The Landscape of Viewing Services – Still Paying for Cable?

by Suba on July 30, 2011 · 2 comments

There is a lot happening on the frontier of viewing services, such as Netflix and its competitors.  How much value is there for the average customer, though?  You may have to sacrifice a little to save a lot.

The High Cost of Cable

You might laugh at those that are still paying for (expensive) cable.  Yet, as opposed to something like writing checks (instead of online banking, of course), there is something to be said for cable.
Cable television, along with satellite television, still has a stronghold in some ways.  Getting premium networks, movie channels, and sports in high definition isn’t that easy – though debatable – with alternative means.  However, there is a reason that other services are on the rise, grabbing customers left and right.

Cable is expensive.  According to a study by Centris, the average cable bill was $71 in the second half of 2008, increasing 7.5%.  CNN Money reports that the average annual hike is 5%, which means that the “average” bill will exceed three digits in little time.

The “Other Services”

Netflix leads the alternative services, even though customers are angry due to the recent 60% increase for an “average” plan.  With impressive service and a not-too-bad Instant Play library, comparing a cable bill to an under $25 a month (3 DVDs, unlimited, and Instant Play) Netflix subscription is not much of a contest.

Bring in the other boxes and services.  Walmart’s purchase of Vudu has resulted in that service being live – yes, you can rent movies on Walmart.com (it was only a matter of time…).  Grab a Roku and you can stream Netflix, Amazon, and other popular on-demand services.    Even a stop at your local Redbox for a movie or video game is quite inexpensive ($1 plus taxes a night).

No – it doesn’t stop there.  Services like Hulu are quite nice if you’re worried about missing your favorite network shows.  Many networks allow you to watch them online for free.  Even one of the more difficult things to cope with – sports – is manageable due to services like ESPN3 and sports-specific packages (i.e. NHL/NBA/MLB on your Roku – one season for two months of a cable bill, roughly).

What is the Smart Option?


For some people, the benefits of ditching the cable bill are marginal and not worth the trouble.  Admittedly, it is nice catching the shows, movies, and sports you love, along with a HD-DVR and other perks.  However, is approaching or exceeding three digits – “good?”

You can watch Pawn Stars and American Pickers online, catch network shows on Hulu, watch sports on ESPN3 and others (Sunday Night Football, TNT broadcasts, etc.), and then enter some inexpensive choices – Netflix, Amazon, iTunes, Redbox, Vudu, etc.

It doesn’t take a math major to realize the savings.  Don’t get me wrong – there is no correct choice.  However, comparing some of the numbers is revealing.  The future of these services is promising as well, with chatter regarding advancements in what customers want most – more streaming options.

Perhaps the future is upon us.  A handful of these services could equal half of your cable bill.  For broke professionals – and rich ones – perhaps you can get more for less.

Have you used any of these services yet?  What have you thought of?

This is a guest post from Brian at Home Insurance Comparison, an Australian  personal finance blog whose goal is to help buyers know what they should compare when it comes to home insurance.

Suba

Suba is the editor of Broke Professionals.

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Related posts:

  1. 3 Alternatives To Paying for Cable
  2. 10 Reasons to Get Rid of Cable

{ 1 comment… read it below or add one }

1 Dining Out Challenge August 7, 2011 at 11:07 am

I have trimmed my cable/internet bill as much as possible and now have it down to $66 a month. In a few more months, I plan to cut the cable entirely, at which time I will switch to something like this. I don’t watch tv much now, so it really is not worth it to keep it.

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