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 chan- nels our bloated cable packages offer. Video streaming services can allow you to watch mov- ies 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 recom- mend 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 differ- ent 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.