[FROM GEEKS LIFE]
"Cord cutting" is the term given to the practice of cancelling your cable TV subscription and instead relying on internet streaming and/or over the air (OTA) broadcasts for your viewing needs. Depending on your TV viewing requirements, this has the potential to save a significant amount of money for a minimum amount of pain.
Should you cut the cable TV cord?
There are a number of things to consider before cutting the cord. Before calling your cable company and canceling your cable TV subscription, there are several questions that you need to ask yourself. Being unable to make the accommodation to any one of these could be a deal breaker for you.
First and foremost would be examining the internet connection from your internet service provider (ISP). Can it handle the streaming load and are there costs considerations such as bandwidth caps that may come into play? The streaming requirements vary from as little as 500kbps for the lowest quality Netflix streaming to 25Mbps for Netflix UltraHD (4K) video per stream. Other content sources fall within these extremes. Realistically, if you are watching standard HD broadcasts, you should allow approximately 5Mps per active stream on top of any other internet activity your household is engaged in. Two people watching TV in different places at the same time means 10Mbps plus whatever the PCs, tablets, phones, etc are doing. You can get by with as little as 2Mbps per stream but having dealt with that in hotels, I would say expect some buffering if you try. Also, video streaming needs somewhat sustained speeds. Your devices typically make some adjustments for slow periods but if your ISP is very unreliable with regards to maintaining advertised speeds, expect a lot of buffering. Finally, a 5Mbps stream downloads roughly 2GB of data per hour. If your ISP has bandwidth caps and enforces them, consider your viewing habits before taking the plunge. Bottom line: If you don't have or can't get a fast enough sustained connection or if you watch a lot of TV and ISP bandwidth caps are enforced, then you should probably stick with cable.
Second, look at your internal network. Do you have wired connections or wireless (wifi) connections? Most households have wifi and the wifi your ISP's router comes with may be an old b/g connection which has a maximum bandwidth of 54Mbps. While this may seem sufficient, your real speeds may be considerably lower depending on the clarity of signal and the location of your devices with respect to the router. If you have an old b/g wifi connection and you expect to have multiple simultaneous streams, consider using wired connections to your media streamers where you can (often you can't) and also consider upgrading to wireless N or greater. It can work just fine with wireless b/g. It's just not a slam dunk and you may have more moments of buffering due to your own (not your ISP's) network.
Third, where are you located and what do you watch? There are a few areas where cord cutting options are weak. Some of these can be mitigated if you live in an area where you can receive OTA broadcasts. The two biggest gaps in my experience are live sports and live news. If you live in an area where you can receive OTA broadcasts, then you will likely be able to receive some live news and sports via this route. Otherwise, your options become somewhat limited and can be pricey. If you watch a lot of cable TV shows as opposed to network TV, that can also get into pricey territory depending on when you want to view your shows.
Finally, when do you want to watch your shows? By this I mean are you someone who has to watch a show as soon as it broadcasts (an appointment viewer), shortly after it broadcasts (next day), or are you willing to wait perhaps as long as a year before viewing? If you are set on being an appointment viewer and you watch a lot of cable shows or have no OTA access, then you need to stick with cable. If you are willing to wait a long time to view your shows, you will save the most money. If you fall in between, then the savings, if any, will depend on your viewing habits.
Content Options
There are numerous sources of content out on the internet and I couldn't possibly cover them all. I briefly cover several that I am more familiar with.
Netflix
For your bare bones content, Netflix is pretty cheap, especially if you need multiple streams (as I do). They have a large collection of old TV shows and some (mostly B level) movies. If you have kids, there is also a decent amount of children's programming. Netflix also has some very good original content (House of Cards, Orange is The New Black, etc).
Hulu Plus
For keeping up with current network TV in the absence of OTA channels, Hulu Plus is best. Most of the major broadcast networks (except CBS) have their shows available here next day if you are a Plus subscriber. CBS has its own subscription service, CBS All Access, which rounds out the broadcast networks in terms of having new episodes available next day. If you are the type of person who can wait up to a year to view an episode, then a Hulu Plus or CBS All Access subscription may not be necessary. Typically, TV seasons wind up released in their entirety on Netflix or Amazon (or both) shortly before the next season begins.
