CUB's Guide to Cutting Your TV Costs

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CUB’s Guide to Cutting Your TV Costs A publication of the Citizens Utility Board November 2020

309 W. Washington St., Suite 800, Chicago IL 60606 ● CitizensUtilityBoard.org ● 1-800-669-5556 Table of contents Part I: Introduction 2 Your choices in the TV market 3 Typical cable package Cutting your TV costs: Getting started 4 Average channels you pay for: 200+

Part 2: Steps to cutting your cable bill 4 Average channels you watch: 17 Your cable bill, explained 6 Complaining to your pay-TV company 8 Average monthly bill: $100-$200

Part 3: Alternatives to satellite and cable 8 HDTV antennas 9 Streaming devices 10 Basic streaming services 13 Part 1: Introduction

Cable-replacement streaming services 15 There was a time when TV was simple and free. But now Examples of how to cut your TV costs 17 our choices go far beyond what’s playing on the major networks —and for most of us they come with a hefty price tag that threatens to get even bigger if we’re not careful. Glossary of terms 18 Traditional cable TV is still the choice of about 80 million households. It easily sets us back about $100-$200 a month, Helpful Resources 19 and yet, we only watch a fraction of the hundreds of channels our bloated cable packages offer. Video streaming services can allow you to watch movies and shows cheaply and on-demand through desktop computers, smartphones, tablets, game consoles and special A note about this guide devices that connect to your TV set. But as streaming options seem to grow every day, choosing the right services to cover all your viewing needs can be tricky—and the costs add up. This guide is not meant to be an endorsement of any particular product or service in the pay- Plus, remember that even if you choose streaming there’s a good chance you’ll still rely on the cable company for an in- TV market. ternet connection. So as much as we may want to “cut the In writing this publication, CUB has done hours cord” and say goodbye to cable TV, going with a streaming service doesn’t necessarily mean you’ll stop receiving a bill of research, reviewing more than 100 sources from the cable company. to provide you with solid information so you can make the choices that are best for your And as much as streaming services try to lure you away from household. traditional TV plans, some of them sure are starting to look like the cable industry of old. They’re now marketing compre- We have strived to be comprehensive and hensive streaming packages (also called “cable-replacement accurate, but prices and offers change often services”) that feature lots of channels, live TV and the ability to record your favorite shows. Their prices are reasonable com- in the industry. We list general price ranges to pared with most cable packages, but the costs are climbing. give you an idea of the costs, but we recommend you verify exact price tags and other Given an often-changing menu of choices, it’s not unusual for service details with the companies you are people to be overloaded with TV services—subscribing to a costly combination of multipe streaming options on top of a tra- considering. ditional cable package. No matter what services you choose, we This guide was last updated on Nov. 9, 2020. hope this guide clearly and simply explains your options and helps you develop a pay TV plan to minimize costs and deliver the programming that’s best for your household. 2 CUB’s Guide to Cutting Your TV Costs Your choices in the TV market

What option is best for you? A lot of people try to keep their cable/satellite service but reduce the big bills — something called “cord shaving.” You also could “cut the cord,” which means dropping cable completely and using an antenna for local channels or a low-cost internet streaming service, or both. Many others keep their cable/satellite package as is, but stack streaming service subscriptions, like Netflix and Amazon Prime, on top of it. It’s called “cord stacking,” and it can get expensive.

Streaming with Streaming live TV (cable Over-the-air TV Cable/Telco TV Satellite TV video libraries replacement)

Monthly cost: No Monthly cost: $40- Monthly cost: $40- Monthly cost: $6- Monthly cost: $20- monthly subscription $150+. (Promotional $150+. (Promotional $16 (Amazon Prime $130. fee. rates may be lower.) rates may be lower). 1-year plan is $119.) What is it? Compre- What is it? TV sig- What is it? TV deliv- What is it? TV deliv- What is it? Movies hensive streaming nals from the major ered to your home ered to your home via and TV programs you packages that re- networks delivered to over a fiber-optic or satellite. watch on demand semble traditional your home with the coaxial cable, or even through a service that cable plans, with live Typical companies: help of an antenna in copper phone lines. delivers content to TV and on-demand DIRECTV (AT&T), or on your home. you over the internet. content. Typical companies: DISH Network, Orby Typical companies: AT&T (U-Verse), TV. Typical companies: Typical companies: The major networks Charter (owns Time Amazon Prime, HBO Sling TV, Hulu + Live Equipment needed: (ABC, CBS, NBC, Fox, Warner; marketed as Max, Hulu, Netflix. TV, Philo, AT&T TV. Satellite dish, receiver. WGN), which don’t Spectrum), Comcast Equipment needed: Equipment needed: charge a subscription (Xfinity), Mediacom, Pros: Internet access, Smart Internet access, Smart fee for their program- RCN, Verizon (FiOS). ● Wide channel TV or TV with HDMI TV or TV with HDMI ming. choices. Equipment needed: port and streaming port and streaming ● Available in rural Equipment needed: Set-top box/DVR. device. device. areas. Antenna, coaxial Pros: Pros: Pros: cable, TV with digital Cons: ● Wide channel ● Lower prices, can be ● Live TV, wide chan- tuner (most TVs built ● Expensive packages. choices. a helpful supple- nel choices. after 2007). ● Reception can be ment to basic, live TV. Cons: poor in bad weather ● Lower prices com- Pros: ● Expensive packages. or if home lacks an Cons: pared with traditio- ● No monthly ● Not available in all unobstructed view ● May have to sub- nal cable packages. subscription fees. areas. of the sky. scribe to multiple Cons: Cons: ● Requires installa- services, each with ● Some packages are ● Limited channel tion of satellite dish monthly fees, to get as expensive as tra- choices. that some consider the choices you ditional cable plans. ● Reception can be unsightly. This could want. ● Requires high-speed poor or unreliable, be problematic for ● Requires high-speed internet service. especially in rural renters. internet service. ● May require adjust- areas. ● May require adjust- ing to a new TV- ing to a new TV- viewing format (dif- viewing format (dif- f e r e n t m e n u , w a y s f e r e n t m e n u , w a y s to find shows). to find shows).

