Before You Cut That Cord…

Before You Cut That Cord…Before You Cut That Cord…

There has been a lot of talk lately about cancelling cable or satellite services and opting for using online and over-the-air TV offerings instead.  I have written often about this trend. As average monthly cable TV bills hover near $100, a 40% increase in just 5 years, both the desire too for cut costs and changing viewing habits are pushing more of us to consider cutting the proverbial cord.  But before you get those scissors out of the kitchen drawer there are a few things you should do to make sure you will save money and can really get along without that cable subscription.

Most people will want to continue to receive their local TV channels using an antenna.  In most cases this is very easy but not always.  A reader recently sent me a note informing me that he cut the cord only to find out that he could no longer get local Channel 12 (WKRC) over the air.  The reason behind this is grist for another column but suffice it to say in some areas getting all the local channels with an antenna can be impossible.  The good news is that you can connect an antenna to your TV before making your decision to cancel your cable.  Your out-of-pocket cost is less than $20 for a simple indoor TV antenna and an hour of your time to see what you can receive.

Taking advantage of the various streaming services on the internet requires you to have a good internet connection.  You need to decide if the monthly cost of having internet connectivity should be factored into your decision-making equation since you most likely want that connection regardless of your cable cutting decision.

I suggest that you write down, over a two week period, the TV programs that you regularly watch.  Once you have that list you need to see which of these programs are offered free over-the-air and which are available on one or more of the pay streaming services.   Each of the major internet based TV services have a base fee. Hulu Plus and Netflix charge about $10 per month each while Amazon Prime has an annual fee of about $100.  The major networks, ABC, CBS, NBC and Fox each have offerings ranging from free to $10 per month. Good news: PBS streaming is free.

Now take a piece of paper and write down the combined costs of all the online services you will need and see how that number compares with what you are now paying for cable or satellite.  In most cases it will be less even if you factor in the entire cost of the internet service.

If you do cut the cord, when searching for your favorite show you may need to press a few more buttons. The learning curve is not steep and you will soon learn how to go from one service to the other.  If more and more of us decide to eschew cable, who knows, the providers might begin to offer a more a la carte TV menu with reduced fees.  But don’t hold your breath!

Time Warner Cable App a Real Tease

I am one of the increasing number of people watching more TV without using a TV set but it seems like some of the major players in the TV business don’t want to make it easy for me.   A good example of a company that seems to have adopted a strategy of the status quo is Time Warner Cable.  If you believe the glitzy commercials highlighting the Time Warner Cable App, you would be convinced that they were supportive of multi- device access to programs.  A look under the hood of this app indicates otherwise.

I have the Time Warner App installed on my iPad and iPhone.  When I first got it I had visions of really being able to watch what I wanted, when I wanted, and where I wanted.  After all, that is essentially what the TV spot promises.

It is true that the app allows many of the cable channels to be viewed on my iPad but not all of the channels I pay for and for sure not at the time or place I want to view them.  None of the local broadcast channels are available.  So no local news and weather.  These traditional channels can only be viewed over the air or on a cable connected TV set.  As I write this I am waiting to watch the Seahawks game.  Since it is being carried on WXIX, I am out of luck using my iPad or iPhone.  Same for the Colts vs Patriots later today.  That game is on CBS, Channel 12 which is also not available.

One would think that since I am already paying Time Warner almost $5 per month to get all of the ESPN channels they would be available on my iPad so I could enjoy a game or two while sitting on my deck rather than being tied to the TV set in the living room.  But that is not the case.

Perhaps the most frustrating feature of the Time Warner Cable App is that it requires me to be at home to view most of the channels that I pay for.  Leave the coverage of my home Wi-Fi router, and the number of channels is reduced almost exponentially.  I am left with Aljazeera America, BBC and few third-tier cable channels. There is left little I want to watch.

Why does Time Warner Cable and other legacy TV companies drag their feet providing true on demand choice to their paying customers?  No big revelation here.  The money they make providing traditional services, while diminishing, is still very attractive.  There is no motivation to embrace new services. 

The picture is slowly changing with some major national media companies by-passing cable and satellite services altogether and providing programming directly to the end user.  For example CBS has a subscription service that gives viewer direct access to most of their programming via the internet/

The current resistance to change makes me harken back to President Regan.  “Time Warner, tear down these walls.” 

HBO and CBS Expand Online Streaming

Last week HBO announced plans to increase program offerings using internet-based streaming.  While the very popular service has had some presence online, the bread and butter business has been delivering programs in cooperation with traditional cable and satellite services.  In the past in order to view HBO programs on your tablet, computer, smartphone or internet connected TV, you were required to be a cable or satellite service subscriber.  In fact, research indicates that HBO is a significant driver of cable customers to subscribe in the first place.  Simply put, up until now if you wanted to watch Game of Thrones, The Sopranos or Boardwalk Empire, three very popular HBO series, you had to subscribe to HBO via your cable company and pay a hefty monthly bill.

For several years customers of cable and satellite services had complained that they were forced into expensive program packages in order to get one or two of the networks they really wanted to watch.  For example, the average US cable customer pays $5.00 per month for ESPN even if they never watch it.  Recently there has been a slow but steady erosion of cable subscribers who prefer the “pay for what you watch” model promoted by online program providers.  HBO, the 800lb gorilla, has been slow to embrace the online model until now.   Their decision may bring us to a tipping point toward a la carte pay TV on cable.

It is not only the cable networks that are embracing an online pay-as-you-go model.  CBS announced that it will begin offering most of its shows online for a $6 monthly fee.  This will allow popular CBS shows to be viewed on demand bypassing local CBS affiliate (in Cincinnati Channel 12 WKRC).  While the other major broadcast networks have not announced similar services, competition will mostly force their hands.

These developments may offer the viewer more options in convenience and program diversity.  The impact however goes well beyond program choice.  The very basic business model of local TV stations is changed by the CBS plan.  Once a conduit for a national schedule of programs, the local station is no longer required to retransmit programming coming from the networks.  The worrisome outcome may be that the TV stations will follow the lead of radio stations when radio networks disappeared.  AM radio today has become a marginalized service full of shrill talk and a forum for both far left and far right wing zealots.  

The train has indeed left the station and there is no turning back.  Let’s hope that some creative minds can find a sustainable model for local TV stations.  They do provide local services that are invaluable to the communities in which they broadcast.