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!

TV Options Still Limited … Change May Be Coming

Whenever the local cable company makes a change or raises monthly rates, many look at their monthly bill and ask if there is a less expensive alternative.  We hear about other people “cutting the cord” and opting for a combination of receiving local channels via an antenna and using one of the many internet-based streaming services for the other channels.  Like so many purchase decisions, there is no one right answer.

As long as there is a single cable provider in our area and only two satellite services available your choices remain limited.  Both the cable and satellite companies force you into bundles of channels.  So if you want to watch some of the most popular channels like ESPN, History, DIY, etc. you are required to purchase a bundle of hundreds of other channels that you will most likely seldom watch.  For example those who are not avid sports fans are irritated that they pay about $5.00 per month for ESPN even if they never watch it because it is part of the “bundle.”

Before you decide to cut your cable you should do an inventory over a two or three week period.  Write down what you actually watch.  Once you have that list you can check if these programs are available using some other service.  For example, Netflix, Hulu Plus and Amazon TV offer many of the same programs found on cable.  Services like the History Channel, Smithsonian Channel and HGTV offer some complete episodes of series on their respective webpages.

Once you do the research you need to then do the math.  Right now you can’t cut the cord completely.  You still need to have a robust internet connection and install a TV antenna to get local stations.  The former will come with a monthly fee and the cost of the antenna will depend on where you live.  Some can use simple rabbit ears while others with require a more expensive outside-mounted antenna.

The streaming services like Netflix and Hulu Plus have monthly fees.  These fees need to be added to the cost of your internet connection.  Once you add up all these costs you will be able to make an informed decision if cutting the cord will save money and if it is for you.

Looking ahead, services like MyTV from Cincinnati Bell are beginning to offer ala carte channels, promising that you will only pay for the channels you watch.  Since this service is not yet available in most of the local area, it is too early to say if it will save significant money.  For sure, if MyTV becomes an option look for the Time Warner to begin to offer an ala carte service to compete.

If You Can’t Beat’em, Buy’em

One of the largest satellite TV providers, DirecTv is reported to have offered $1 billion to purchase Hulu. This is a classic example of a company covering its bets as they observe that the way we consumers watch TV continues to change.  For many of us, using cable or satellite to watch our favorite programs is becoming a thing of the past.  Hulu, Netflix and Amazon.com now offer just about any current show on demand and the HD picture is able to be displayed easily on the large flat screen in your family room.  It is no wonder that paying that monthly bill to the cable or satellite company for hundreds of channels we don’t watch is being questioned. 

A look at the catalog of offerings by Hulu Plus or Netflix Online will show hundreds of network programs available when you want to watch.  Not only can you watch the latest episode of your favorite primetime soap, you can go back and watch all the episodes, even those from a previous season.  Programs long gone from the big networks or from even the more esoteric cable channels are available on line.  Remember Rocky and Bullwinkle, or the original Star Trek from the late sixties?  They are all available for your viewing pleasure. And the price is just 8 bucks a month.

                                                                                                                      

To make a fair price comparison you need to factor in that to use Hulu or Netflix you must have a high speed Internet connection and that, of course, will cost about $40 to $60 per month.  But with most cases, switching from cable will save money.

Cutting the cable cord will also make getting live sporting events and late breaking news a bit harder to get.  Many have rediscovered over-the-air TV as a good solution.  Unless you live far removed from a large city, a modest antenna and new digital TV will pull in more local stations than ever before.  It is not uncommon for viewers in our area to receive 30 or more different channels over the air.

The recent offer to buy Hulu by DirecTv, from a partnership made up of News Corp, Disney and Comcast, will be interesting to watch.  All three of the current owners have more than a passing interest and financial investment in how we watch and pay for TV.  As they say in the business, “Stay Tuned.”