New streaming services can deliver your favorite TV shows for a lot less money than cable, and for years American consumers have been experimenting with “cord cutting” to get a better deal. In fact, close to 800,000 people dropped their traditional pay TV package in the first three months of 2017 alone, according to the research firm Moffett-Nathanson.
The jettisoning of conventional TV services has picked up steam as viewers have gained more options — from familiar outlets such as Netflix to streaming from Sling TV, HBO, and others. But while more choices are welcome, it can be difficult to navigate through all the options — especially since they often come with lots of industry jargon.
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Even the term “cord cutting” is misleading. It implies you can dump your cable company altogether. The reality is you’ll probably still need it to provide Internet service. Here’s a look at some of the choices for TV viewing:
Cable TV. You know these guys — companies such as Comcast, Charter, and Verizon that charge monthly fees, ranging from occasional promotional rates as low as $30 per month for TV to way more than $100, depending on things like premium channels and DVR storage. If you like familiar, programmed television — as well as live local sports and news — it’s hard to get around a traditional pay TV package. These same providers also supply Internet and landline phone service.
Satellite TV. Satellite companies such as DirecTV and Dish provide paid TV services, just like cable companies, but you’ll probably need a separate line to your home for Internet service. Monthly prices usually range from $50 to $125, depending on the amount of programming.
Online cable replacement. Services such as Sling TV and Hulu With Live TV compete directly with cable by offering live channels online for a monthly fee of about $20 to $40. But the choices can be limited. You can get a smattering of broadcast (such as ABC and NBC) and cable-type (Bravo, CNN, HGTV) channels. Premium channels (HBO, Showtime) may be available for an added fee.
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Single-channel websites, apps. You can subscribe to some TV channels’ websites and apps to watch just their shows, without signing up for a larger TV package. CBS, HBO, Showtime, and Starz all offer this option. Some channels have apps that let you watch their content only if you are already paying through a cable or satellite subscription.
Subscription streaming. Netflix, Amazon Prime, Hulu, and other smaller players charge a subscription fee, usually around $8 to $10 a month, for unlimited viewing of all their TV and movie content, including original shows such as Netflix’s “House of Cards.” You can watch on a computer, “smart” TV, or mobile device.
Pay-per-view. Services such as iTunes and Vudu let you rent or buy single titles — a movie, one episode of a show, or a whole season. Amazon Video offers this option, too. (Note, Amazon Prime members, that not all of Amazon’s content is included with your subscription.)
To learn more, visit www.ConsumerReports.org.