Amazon Prime
Bridging these two is Amazon Prime which also has a lot of free older TV, movie content, and some original programming, but in addition allows for the purchase of current TV episodes and the rental/purchase of newer and more A-level movie content.
Other Options
There are additional options for purchasing/renting TV and movies such as Vudu, Google, and Apple but the above are the main ones for off channel subscription content. When I've comparison shopped for TV and movie content, I have found that Amazon tends to be at or below the cost for Vudu or Google. I believe Vudu, however, does offer some higher resolution offerings.
Recently, we have started to see movement by some cable content providers to offer some of their channels without a cable TV subscription. HBO and now Showtime both have standalone subscription packages available and there is also Sling TV, which offers a "cable lite" of some cable channels over your internet connection.
Content is weakest in terms of live content. Live sports programming choices are fairly limited without a cable subscription. There are some options available for baseball, hockey, basketball, and (I think) wrestling but live NFL football is noticeably absent. Even the aforementioned choices may have some limitations in local content due to blackout restrictions. Sling TV does have some sports channels, including ESPN if you are a sports nut (I'm not). The same situation is also largely true of cable news networks. There are a number of free overseas options that are available, including CNN international but for US cable news networks (CNN, Fox, MSNBC), your pickings are more slim. CBS has introduced an online news channel with live content during part of the week but it's not quite at the same level. CNN US is available via a Sling TV subscription. If you want live Fox News or MSNBC, it's basically cable or nothing (nothing legally broadcast, anyway).
Finally, if you are in range of OTA channels, get a decent HDTV antenna to get the best possible reception. I have found Mohu Leaf antennas work pretty well compared to other indoor antennas I have tried. I picked up a decent number of channels with the unamplified version of their antenna but the amplified version improves upon that. I am about 20-30 miles away from most of the broadcast stations in Atlanta and pull all the network stations in just fine with the amplified version of the Mohu Leaf.
Equipment options
When talking about equipment, there are some trade offs between most versatile and ease of use. A PC will offer you the most options in terms of content and versatility. However, to get a TV-like experience with a PC requires considerably more work (and sometimes expense) to set up and operate than some of today's set top boxes and sticks. If you have family members who are not that tech savvy, they may rebel if you have not done a very good job at setting things up. Also, when dealing with multiple TVs, it can become a much more expensive proposition. On the opposite end, a smart TV negates the need for additional boxes and remotes but your content choices are typically more limited and when support for the "smarts" stops, it may be necessary to replace what otherwise may be a perfectly functional TV.
My choice in this area is to use dedicated streaming media players. There are a number of different options in this regard. I have to date used Roku, Google Chromecast, and the Amazon Fire TV Stick. Roku, Chromecast, and Fire TV are among the bigger players (Apple TV being another) and there are new ones being introduced. I will give a brief summary of the three I have used and am familiar with.
Chromecast
The Google Chromecast is the cheapest and simplest of the three. It's a stick that plugs into an HDMI port on your TV and uses your wifi connection. It works best from an Android phone or tablet where you cast from a supported app and control playback from that app. You can also cast from a web page from a supported browser (usually Chrome) on a PC where, again, you control playback from the web page you are casting from. There is no remote for the Chromecast itself. The pros are it's cheap and pretty simple. The cons are you need another device to pretty much do anything and app support is limited (though improving). Amazon for content, for example, is pretty much no deal, here. This is what I typically use when I want to send something from a web page and occasionally a phone to the TV, but I really don't use it much.