2 CUB’s Guide to Cutting Your TV Costs CUB’s Guide to Cutting Your TV Costs 3 Cutting your TV costs: Getting started

You’re a long-time cable/satellite customer, and you want to see if you can save money?

Here’s how you begin: Pick up a notepad and ask yourself ● What channels or shows do you and your family want? some questions to find out what you really want out of (List all the must-haves.) your TV service. This will make it easier to decide the best ● Do you need live TV (news, your favorite sports teams)? option(s) for you. (See checklist, right.) ● Do you need premium channels, like HBO, Showtime Depending on how you answer these questions, you may and Starz? discover that cable/satellite is still your best option, despite the high bills and what can be frustrating customer service. ● Do different people in your home need to watch different shows at the same time? But even if you stay with your current provider, there may ● Consider your lifestyle(s). Do your schedules allow you be ways to save money. The next section discusses tips on to watch shows as they air? Do you want to fast forward, reducing traditional cable/satellite bills, an explanation of rewind and pause your shows? (You may want to consider typical charges on your bill and guidance on how to com- a DVR or a streaming service.) plain to your pay TV company.

Part 2: Steps to cutting your cable bill

Pay TV is one of the few industries where, typically, the to record shows. In the age of “on-demand,” when you longer you’re a customer the more the company charges can watch TV shows the day after their first run or visit a you. The best deals seem reserved for the newest custom- TV station’s website to view top stories, do you still need ers. So how do you beat the system? CUB compiled the a DVR? Consider trading it in for your cable company’s following tips: standard digital receiver. 1. Look at your current bill. Go over it line-by-line and 3. Buy your own modem. If you get internet service write down all the charges you don’t understand and the through your pay-TV company, skip the annoying $8 to services you might not need. You might uncover an option- $10 monthly modem rental fee and buy your own device. al charge, such as “Wire Maintenance,” that you can drop That can save you hundreds of dollars. Just make sure you from your bill. (See page 6 for more on cable bills.) buy a modem that is supported by your cable company. Not all companies allow you to buy your own modem— 2. Ask: Can I cut down on equipment? Are you paying for AT&T does not, but Comcast does, for example. CUB has a multiple cable boxes for different rooms of your home— fact sheet on this at CitizensUtilityBoard.org. one each for the family room, the kitchen and the bed- room? Consider saving money by renting fewer boxes and 4. Go straight to your company’s cancellation or retention limiting your TV watching to fewer rooms. department. Avoid talking to a front-line customer service representative, and instead go directly to the department Also, cable providers often charge a monthly rental fee that has the most power to give you the best deal. If the for the Digital Video Recorder (DVR), which allows you

4 CUB’s Guide to Cutting Your TV Costs phone menu gives you an option like “Cancel my service,” services separately. The phone service in these packages is take it and ask for a better rate. often not a good deal, giving you more services (three-way calling, call waiting, and Caller ID and voicemail you can 5. Find your company’s cheapest plans. Feeling pressure see on your TV screen) than you actually need. from streaming services, cable companies offer “skinnier” bundles—cheaper packages with fewer channels. Consum- Of course, your cable company may offer you a good deal er Reports recommends asking your cable company for the on the TV service if you bundle. Before you make a final absolute cheapest TV deal it offers—not just the “basic” decision, find out what your company would charge you to package. bundle TV and internet only. Buying a cheaper phone plan and separately bundling your cable and internet services Your cable company may hide these deals. If you’ve visited might beat any triple play package. your cable company’s website before, it may recognize you as a current subscriber and NOT display the lowest rates it 9. Be a polite, but confident negotiator. Some tips on nego- offers. (Remember, the best deals often go to new customers.) tiating: That’s why Julian and Ben Kurland, the founders of a bill-cut- ● If your cable company offers to lower your bill, politely ting company called BillFixers, recommend searching your ask: “Can you do better than that?” If the rep doesn’t give cable provider’s website in “private” or “incognito” mode. you a better price, say you’ll sleep on it. That may spur the It’s simple to do—there should be a menu on your browser rep to offer a lower rate—or the next day you might talk to (Google Chrome, Internet Explorer, Firefox, Safari) that lists a rep who’s willing to give you a better price. “private” or “incognito” mode. Using this method, CUB found “skinny” Xfinity TV/internet plans with fewer channels ● If you negotiate a better bill, ask for a one-time credit on (about 10+-125+) that ranged in price from about $35 to $80. top of the lower rates. Also, ask if there’s any charge for Once you know the best rate, ask for it. changing service and if so request the company to waive it.

6. Find out what the other guys charge. Check your mail ● Beware of getting upsold. “A bargain is only a bargain for offers from other pay-TV companies or streaming ser- if it’s something you actually want,” Wall Street Journal vices, or go to their websites and find the lowest prices for reporter Charles Passy warned. If your company offers the services you want. Then call up your current company you free premium channels—for a short period—and you and threaten to switch to a competitor unless it meets or don’t want that, ask for another free upgrade, such as faster beats the rival deal. Don’t overuse the “I’m going to take internet. Remember, eventually promotions expire and you my business elsewhere” line, but it can be an effective will have to cancel it—or negotiate again. tool—because, as tech writer Ed Oswald points out, it costs a cable company more to gain a customer than to keep one. 10. Write it all down. When you’re done talking to your cable company, write down your new prices, contract 7. Be open to locking in. Your pay-TV company may offer terms—including when the new offer ends—along with the you a lower rate, but require you to sign a one-to-two-year name and, if possible, ID number of the company employee contract. The downside is you won’t be able to take advan- who gave you the offer. And don’t wait for your first bill tage of a better deal in that time. But the upside is your bill to verify those rates. Within a week of negotiating the new won’t change until the contract ends. deal, call to verify that your account has been updated. Find out how long the deal lasts, so you can prepare to 8. Be wary of bundles. Cable and phone companies offer negotiate again. “triple play” packages that bundle TV, internet and digital phone service with a hefty price tag, but still at discount- On the next page, we tell you a little more about your cable ed rates compared with what you would pay buying the bill, and give you tips on how to talk to your cable company. 4 CUB’s Guide to Cutting Your TV Costs CUB’s Guide to Cutting Your TV Costs 5 Your cable bill, explained To cut your cable bill, it helps to understand it. In this sec- allows a pay-TV company to carry networks’ programs. tion, we take you on a tour of a Comcast bill. The charges (But don’t customers already pay for the right to view a of other pay TV providers will be similar. network’s content through subscription fees?)

