Saving Money on Cable TV and Internet

We pay $163 for cable TV and high speed internet service.  That bothers me, because, for every month we pay $163 now, it means one month we won’t have $163 after we retire.  When my wife and I get too old to work and only have a fixed income, we will probably wish for all those frivolous dollars we once spent.

I know quite a number of young people earning little and older people, either retired, or near retirement age, earning little, that have given up cable and/or Internet access.  I’ve also read it’s one of the first bills to cut when families are downsizing because of the economy.  A lot of young people I know never seemed to develop the cable addition that folks my age have acquired.  So they will spend big dollars on cell phones and Internet, but scrimp on TV.  I also know a number of people now that have no cable TV at all.  Others have given up house phones and Internet too.

If you combine the house phone bill, cell phones bills, Internet access and the cable/satellite TV bill, telecommunication becomes a huge piece of the monthly budget pie.  In our household, it’s bigger than the utility bill or car notes we had in the past, second only to the mortgage.  Last night I watch ABC World News, three episodes of Weeds from a Netflix disc, and recorded an old black and white movie off of TCM.   We pay $4 a day for our cable.  Much of what I watch could be had from over-the-air TV or Netflix.

Free TV

I have helped a number of women in their fifties set up digital TV boxes so they could watch free TV.  This is the absolute cheapest way to have TV, but you only get a handful of channels.  Depending on signal, indoor antennas can be easy to use or annoying.  So far I haven’t met anyone wanting to spend the money on an outdoor antenna.  If you’re lucky, you can get ABC, CBS, NBC, PBS, FOX and several other digital stations in HD.  This free option does make life much simpler.  And when the antenna works well, I’m very impressed with the quality of the picture.

Free TV + Netflix

Upping the budget to $8.99 a month, you can get a Netflix subscription and see nearly all movies and a good selection of premium cable shows like Big Love, Mad Men and True Blood, but just delayed by several months.  Most cable TV shows now come out on DVD, so if can wait for your favorite shows, you can watch them in order and without commercials.  This offers the best selection for the least money.

Free TV + Netflix + Internet

If you’re willing to budget another $25-50 for DSL or cable Internet, you can expand your options even more.  If you must have the Internet, then this option is a no-brainer.  Trying to find low-cost Internet access is hard.  There are $10 monthly modem services, but they require a house phone, and many people have ditched landlines to save dough.  I have heard it’s possible to get low-cost DSL without local phone service but it’s a difficult option to arrange since AT&T and Baby Bells push bundled services.  And if you crave the Internet, then you usually crave fast Internet, and that’s about $50 a month.

Now, if you have fast Internet, and you’re willing to be a Do-It-Yourselfer, you can buy or build a Home Theater PC.  This gives you a DVR plus access to streaming TV and downloadable video, including high definition videos.  Think of this as free, on-demand, Internet TV.  Hundreds of thousands of people are experimenting with this now, and cable companies are getting worried.  Internet video quality is constantly improving, with HD becoming common.

With free services like Boxee, Miro and Vuze and a HDMI or DVI cable from your laptop or computer to your HD TV, you can develop your own free on-demand TV library or select from a large lineup of streaming network shows. 

Video is quickly becoming the new medium for communicating over the web.  People have been watching video on their computer screens for years, but now people are finding ways to make their computers into set-top boxes connected to their TVs and controlled by remotes, so they can watch TV as God intended, from the comforts of their La-Z-Boy.  

Cable and satellite TV providers are worried that the Internet will soon provide people with all the TV they want and they will be out of business.  You’d think they’d want to offer a better service for less money to compete.  Follow this link to a Google search for many articles about living without cable TV.  A lot of people are doing it.  I like the concept of cable TV, so I won’t be abandoning it just yet, at least not until season 2 of True Blood is finished.  I just want to find ways to bring down the cost of cable, but if I can’t, I’ll consider abandoning it completely.

Cable/Satellite TV “a la carte”

People often wonder why they can’t lower their cable bill by just buying the channels they love to watch.  Most people watch a handful of favorite channels but have to wade through hundreds of TV and other cable services they just don’t want.  I get 200+ channels but probably watch less than 12.

There’s two obstacles to this problem.  One, if people bought only what they wanted, many cable networks would go out of business, so cable providers fight this option.  Second, as long as cable companies must provide analog channels, those stations you get when you plug your cable wire directly into your cable-ready TV and scan the channels, then they can’t sell channels separately.   When cable companies go to 100% digital, a la carte buying will be technically possible.

Right now, a la carte channel buying is not possible, so it’s only a dream option to save money.

My Dream TV and Cable Internet Service

I don’t mind paying for what I want.  I think my current $163 cable/internet bill is too high!  It should be closer to $75.  What I would love is a perfect convergence of TV and Internet.  I want to buy a la carte just the exact TV networks I want, and I want to own my own equipment so I can customize it.  I’d like a Home Theater PC that played and burned DVDs/Blu-Ray discs, was a DVR recorder for 2 terabytes of shows, played all my own digital media, including MP3 songs, JPG photographs and any collected videos I made or bought, plus streamed music and videos from the Internet.  That means my entertainment system would consist of a TV, home theater PC and speakers, all controlled by one remote.  That would simplify my setup greatly, and save electricity.  Right now I have:

  • HDTV, with remote
  • DVR/cable box with remote
  • Receiver with remote
  • Media player with remote
  • Blu-ray player with remote
  • CD/SACD player with remote

My wife bought me a very nice Logitech programmable universal remote, but I never liked it.  Life was so much easier back when I was growing up.  We had one TV, three channels and no remotes.  Life has gotten too complicated.  I dream of living with one remote and no more than 12 fantastic high-definition TV channels with no damn commercials.  Infinite variety could come from Internet TV.  With fewer TV networks, the quality of TV production should go up.  I would get better shows for my time and money.