Fire TV Stick
The Amazon Fire TV Stick is slightly more expensive but has a remote and there is also a remote app for smartphones. The Fire TV stick uses Amazon's Fire OS and supports numerous apps. So, in addition to Amazon's content, other providers such as Netflix and Hulu can be accessed and it also supports some games. The pros of this device are it's small, fairly speedy, and versatile -- more versatile than the Chromecast. A big plus for travelers is that its wifi setup supports captive portals, meaning it will work easily in most hotels that have TVs with HDMI ports and wifi. This is my device of choice for traveling. (Note: Some hotels keep their wifi connection at 2Mbps. The device is still usable in that case but expect occasional buffering). The main con is that the device highlights the Amazon content to an annoying degree and it lacks support for some content, notably Google Play Movies and TV. There is a YouTube app but it is not the Google version (I believe it is a wrapper app for the mobile web page). Amazon also has a larger, more powerful (and more expensive) version of Fire TV with broader game support and a gaming remote.
Roku
My primary choice in the home for internet streaming is the Roku. There are numerous models. There is a stick model similar to the Fire Stick, a model that allows you to use older TVs without HDMI ports, and models with support for some games and a remote with a headphone jack (awesome for when kids are running amok while you are trying to watch the latest episode of The Flash). The games are not as sophisticated as you can get with the Fire TV but you have the widest array of content choices with Roku. Netflix, Hulu, and Amazon are all supported as well as Google Play Movies and TV, Vudu, and Hulu. In addition to the regular Roku approved and supported content, the device also allows for private channels which may include some "interesting" content. I also find it the simplest of the three to navigate and use. The main pros of the device are the ease of use and the greater availability of content. Other pros which are specific to certain models is support for older TVs (my living room TV is an older projection TV with no HDMI ports) and the headphone jack remote. The main drawback is they are pricier (from slightly pricier to much pricier) than Chromecast and the FireTV Stick. The gaming is also pretty basic and not as good as with Amazon devices.
OTA DVR
Another area of equipment which I have only recently added is an OTA DVR. This is a box which will allow you to view and record OTA content for later viewing. For some people, this can eliminate the need for some subscriptions like Hulu Plus. There are a number of different flavors of this type of device and they vary in price depending on features. Some devices have multiple tuners. Some include the DVR storage and others require the storage be purchased separately. Some devices only display to an attached device while others may broadcast to other devices. I purchased a Tablo OTA DVR (4 Tuner version). This device did require separate addition of storage but supports broadcasting to other devices over the network. One of the advantages to this latter feature is I can then place the device and the antenna in the house where reception is best but view OTA content on any TV anywhere in the house. As it is a recent purchase, I have not used the device much so cannot attest to its reliability over time yet.
Taking the Plunge: Costs, Savings, Changes, and Issues
Calculate how much you are spending now on your TV entertainment and look at what equipment, streaming subscriptions you already have versus what you expect to need. Looking at what you have is fairly straightforward. What is your cable bill and which equipment is theirs? That is going away. Do you already have any streaming accounts or media equipment you can use after cutting the cord? Those don't get added in. Add in your additional equipment costs as a one-time expense and additional subscriptions as monthly expenses. This was my initial situation in 2011 when I switched:
Before:
Cable TV for 5 TVs with DVR. No movie channels but a foreign language (Filipino for my wife) option: 140 dollars/month (roughly), 1,680 dollars/year.
Netflix 3 DVDs a month with four streams: 25 dollars/month, 300 dollars/year.
Amazon Prime account (includes two simultaneous streams): 79 dollars per year.
One Roku Device: 100 dollars (one time expense).
Total yearly cost: 2,059 dollars each year + 100 dollars one time cost.
Initial cable cutting decisions:
I left Netflix streams at four as I expected there would almost never be the situation where four people would be using Netflix at once. I purchased two Hulu Plus subscriptions, one for living room TV and one for my bedroom. I purchased a couple of OTA HDTV antennas, one for living room TV and one for bedroom. With this, most TV was covered. There were some shows I either wanted to watch right away and/or wanted to keep a copy of and I purchased these on Amazon. There was a Roku channel that had a lot of Filipino content so no need for anything extra there.
Immediately After:
Netflix 3 DVDs with four streams: 25 dollars/month, 300 dollars/year.
Amazon Prime: 79 dollars/year.
Hulu Plus (2 accounts for two simultaneous streams): 16 dollars/month total, 192 dollars/year total.
Four more Roku Devices: 100 dollars each/400 dollars total (one time purchase).
OTA Antennas (2): 60 dollars each, 120 dollars total (one time purchase).
Amazon purchases for shows not on Hulu/Netflix: roughly 250 dollars per year for about a half dozen shows full seasons. I used first full year or 2012 here for cost.
Total yearly costs after switching: 821 dollars/year subscription/purchase costs + 520 one time costs.
Savings on subscription costs: 1238 dollars/year. First year savings: 718 dollars.
Changes/issues since switching:
Since initially switching, there have been some changes. Netflix separated DVD and streaming plans and I dropped the DVD option. My Netflix costs have dropped by about half.
I replaced the initial Roku, which was one of its oldest models, with a Roku 3 (100 dollars).
I added PlayOn server software to my Windows PC and added a Roku channel to play it on Roku. I purchased the lifetime subscription for the server software which was about 80 dollars. This allowed me to pull in some website content that was otherwise not available on Hulu/Netflix and I might otherwise have considered purchasing on Amazon. Since then, options have improved and I almost *never* use this. However, you can use this to run regular Hulu (free version) on a streaming device via the PlayOn software so some people may find this a useful option. Plex is another alternative in this space but I found PlayOn a little more useful for web content. Plex seems better suited to streaming local content. PlayOn requires a Windows PC as a server. Plex server operates on multiple platforms, including Linux, but a lot of Plex plugins do not work on the Linux version.
Amazon has risen its Prime cost to 99 dollars per year but there is a lot more content now.
Roku entered into a deal with Dishworld International which made the Filipino Roku channel I was utilizing go away. Initially, we were paying 21 a month for a replacement with Dishworld but my wife now has found YouTube on Roku and/or Chromecast and watches a lot of Filipino content there. So we dropped that subscription.
CBS, which was largely absent on Hulu and the only broadcast network for which I could not readily get next day content (without using PlayOn) introduced CBS All Access for 6 dollars a month. I have one subscription to this. This is the main reason why I no longer use PlayOn.
Sling TV offers some cable channels for 20 dollars/month with a few add on packages for 5 dollars each. I have purchased one of these to get CNN US (I missed having a US cable news network) and AMC live (I love The Walking Dead). There are some sports channels with Sling as well for those so inclined. Other than CNN US, this doesn't really *add* much for me so this would be the first thing I dropped if I needed to cut costs.
I also added a Tablo 4 Tuner DVR and a lifetime subscription (one time cost: device 300 dollars, lifetime subscription 150 dollars) and attached an external hard drive I already had. This also was not *necessary* but means I could now send OTA TV to any TV in the house and added DVR capabilities for OTA broadcasts. Realistically, this makes CBS All Access somewhat unnecessary and Hulu Plus less necessary but I have not dropped anything there as of yet.
I have also added Showtime to one of my Hulu subscriptions just this month. I am not sure if I will keep it or not.
Current costs:
Netflix (4 streams) - 12 dollars/month, 144 dollars/year.
Amazon Prime (2 streams) - 99 dollars/year.
Hulu (2 streams, 1 with Showtime) - 25 dollars/month, 300 dollars/year.
CBS All Access (1 stream) - 6 dollars/month, 72 dollars per year.
Sling TV - 20 dollars/month, 240 dollars/year.
Amazon purchases (2014) - 260 dollars/year.
Additional one time costs over four years: 630 dollars.
Total one time costs over five years: 1050 dollars (average 210/year)
Current yearly costs: 1,115 dollars/year
Current yearly costs + average annual one time costs: 1,325 dollars/year
Even with my added and sometimes unnecessary costs, I'm still saving close to 700 dollars per year over what I was spending five years ago.
Do you have any experiences with cord cutting you would like to share or questions about cord cutting? Please let me know in the comments section below.
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