Key charges on your cable bill ● HD Technology Fee (a.k.a. Digital Receiver): Most pay-TV subscribers lease set-top boxes in order to view their content. While some of these fees can be avoided, they are all These rental fees cost cable customers $20 billion a year, ac- add-ons that allow a company to raise your bills while not cording to the Federal Communications Commission (FCC). increasing the advertised rate of your cable package: ● Regional Sports Fee: This fee ($14.45 on a recent bill) is ● DVR Service: This covers the digital video recorder that designed to help Comcast recoup money it spends on big allows you to record your favorite shows. If you have mul- broadcasting contracts for professional sports and regionally tiple TVs you might have to pay for multiple DVRs. The owned sports networks. For most packages, you help them DVR and set-top box can be one and the same. recover this money—even if you’re not a sports fan. ● TV Adapter (optional): Some families who own more than ● Wire Maintenance (optional): Cable companies may offer one TV may choose to purchase a digital adapter and pay an this monthly insurance plan to cover cable-related repairs. Read additional fee (about $7) instead of renting another set-top the fine print: These plans are often so limited they’re not help- box/DVR for that TV. The small device allows digital TV ful. A company may include this for free as part of a package. signals to be enjoyed on an analog TV in other rooms. ● Wireless Gateway, a.k.a. Modem Rental (optional, if you ● Anyroom DVR (optional): Allows people to watch re- use your own modem): A charge should only appear if you corded shows from any room in their house and view their rent your internet modem from a cable company. recordings on different TVs at the same time. ● Blast! Internet Service (optional): Any type of internet ● Broadcast TV Fee: Comcast says this charge ($11.70 on speed increase—whether promotional or negotiated—will one recent bill) covers the costs associated with the net- be filed under this label on a Comcast bill. works’ carriage contracts—the business agreement that

6 CUB’s Guide to Cutting Your TV Costs Here is a sample Xfinity bill from an Illinois customer. (Note: The images are from pages 1 and 3 of a three- 1 page bill.) 3 1. Account Number: Your account number is at the top 2 of the page, along with other key information. Anytime you contact your cable provider, whether for payments or questions, you will need to provide your account 4 number. 2. Billing Date: This date refers to when your bill was printed. Note: Any changes to your service or payments made after this date will appear on your next bill. 3. Service Period: The dates of service reflected in this bill. 4. Your Bill at a Glance: A snapshot of your charges, including the total amount due and when it is due. Regular monthly charges—constant items in your cable package, such as TV/internet service—are separated from one-time charges, such as for on-demand rentals. “New charges” refers to all charges applied to your account for the service period listed on your bill. This box also displays if you have a previous, unpaid balance. 5 5. Payment Slip: Unless you pay online, the payment slip should be mailed to your cable provider with a check or money order for the amount included. Also write this amount in the gray box for “amount en- closed”. 6. Regular monthly charges, etc. This is a breakdown 6 of all your charges. “Regular monthly charges” refers to recurring charges that should stay the same, unless there’s a change to your contract. Changes made in the middle of the billing period—like adding or removing a service—are reflected in “Partial charges or credits.” (Such charges will cover the date of the change to the end of your current billing period.) You’ll also see charges for additional “Equipment & services” (DVR, internet/voice equipment, etc.), and “One-time charges,” for on-demand and pay-per-view rentals. The “Other Charges” section covers fees, such as the “Broadcast TV Fee,” that Comcast says are “based on programming costs in your area and your level of service.” They allow the company to charge you more without reflecting the extra amount in the cost of your package. Charter might list a cable maintenance fee in this section. (See “Key charges” on the previous page.) WARNING: Promotional rates end. Know exactly when your current promotional rate is set to end (and, thus, when your bill is set to go up), and call a few 7 weeks before to try to negotiate a better rate. 7. Additional Information: Includes updates or changes to your service. (Look for contact numbers on page 2.)

6 CUB’s Guide to Cutting Your TV Costs CUB’s Guide to Cutting Your TV Costs 7 Complaining to your pay-TV company

If you have a complaint with the cable/satellite company, before making the call, know exactly what your goal is, and even jot it down before you make the call. For example, “I want a refund or at least an explanation as to why I shouldn’t get one,” or “I want the cheapest plan they market.” ● Have your paperwork ready (contract, past bills, letters from the company). Prior to calling your pay-TV provider, make sure you know the costs, dates, components and terms of your current contract or service. ● Call at the right time. One study showed that customers who called between 9 and 11 a.m. got the fastest response time. It’s no guarantee, but it can’t hurt to call at off-peak times. (Also, check if your cable company’s website has a chat function.)

● Take a tactful tone. No matter how exasperated you may not being properly addressed, politely and calmly ask to feel, it’s always best to be calm and civil. speak with a supervisor. ● Be thorough. At the beginning of the call, take down the ● At the end of the call, summarize what you heard from rep’s full name, employee ID (if he or she has one), and the the customer service rep to make sure it’s in line with your time of the call. understanding of the call, and ask what the next steps are, ● Ask for permission to record the call. By law you have to including when you should expect a response from the get permission before you record, but knowing the call is company. being recorded will keep the customer service rep on their ● Get social. If you’re not getting anywhere with your pay- toes. Whether you record or not, take good notes. TV company, consider taking your concerns to social me- ● Go higher if needed. If you are concerned that your com- dia. Twitter and Facebook can be effective forums for your plaint has not been properly heard and documented, or is grievance. Remember, the rule is the same on social media as it is on the phone: Be direct, but civil (please).