JWH – 8/14/9

11 Responses

  1. A few months ago when we read Total Money Makeover by Dave Ramsey and started to follow that plan in order to #1 get out of debt and #2 save for retirement (making up for lost time), we looked at all the ways we could save money. Without going into a lot of details out of the plan and driving you crazy with an info dump, the second step in the plan is to put together a reasonable but tight budget that allows you to live but frees up as much money as possible to attack your debts, from smallest to largest, one debt at a time while maintaining minimum monthly payments on the rest. As we looked at ways to free up money we made a number of changes. One was that I got rid of cable internet service for dsl internet services which saved me about $30 a month. We then discontinued our satellite tv service (in July) which saved another $40 a month. My DSL is thankfully as fast as my cable was so I’m not suffering any loss there.

    I have had a subscription to Netflix for years and when a friend gave me an X-Box (his extra one) for Christmas I paid the $50/year cost for the live Gold package and we watch tons of ‘watch instantly’ television shows and movies through the X-Box.

    We also use the library A LOT. We’ve been making our way through the rather excellent Foyle’s War and, since that puts us in a WWII mood, we’ve been watching a bunch of Nova, Secrets of the Dead, and History Channel documentaries from the library on various aspects of the war.

    We’ve always been a family that watches little ‘television’. We watch House and Fringe faithfully, but little else. We tend to watch our TV when it comes out on DVD or watch a lot of movies. So while our tv is on most every night, it is rarely actually on so that we can watch a broadcast.

    As football season is approaching we are going out tomorrow to pick up the digital box so we can have ‘free’ tv. I know I’ll miss the games that will only be on cable and that will be a little bit hard, but the progress we are making on our debt and the enjoyment we are getting out of accessing our local library far outweighs having that expense.

    Someday I imagine we’ll get satellite or cable back, but not until we are debt free.

  2. Hi Jim! it seems like you are paying an awful lot just to see True Blood! A little patience and wait for the DVDs wold save money… Did you read the books? I’ve read two, they are good, I didn’t get to see the series yet. Right now I’m about to start watching Dexter, after catching up with House(excellent! strange you didn’t mention it in your wholesome TV post.. I want to grow up and be like Greg House ;-)) and Prison Break (ok, as long as you don’t think much about it). I also watch Dollhouse and Lost.

  3. Carl, I’ve become a big fan of watching TV on DVD. I like having a favorite show to watch each evening before going to bed, like reading on a novel. Currently, I’m going through Weeds. Before that it was The Tudors, and before that it was Battlestar Galactica. What I’d miss most about dumping cable is all the documentaries, but thanks for reminding me I can get documentaries at the library. Or I guess they’d be on Netflix too. I recently started going through The Universe series on Blu-Ray via Netflix.

    Ignacio, I do watch a lot of TV, so I mostly get my money’s worth, but with some patience, I think I could be happy getting all my TV on DVD. My wife isn’t quite ready to let me pull the plug, but I’m thinking more and more about it. There are so many blogs about folks who have abandoned cable that it makes me want to try it. I don’t want to put the cable companies out of business, people need jobs, but it just irks me that I’m paying for so many channels I never watch. What’s cable like in Argentina, and is it very expensive?

  4. Do it Jim, do it!!! :)

  5. [...] and other cable companies need to study what people really want.  Ever since I wrote “Saving Money on Cable TV and Internet” a bunch of my friends have come up to me and told me they were thinking about the exact same [...]

  6. [...] I bought a Toshiba DR570 DVD Recorder to be my poor man’s DVR.  After theorizing about saving money by giving up cable TV, I quickly learned that I missed having a DVR after living without cable.  I love  having [...]

  7. Hi,

    I greatly enjoyed looking through your blog at “http://jameswharris.wordpress.com/2009/08/14/saving-money-on-cable-tv-and-internet/” and found an informative one for my theme related topics.I have also some dish tv,satellite tv,music related sites and blogs. So,I think it would be beneficial for both of us if we will join in a community and become link partners to each other which will help your blog/site in getting more Google values.If you are interested then please contact me at-
    ami.roberts86@gmail.com

    Thanks
    Ami

  8. excellent article. we use some sites like hulu to also get our tv. its amazong but weve cut our cable bill by $100!

  9. My wife and decided to drop premium channels and stick with basic cable and internet. We are saving $100 a month and are not missing a thing. Should have done it sooner! We have Netflix and ESPN3 on my Xbox 360 for sports. I can hook up my laptop directly to the TV via HDMI for other stuff.

  10. I got sick of paying over $200 a month on my cable bill. As a owner of a small video production company, I decided to create some solutions that help me save money on Tv, Internet, home phone and Dvr services using the latest technology on the market. I show what products/technologies/tricks that actually work. Check out my video at http://www.savemoneyoncable.com. Thanks, Rod

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 1,186 other followers

%d bloggers like this: