digital-economy package does not include the popular ESPN channels, the most expensive in the cable-channel lineup. Separately, the nation's No. 2 cable company, Time Warner Cable Inc., is experimenting in New York City and Ohio with lower prices targeted at economically distressed consumers.

The pricing moves at the nation's two largest cable companies come amid a troubling period for the cable industry, which lost 741,000 basic-video customers in the third quarter, the largest quarterly decline on record, according to research firm SNL Kagan. Some industry experts blame over-the-top Internet providers such as Hulu or streaming services such as Netflix. But Comcast officials have pointed to economic factors and issues related to the over-the-air digital-TV conversion in 2009. Neil Smit, the new president of Comcast's cable operations, said in a conference call with analysts that it appeared people were switching to over-the-air TV broadcasts, not the Internet, when they cut the cable cord.