Part 3: Alternatives to satellite and cable

People tired of the high bills and big profits of the cable/satellite service without penalties. Streaming services come in two providers might consider “cutting the cord.” The pay TV mar- categories: ket now offers a variety of options and opportunities to save. Basic streaming services: These services, like Netflix, Amazon If you already have a high-speed internet connection, Prime and Hulu, offer online libraries of TV shows and movies shows and movies could be streamed to your home online for less than $20 a month. There are free streaming services also. at a fraction of the cost of traditional cable. Plus, most, if not Cable-replacement streaming services: Such services, like all, offers, have no contracts so you can cancel and restart Sling TV, FuboTV, Hulu + Live TV and Philo, offer packages that resemble traditional cable plans—with on-demand shows and movies and even live TV— for $20 on up. Big TV’s 2019 profits: Beware that subscribing to multiple services to meet your family’s diverse viewing needs can be just as costly as a AT&T (owns DirecTV): $13.9 billion bloated cable package. Streaming customers paid $15.9 billion in 2019, according to Cord Cutters News, and the average Comcast: $13.1 billion customer paid for three services. Want something simpler, and cheaper? Think about ending Charter: $1.7 billion your cable subscription and simply using an indoor or outdoor antenna to get local channels for free. Dish Network : $1.4 billion One of these options, or a combination of them could meet your TV needs, and lower your costs. We’ll start with the Source: Corporate earnings reports. simplest, and oldest, option: the antenna.

8 CUB’s Guide to Cutting Your TV Costs HDTV antennas

An HDTV antenna is much better than the old-fashioned These small and powerful “rabbit ears” from TV’s early days. (They also look differ- devices, which can be dis- ent—some are sleek sheets of black or white plastic.) creetly placed in a room, are especially helpful to Today’s version can help you avoid a high-priced cable people who live in apart- subscription by serving as your stand-alone TV service or a ment buildings where supplement to your streaming service. On the flip side, you mounting an outdoor may not receive hundreds of channels, and the channels antenna isn’t an option. you do receive can occasionally suffer from poor reception, especially during bad weather. However, building ma- terials can interfere with If you’re interested in purchasing an antenna, here’s what the digital signal, as can you need to consider: household appliances, such as computers, and wireless Which over-the-air channels are available? gear, like internet routers. If you live in the Chicago region, you’ll have several to Outdoor antennas are choose from, like major network affiliates (CBS, NBC, ABC, more complicated to in- Fox) and PBS. However, your choices may be limited (or stall, but they can offer the nonexistent) depending on where you live in Illinois. The best TV reception because websites below will provide a list of channels your area they have a better line of receives: sight to broadcast towers, ● Federal Communications Commission (FCC): fcc.gov/me- with fewer obstructions. If dia/engineering/dtvmaps you live far from broadcast towers (more than 25 miles), a long-range outdoor antenna may work best for you. ● TV Fool: tvfool.com UHF or VHF? Channel signals travel in different frequency ● Antenna Web: antennaweb.org bands. Generally, Very High Frequency (VHF) refers to channels 2-13 and Ultrahigh Frequency (UHF) to channels Make sure you have the right TV 14 and beyond. Make sure to get an antenna that covers To use an HDTV antenna, you must have a TV equipped both UHF and VHF. with a digital tuner. Most TVs manufactured since 2007 were built with one. Price Make sure you have the right type of antenna Over-the-air antennas can range in price from about $10- $200 (a recent review found a range of about $10-$100 for Omnidirectional or directional? With a directional anten- indoor antennas, and about $35-$200 for outdoor devices). na, you can get clear reception by aiming it toward a TV The price is dependent on the strength of the antenna and tower in the nearest major city. These antennas might be the types of channels it receives. best for consumers in far suburban or rural areas, more than 25 miles from a TV tower, because they can point the Outdoor antennas will probably have additional costs for antenna toward the nearest major city. installation. Remember, using an antenna does not require a subscription fee, like a cable package, so you avoid those An omnidirectional antenna, on the other hand, can receive long-term costs. signals from multiple directions. Homes within 25 miles of a TV tower, such as in a major city where there could be Final antenna tips a lot of obstructions, should consider the omnidirectional antenna. For many people, an indoor antenna will work fine. You might have to adjust the position of an antenna in your home sever- Amplified or nonamplified? Urban households that live al times before you figure out how to get the best reception. close to a broadcast tower can probably choose a nonampli- Keep it away from appliances that could cause electromagnetic fied antenna. However, if your home is more than 25 miles interference, like a hair dryer or microwave. (Putting it as high from a tower, or surrounded by obstacles like hills or other as possible and by a window could do the trick.) buildings, an antenna with an amplifier can pick up weaker signals from distant towers. Finding the best antenna for your needs might require a trial and error process, so before you buy your first antenna, make Indoor or outdoor? Indoor TV antennas might be the best sure it has a good return policy in case the device doesn’t solution if you live in a major metro area—near TV broad- work out. Once you have an antenna in place, scan for new cast towers. channels once a month. You should be able to find online scanning instructions for the make and model of your TV.

8 CUB’s Guide to Cutting Your TV Costs CUB’s Guide to Cutting Your TV Costs 9 Streaming devices

If an over-the-air TV doesn’t fully satisfy your viewing vices work best with wireless internet (Wi-Fi). If you don’t habits, you could stream your shows and movies over the have Wi-Fi, you may have to buy a separate adapter to make internet. You’ve probably seen people who subscribe to a a streaming device work. So it’s important to ask if the de- streaming service watching their favorite shows on a smart- vice you’re considering works with your internet connection. phone, tablet, even their desktop computer. ● The device allows you access to a streaming service, which But subscribers can also stream through their own TV sets—if you will have to purchase separately for a monthly fee. they have a modern “smart TV,” such as a Roku TV, or a ● Your TV must have a port on it labeled “HDMI.” device called a “streaming media player,” such as an Ama- zon Fire Stick or Google Chromecast. Even a game console ● The steps required to connect your streaming device to your connected to your TV can help you stream. (Note: Some cable TV are relatively easy, but you may have to ask a friend or fam- boxes double as a streaming device. While that makes it con- ily member for help, or contact the company’s support staff. venient to connect to Netflix, it won’t save you money because you’re still paying for cable — plus the cost of streaming.) For example, an Amazon Fire Stick comes with a power adapter and a remote. You simply plug the device directly Streaming media players, which you can buy online or at into the HDMI port in the back of your TV and then connect an electronics store for $25 on up, connect your TV to the the device to the stick’s power cord and plug it in. Then fol- internet. Here’s what you need to know to use one: low the steps on the screen to connect to the internet.

