I tend to agree it's mostly a targeting / sales pitch problem ...
Who is the target audience for $7.95 TV subscriptions? ...
What compelling reason would someone have to pay for something they likely can easily get for free ...
Put yourself in the shoes of a surfer who sees your ad - what would it take for you to be convinced? ... then change your sales pitch on your site (I've not seen it) accordingly.
Click fraud, on average, from what I've read, typically tops out around 20% for most advertisers ... assuming that, hypothetically, is true in your instance, then that still leaves over 300 clicks that didn't convert for some reason...
Try some other, perhaps more specific, keywords and/or limit the display of the ad to very specific regions / countries.
Have you read the Google AdWords help forums? ... if not, that's a good starting point.
Ron