Is paying for a TV and Internet bundle worth it?

Here are two words guaranteed to spike your blood pressure: Cable bill. Yes, the price of cable isn't cheap, which is probably why bundling cable and Internet to bring down the price is so popular.

But, with new and often cheaper methods available to watch television - such as streaming TV via Netflix or Hulu - is paying for a bundle even worth it?

We talked to some telcom experts and consumer-savings experts to get their take on the issue. Keep reading to find out what they have to say.

Pricing Structure

To get the biggest bang for your buck, bundling TV and Internet is often better than purchasing the services separately.

Consider Comcast's current pricing structure: Their least expensive Internet service is $39.99 per month. However, if you bundle it with TV, the price is the same for six months - with a two-year agreement.

"The savings for bundling are real, so they make it really hard to pass up," says Jeff Blyskal, a senior editor with Consumer Reports who has reported on cable TV and Internet providers.

[Want to save on your TV and Internet? Click to get quotes from providers in your area now.]

Harold Stark, a customer of Oceanic Time Warner cable, bundled his TV and Internet and said it was an easy choice. He says he was thinking of choosing Standard Internet (there are many levels) for $57.99 per month.

But instead, he chose the Surf Pax Extra bundle. It was $86.95 and included Digital TV with 450 channels, but no premium channels, and Standard Internet, which is up to 15 Mbps. There were some other fees, like a modem lease and taxes, that pushed his bill to close to $100, but he says he'd pay those whether he bundled or not. So he was happy with his choice.

Promotional Rates Are Great, But Remember: They're Temporary

The promotional rate consumers get for bundling their TV and Internet is often great, but the discounted price isn't permanent. The price hike usually occurs after six months or a year, says Blyskal.

"The big problem is that when it does go up, it really goes up. So a promotional rate is both a blessing - when you're paying less - and a curse, when it shoots up," he says.

I learned this the hard way myself. When I moved into my home I signed up for a bundled Internet and digital cable TV package from Oceanic Time Warner, the only cable provider in my area. My cost was just under $100 per month for both.

But that was a promotional rate, which ended six months later. My bill shot up to over $130, increasing even more over time, until finally it was $143.35. That's when I couldn't take it any longer. I called the cable company and complained, highlighting the fact that I, a loyal customer, was paying almost $40 more than their current offers to new customers.

[Looking to save on your TV and Internet? Click to get quotes from providers in your area now.]

To my surprise, it worked. It took insisting on a transfer to a supervisor, but it all paid off. My bill was reduced to $111.55 per month. That was a savings of $31.80 a month - more than $380 a year. I thought I was pretty special. But apparently I am not.

Blyskal says that, based on his research, the vast majority of people who do complain when their promotional rate goes up get some compensation. The compensation comes in the form of reduced cost, fees waved, or free premium channels, he says.

There are no guarantees, of course, but it does make signing up for that promotional bundle just a little easier to do.

If You Can Avoid Signing a Contract, a Bundle Could Be Worth It

If you have multiple TV providers offering service in your area, the smartest thing you can do is switch providers whenever your promotional period comes to an end, and go with another provider's low introductory rate. Of course, if you sign a contract and face penalty fees for ending your contract early, it's not the brightest idea.

"If you're trying to get out of your contract early, then you'll be subjected to early termination fees," he says. These can be anywhere from tens to hundreds of dollars, he says. "Clearly, it's not worth breaking your terms if you can help it," says Jeff Haynes, an editor with TechBargains.com, which gives savings advice to consumers.

That's why Blyskal advises not entering into contracts in the first place, if at all possible. He suggests consumers negotiate this when they first call the cable company to start service, he says.

"They want your business most then, and because you usually have at least the choice to go with satellite service, there is some competition," he says. As a result, he says this is your best shot at going contract-free.

[Click to compare TV and Internet packages from providers in your area now.]

Why Are Consumers Sticking With TV Bundles?

For a few years now, we've heard a lot about the coming revolution against cable, in which people will cancel cable in droves and stream all their content from online services such as Netflix, Amazon Instant Video, or another virtual provider.

But so far, people are finding cutting the cable cord pretty complicated, says Russ Crupnick, a senior vice president and media industry analyst for NPD Group, an international industry research and consulting firm. Instead, to save money, he says the most common thing people are doing is adding one or more of these services to their cable TV service.

Crupnick says people are sticking with cable because the cable companies do a great job of bundling up all the channels in one place, for one all-encompassing price. "So we complain a lot about cable companies, but really, they're pretty good at doing all the work for you," says Crupnick.

In addition to the low introductory rates and ease of TV and Internet bundles, another enticing perk of bundles is that they typically come with some sort of free perk. Perks can come in the form of Visa gift cards and tablets, just to name a few things.

But perhaps the most common perk is free premium channels like HBO, Cinemax, or Showtime - for a limited amount of time.

"Free premium channels are actually pretty easy to get when you negotiate your bundle," says Blyskal.

The Bottom Line

Weigh your options carefully. Yes, low introductory rates and free perks are hard to resist. But, if you don't really need all the channels or Internet speed that comes in the TV and Internet bundle, you may be spending more than you need to.

You should thoroughly review your options and make sure that the bundle makes sense for you - especially after the honeymoon phase of low rates and free swag is over.

[Do you want to save on your TV bill? Click to get quotes from providers in your area now.]