● The device will NOT have internet on its own. Your home An Apple TV is not a TV at all, but a small square-shaped must pay for an internet connection in addition to any streaming device—about the width of a large drink coaster. streaming subscription you buy. Note: Some streaming de- Unlike the Fire Stick, it does not plug directly into the TV, but connects via a cable. An HDMI cable looks like this: Once you set up your media player, then you can subscribe to the streaming service of your choice. But your new viewing life might require some getting used to.

An example of an Apple TV:

HDMI ports look like this:

Using a PlayStation to stream content:

Streaming device being plugged into an HDMI port:

10 CUB’s Guide to Cutting Your TV Costs The streaming device or smart TV will likely come with its ● If I don’t have a smart TV, is my set still compatible with own remote, plus the streaming service will have its own the streaming device I’m considering? set of on-screen instructions. So searching for your favorite TV shows and movies may require you to navigate multiple ● If I don’t have a smart TV, will the streaming device I’m menus. After spending a lifetime hitting the power button considering work with the streaming service I want? and channel surfing, it may take time a little time to master Below is a chart of typical streaming devices. Important: A this process. streaming device is a one-time cost, and those are reflected Other key questions to ask about streaming devices: below. But remember, you also will pay a monthly fee to the ● Do I have a smart TV, and is it compatible with the streaming service I want? streaming service or services (Netflix, Hulu, etc.) you choose.

Purchase Device Type How it works Features price

● Download apps and listen to music via iTunes. ● Plug into your TV via HDMI cables. ● Apple TV app allows you to also watch on Apple devices like iPhones and iPads. Apple TV Streaming ● Connect to Wi-Fi or wired $149 HD device network. ● A similar device, Apple TV 4K, lets you Apple watch with 4K picture quality and costs $179 ● Use the Siri Remote to find to $199. content. ● 1 year of AppleTV+ streaming included in purchase ($5/month value).

● Download apps listen to music via Prime. ● Plug directly into your TV’s HDMI port and into the wall. ● Allows you to purchase movies and TV Amazon Streaming shows, or you can subscribe to Prime Video. $40 ● Connect to Wi-Fi. Fire Stick device ● A similar device, Amazon Fire Stick 4K, is ● Control with Alexa Voice designed for 4K TVs that have better picture Remote. quality for $50.

● Connect Fire TV Cube to

Amazon devices Amazon TV’s HDMI port and plug it into the wall. ● Plays media in 4K Ultra HD and HDR. Amazon Streaming $120 ● Connect to Wi-Fi or wired ● Built-in Alexa. Fire Cube device network. ● Can browse the internet using Firefox or Silk. ● Control with Alexa Voice Remote.

● Plug directly into your TV’s ● Can stream content (TV shows, movies, even HDMI port. photos) to the TV from compatible devices such as your smartphone, tablet or computer. ● Connect to Wi-Fi. ● Can use voice commands as a remote control. Chrome- Streaming ● Your smartphone or com- $30 cast device puter serves as your “remote ● Compatible with Nest home security cameras Google control.” If you don’t have a to view camera feed on your TV. smartphone, it will be easier ● A similar device, Chromecast with Google to buy a streaming device TV, has 4K picture, provides extra features and that includes a remote. costs $50.

10 CUB’s Guide to Cutting Your TV Costs CUB’s Guide to Cutting Your TV Costs 11 Purchase Device Type How it works Features price

● Plug the TV in. You don’t need an extra streaming ● Compatible with cable box, HDTV antenna, device. Roku TV Smart TV $88+ and gaming consoles. ● Connect to internet and set ● Software and features update automatically. up your streaming service on the screen.

● Compatible with cable box.

Roku ● Comes with a voice remote with TV power Streaming Streaming $50 and volume buttons. device Stick+ ● This device can handle HD, 4K and HDR streaming.

Roku Streaming ● A similar service, Roku Express+, has more $30 Express device features, for a one-time fee of $35.

● This device can handle data-intensive streaming (such as HD, 4K, and HDR).

● Voice remote; compatible with Alexa and Streaming Roku Ultra $100 ● Plug directly into your TV’s Google Assistant. device HDMI port. Roku devices ● Comes with headphones that connect to your ● Connect to internet and remote to listen to your shows. create a Roku account. ● Lost remote finder. ● The Roku remote and Roku app control TV streaming. ● Specially designed for 4K TVs that have better picture quality.

● Free mobile app includes voice search capabilities, which means you can just say a title, actor, or director to search.

● Compatible with voice enabled devices, such Roku Streaming as Alexa and Google Assistant. $40 Premier device ● Allows you to use headphones to listen to your shows.

● Allows you to see your photos and video from your computer on your TV screen.

● A similar service, Roku Premiere+, provides a voice remote with TV power and volume buttons, for a one-time fee of $49.

Free for ● 4K picture. ● Plug into your TV’s HDMI XFinity port. ● Connects to streaming apps such as Netflix, but doesn’t include as many apps as others Streaming internet ● Connects to your Xfinity Xfinity Flex devices. device customers, internet. ● Only meant for Xfinity internet customers ● Voice control included with additional interested in streaming. If you are an Xfinity TV Comcast/Xfinity remote. at $5 each customer, you are not eligible.

12 CUB’s Guide to Cutting Your TV Costs Basic streaming services

Over the last decade, streaming services like Netflix have ex- ploded on the market. A Leichtman Research Group Study Specialized streaming services found that 74 percent of the country’s households streamed in 2019, compared with 10 percent in 2009. The chart on p. 14 summarizes typical streaming services, but that’s just the tip of the iceberg. Check out these options too: Streaming options could be perfect for households seeking the flexibility to choose their programming—and dictate Acorn TV ($6/month or $60/year): Stream favorite TV shows their costs—in a channel-by-channel “a la carte” style that from Britain, Ireland, Australia, Canada, New Zealand and Spain. traditional cable customers have wanted for years. A similar service, Britbox, charges $7/month, or $70/year for In this section (including the chart on the next page) we content from British TV channels BBC and ITV. focus on basic streaming services. These companies were the first services to challenge the cable and satellite indus- Apple TV+ ($5/month): This service does not yet have a vast tries’ hold on TV watchers. Customers were drawn to their library, but ever since launching in 2019 it’s been adding original extensive online libraries of TV shows and movies at prices content, including “The Morning Show,” an Emmy-winning dra- under $20 a month. ma about a talk show starring Jennifer Aniston and Steve Carell. If you’re interested in a streaming service, remember that it ESPN+: For big fans, live sports coverage and original shows, for requires a high-speed, stable internet connection. Some key $6/month or $50/year. (Note: Professional sports leagues also questions to ask when shopping for a streaming service: charge subscriptions for their own streaming services.) ● Does my internet plan have a data limit, and could that cause problems for streaming? FandangoNOW: You register and rent or buy movies and shows individually as you would like. Rentals, 99 cents on up, ● Does my internet connection meet the streaming service’s minimum required internet speed? (A CUB review of stream- are available for up to 30 days to watch. ing services found they required a range of at least 3 Mega- Peacock: 20,000 shows, movies and news/sports (including bits per second, Mbps, for one device to 25 Mbps for higher NBC series, Universal movies, the Olympics). It has a free ad-sup- quality video content. Consumer Reports says families with ported version that gives you access to most of the library. You multiple streamers may need a minimum of 50 Mbps.) get access to all for $5/month (with ads) or $10/month (no ads). ● Can I use the streaming service on all my devices? Premium channels: HBO Max ($15/month), Showtime ● Will this streaming service allow more than one device to Now ($11/month) and Starz ($9/month) offer plans that be streaming different content at once? allow you to stream their shows and movies. ● Is a DVR important to me? It’s likely your basic streaming service won’t have DVR capabilities — but with an on-de- Vudu: Walmart’s pay-per view online video site lets you mand streaming service, that may not be important. rent or buy TV shows and movies from 100,000 titles.

● Is it better to subscribe to multiple streaming services, or There’s no monthly fee, but rental pricing ranges from about pay for a more comprehensive, cable-like streaming service 99 cents to $6. There’s also a section with free content. with DVR capabilities (see next section)?

12 CUB’s Guide to Cutting Your TV Costs CUB’s Guide to Cutting Your TV Costs 13 Company Cost Key Information

If you subscribe to the online retailer’s Amazon Prime service, you al- Included with Ama- ready have this streaming service. Watch thousands of popular movies zon Prime member- and TV shows, including original content (The Marvelous Mrs. Maisel, Amazon Prime Video ship for $13/month Fleabag), new releases and classic favorites. Subscribing to the Prime or $119/year service has other perks: Access to songs and free ebooks, and you can buy many items on Amazon.com with free, two-day shipping.

Access to thousands of episodes of CBS TV shows, including current $6/month with ads, seasons. Unlike most of the basic streaming services, this one offers CBS All Access $10/month without live TV and sporting events like the Super Bowl and the NCAA Tour- ads nament (March Madness). Will be rebranded as Paramount+ in 2021.

Includes Disney’s vast library of animated and live-action films and TV series, but also films from Star Wars, Marvel Studios and Pixar and National $7/month Geographic programming. It has bought 20th Century Fox, which means Disney+ or $70/year you get access to series like “The Simpsons” and “Malcolm in the Middle” as well as movies like “The Sound of Music.” Note: You can bundle Disney+, ESPN+ and Hulu for $13 per month. Hulu’s focus seems to be on popular prime time TV, and it releases episodes as soon as they air. (That can be helpful for watching shows that $6/month with ads, are in the middle of a season.) It has thousands of movies and shows, Hulu $12/month without and original content, such as The Handmaid’s Tale. Note for parents ads of college students: Hulu and the music service Spotify bundle their services for just $5 per month for college students.

Offers thousands of commercial-free shows, including old and new movies, foreign films, TV classics like “Star Trek,” and original programs like “Stranger Things” and “Grace and Frankie.” With the basic service, viewers Netflix $9-$13-$16/month can only use Netflix on one device at a time, but the other plans allow for up to 2 devices or up to 4, respectively. The Netflix app may come pre-load- ed on certain streaming devices, or you may need to download it.

Free viewing options Don’t forget: There are free ways to view TV shows and movies. ● Vudu (vudu.com): Walmart’s online video rental and purchase service also includes free movies. The easiest may be your public Library — most keep a comprehensive collection of DVDs/Blu-rays. Also, the websites of the ma- Other free movie services include: jor networks keep recent episodes of their most popular shows. ● IMDb TV (imdb.com/TV) If you’re worried about multiple streaming subscriptions adding up to one big TV bill, there are FREE (and legal) streaming ser- ● The Internet Archive (archive.org) vices available. A couple catches: You’re not likely to find original ● SnagFilms (snagfilms.com) shows or new movie releases, and you’ll probably have to watch commercials. Check to make sure your preferred viewing device ● Sony Crackle (sonycrackle.com) (smartphone, personal computer, tablet, TV, etc.) works with the service. ● Tubi TV (tubitv.com)

● Hoopla (hoopladigital.com): See if your library partners with ● YouTube (Visit YouTube.com, go to “Movies & Shows,” and this streaming service. You can use your library card to “check out” then scroll down to “Free to Watch.”) a movie for 72 hours. A similar library-connected service is Kan- opy (kanopy.com), which is unique in that it has no commercials. Tip: JustWatch.com allows you to quickly search across the internet for free or low-cost movies, including some of the web- ● Pluto (pluto.tv): This unique free service offers live TV in addi- sites listed here. tion to on-demand movies.

14 CUB’s Guide to Cutting Your TV Costs Cable-replacement streaming services

In recent years, streaming services have begun to market plans that are looking more and more like traditional cable Cable-replacement service checklist: packages, with a lot of channels—including live TV—and ● How many channels do I get, and are they the DVR service. channels I want? Ranging in price from about $20 to $135 a month, these streaming services tend to be more expensive than basic ● Do I get local channels (NBC, CBS, ABC, services like Netflix. But, for the most part, they still are Fox)? cheaper than typical cable plans. ● How many hours of recording time do I get These comprehensive streaming services could be the right through the service’s DVR? (And do I have to choice for a lot of households, but make sure to ask key pay extra for any functionality, like skipping com- questions before you dive in. mercials or fast forwarding through them?) As with the more basic streaming services, you should ask if the cable-replacement service you’re considering can be ● How many people in my family can stream at used on all your devices, and if your current internet plan once on my account? meets the streaming service’s minimum requirements for ● What kind of add-ons (like HBO) can I get speed and data usage. Also ask: and how much does that add to my monthly ● How many channels do I get — and do those include cost? local channels and other channels I want? ● Is there a free trial period, and for how long? ● With the DVR service, how many hours of recording time do I get, and are recordings erased after a certain time? ● What add-ons can I get (HBO, for example) and how ● How many devices can stream at once on this service — much extra do they cost? meaning can I watch an action movie while another family member watches a nature documentary? The chart on the next page summarizes typical cable-replacement streaming services and their prices.

14 CUB’s Guide to Cutting Your TV Costs CUB’s Guide to Cutting Your TV Costs 15 Simultaneous Company Cost Channels DVR streams per Add-ons subscription Premium channels like 60-140 channels de- Starz ($11/month) and 1 device pending on the package, 500 hours of HBO ($15/ month). $60-$130/ included, $10 AT&T TV including live TV, plus cloud record- Spanish channels for $15/ month per additional 40,000-65,000 on-de- ing time. month. International device. mand programs. channels for $20-$30/ month. You can add more pre- Live and on-demand 500 hours of Can watch dif- mium channels starting AT&T TV NOW content from 45-140 cloud re- ferent shows $55-$183/ at $5/month each. Span- (formerly Di- channels, including cording time, with up to 3 month ish channels for $5-$15/ recTV NOW) HBO and local sports stored for up devices at the month. International and news. to 90 days. same time. channels for $20/month. Can watch dif- 250 hours of Good for sports fans. ferent shows 116-162 channels, in- cloud record- There is an option for with up to 3 $65-$80/ cluding sports. In many ing time for a Spanish plan for $30/ Fubo TV devices for month areas, you get local family plan, month. Channel add-on family plan, channels NBC, CBS, Fox. 1,000 hours packages starting at $5/ 5 devices for for elite plan. month. elite plan. Enhanced DVR ($10/ month); Unlimited screens ($10/month); $55/month Can watch dif- 65 channels, including Enhanced DVR and (or $61/ 50 hours of ferent shows Hulu+ live TV, series, movies Unlimited screens ($15/ month cloud record- with up to 2 Live TV and original shows like month); Premium with no ing time. devices at the The Handmaid’s Tale. Channels like HBO or ads) same time. Showtime ($9-$15/month each); Español Add-on ($5/month).

59 channels, including Can watch dif- Save as many AMC, Comedy Central ferent shows shows as you Add-on channels starting Philo $20/month and the History Chan- with up to 3 want — for up at $6/month. nel (no local stations or devices at the to 30 days. sports coverage). same time.

Can watch with only 1 device with Extra channel catego- 10 hours of re- the Orange ries like Kids, Lifestyle, cording time, package, but Comedy, Espanol can be $30-$45/ 33-55 channels (depend- Sling TV can upgrade up to 3 at once added for $5/month. Cus- month ing on the package). to 50 for $5/ with the Blue tomers can also purchase month. package, and single network channels up to 4 with a la carte for $3/month. the combination package.

Channel add-ons, includ- Can watch dif- ing premium channels 85 channels, including Free unlimited ferent shows like HBO Max, starting live TV and in some YouTube TV $65/month DVR record- with up to 3 at $3/month, and Sports markets PBS and PBS ing time. devices at the Plus Premium add-on Kids. same time. (including NFL RedZone) for $11/month. 16 CUB’s Guide to Cutting Your TV Costs Examples of how to cut your TV costs

Below, we present three potential plans for your TV view- ● If you have an internet connection, you can subscribe to ing, but there are many possible options to choose from. Use two streaming services for about $25 per month (Netflix’s the worksheet at the bottom of the page to develop the plan $13/month plan plus Hulu’s $12/month plan, for example). that’s right for your household. First add up what you’re Monthly Cost: $25 a month for the streaming services, plus paying for your current cable/satellite package—the average what you pay for your internet connection. monthly cost is about $100-$200—and compare it to your costs below. Remember, streaming TV content will require One-time Cost: $10-$200 for an antenna, $30-$150, depend- a high-speed internet connection, so if you’re getting internet ing on what streaming device you buy. through your cable company, you’ll continue to pay that bill. Option 3 Option 1 ● If you have an internet connection, you can subscribe to ● Buy an HDTV antenna to watch live, local TV. one of the cable-replacement streaming services, which includes live TV, on-demand viewing libraries and DVR ● If you do not have an internet connection, you can sup- service for less than the cost of a cable package. plement the big network’s offerings with movies from your local library’s DVD/Blu-ray collection. Possible services include AT&T TV Now ($55+/month), Philo ($20/month), Sling TV ($30-45/month), and Hulu + ● If you have internet, you can enjoy free streaming services Live TV ($55/month). like Hoopla, Pluto TV or Crackle. Monthly Cost: $20-$180+ a month for a streaming service, Monthly Cost: The cost of your internet connection. plus what you pay for your internet connection. One-time Cost: $10-$200 for an antenna, $30-$150, depend- One-time Cost: $30-$150, depending on what streaming ing on what streaming device you buy. device you buy. Option 2

● Buy an HDTV antenna to watch live, local TV.

Worksheet: Your plan for cutting TV-related costs

Item Start-up costs Monthly costs

HDTV antenna None

Streaming device None or smart TV

Streaming service

Additional streaming service

Totals:

16 CUB’s Guide to Cutting Your TV Costs CUB’s Guide to Cutting Your TV Costs 17 Glossary of terms

4K: In digital TV, 4K resolution refers to a sharp image quality with a horizontal display resolution of approxi- mately 4,000 pixels. Digital television and digital cinema- tography commonly use several different 4K resolutions. In television and consumer media, 3840 × 2160 is the domi- nant 4K standard, whereas the movie projection industry uses 4096 × 2160. Analog TV: The transmission of audio and video via electronic pulses. Most TVs manufactured before 2004 are analog TVs. The federal government mandated in 2009 that most TV stations stop broadcasting analog signals and switch to digital signals. By now most people have digital televisions, but those with older models will need a digital converter box to watch TV. Auto-pay: A money transfer scheduled on a predetermined Modem: A device cable companies use to deliver internet date to pay a recurring bill for TV services. Automatic pay- service. The modem connects to the internet. ments can be made from a checking account or credit card. On-demand rentals/purchases: A programming system Cord-cutting:Leaving your cable/satellite provider for an which allows users to select and watch/listen to video or alternative service. audio content, such as movies and TV shows whenever they choose, rather than at a scheduled broadcast time. Cord-shaving: Staying with your cable/satellite provider but taking steps to cut your costs with that provider. Partial charges/credits: Charges or credits based on any changes you made (adding or removing a service) in the Cord-stacking: Staying with your cable/satellite provider middle of the previous billing period. and adding additional streaming subscriptions to your costs. Router: Connects to the modem and allows you to share your internet with multiple devices. (It “routes” internet Digital adapter: A small device for displaying digital tele- traffic to the appropriate devices—home computer, tablet, vision signals on your analog TV (also known as a Digital smartphone—on your home network.) Terminal Adapter). A router allows a home to have wireless internet, or Wi-Fi. Digital TV (DTV): The transmission of audio and video via Note: In some cases the modem and router are combined in binary code—a series of 1s and 0s. Digital TV has higher a single device. quality pictures and sound. Satellite TV dish: A curved antenna that captures a TV Digital signals also take up less space than analog, freeing signal from a satellite. At one time, a dish, receiver and up airwaves for more channels and other purposes, such as related equipment could cost a consumer $2,000 or more, a wireless network devoted solely to police and fire emer- but people can now get them for free as part of a Satellite gencies. (Most TVs made after 2007 include a digital tuner.) TV package. Digital Video Recorder (DVR): A type of set-top box you Satellite TV receiver: Converts the broadcast signal a dish rent from your pay-TV company or buy yourself. It lets you captures from a satellite into the pictures and sound a sub- pause and rewind live TV and record shows. scriber sees on the TV. Subscribers can get High Definition HDMI cable (HDMI port): HDMI stands for “High-Defini- Television receivers, and those equipped with Digital Video tion Media Interface.” It refers to a cord, cable or connector Recorders (DVRs) included in a satellite TV package. that transmits high-definition audio and video signals to Set-top box: A device you rent from your cable or satellite typical display screens such as HDTVs, projectors, and AV TV company that allows you to view your TV package. receivers. Most of these devices include an HDMI port on the back or side. Smart TV: Similar to a smartphone, smart TVs offer support for a range of apps, like Netflix, Pandora, YouTube, by High Definition Television (HDTV): This digital TV for- connecting to your home’s internet. mat is considered to be the highest quality for picture and sound. HDTV resolutions are 720p, 1080i, and 1080p. That’s Streaming Media Player (or Streaming Device): Similar to the number of lines that create the image. The letter signi- a cable TV or satellite set-top box, a streaming media player fies the type of scan used by the TV to show the picture: connects your TV and home internet to use streaming progressive or interlaced. services like Netflix. They can connect via wireless or plug into your TV. 18 CUB’s Guide to Cutting Your TV Costs Helpful Resources

CUB does its best to answer pay TV questions, but you should always call the company in question first. Below are some resources, including contact information:

General: To see the 100+ sources CUB used to research this guide, please go to our online sources page at CUB’s website: https:// www.citizensutilityboard.org/sources-cubs-guide-to-cutting-your-tv-costs/ Consumer Reports, an independent nonprofit that works for a fair marketplace, is an excellent resource. Its September 2019 issue focused on pay TV: https://www.consumerreports.org/cro/index.html. Here’s a more recent article: https:// www.consumerreports.org/streaming-video-services/how-to-replace-cable-tv-for-only-25-dollars-a-month/

Cable/satellite company contacts: AT&T (U-verse): 1-(800)-288-2020, https://www.att.com/u-verse-tv/ Comcast: 1-(800)-934-6489, https://www.xfinity.com Spectrum: (Charter/Time Warner) 1-(866)-654-1456, https://www.spectrum.com/ DISH Network: 1-(800)-333-3474, https://www.dish.com Verizon (FiOS): 1-(800)-837-4966, https://www.verizon.com/?lid=//global//residential

Streaming devices: Apple TV HD: https://www.apple.com/shop/buy-tv/apple-tv-hd/32gb Amazon Devices (Amazon Fire Stick, Fire Cube, Fire TV Cast): https://www.amazon.com/Amazon-Fire-TV-Fami- ly/b?ie=UTF8&node=8521791011 Google Chromecast: https://store.google.com/us/product/chromecast Roku Devices (Roku TV, Streaming Stick, Express, Ultra, Premier): https://www.roku.com/products/players

Streaming services: Netflix: https://www.netflix.com/ Amazon Prime Video: https://amazon.com/video Hulu: https://www.hulu.com/ Hulu + Live TV: https://www.hulu.com/live-tv YouTube TV: https://tv.youtube.com/ AT&T TV: https://www.att.com/tv/ AT&T TV Now: https://www.atttvnow.com/ Philo: https://www.philo.com/ Fubo TV: https://www.fubo.tv/ Sling TV: https://www.sling.com/ CBS All Access: https://www.cbs.com/all-access/ Disney+: https://www.disneyplus.com/

Photo credits: Picture of TV on page 3 courtesy of Max Pixel: https://pixabay.com/illustrations/television-tv-ears-sound-picture-3988835/ Picture of satellite dish on page 3 courtesy of Max Pixel: https://www.maxpixel.net/Satellite-Dish-Satellite-Receiver-Re- ceiver-70409 18 CUB’s Guide to Cutting Your TV Costs CUB’s Guide to Cutting Your TV Costs 19