Americans collectively spend billions of dollars for cable and satellite television reception each year. In some localities, cable bills are $80-$100 per month. It is not unusual for a family to spend over $1000 per year on cable TV bills.
Since a large majority of people have chosen to subscribe to cable or satellite TV, at first the situation appears to be an affirmation of Chris Anderson’s Long Tail Theory. Cable and satellite television companies are offering hundreds of channels with niche content and people are willing to pay for it. But what are people really watching? The next time you open your checkbook to pay for cable or satellite service, think about the channels you mainly watch. You just might find that you are paying a corporation to watch programs that are broadcast completely free-of-charge!
Each of the top ten shows on free over-the-air TV channels are typically more watched than the top rated cable program. The age of broadcast television is clearly not over, as the Super Bowl was the second most watched program of all time (second only to the season finale of M-A-S-H).
The Top 10 Broadcast Shows (1/28-2/3)
- FOX’s Super Bowl–97.4 million viewers
- FOX’s Super Bowl Post-Game–63.9 million viewers
- FOX’s American Idol (Tuesday)–28.2 million viewers
- FOX’s House (Sunday)–29.0 million viewers
- FOX’s American Idol (Wednesday)–25.6 million viewers
- FOX’s House (Tuesday)–22.6 million viewers
- FOX’s Moment of Truth–17.6 million viewers
- ABC’s Lost (9:00 pm)–16.1 million viewers
- ABC’s Lost (8:00 pm)–13.2 million viewers
- CBS’s NCIS–11.8 million viewers
© 2007 Nielsen Media Research, Inc. All Rights Reserved.
The Number 1 Cable Show (1/28-2/3)
- CNN’s California Democratic Debate–8.3 milion viewers
© 2007 Nielsen Media Research, Inc. All Rights Reserved.
While the number 1 subscription program , the CNN Democratic debate with 8.3 million viewers, attracted less audience than did the 10th ranked free program (CBS’s NCIS with 11.8 million viewers), I do not doubt that some people get their money’s worth from cable or satellite. If you have a strong niche interest satisfied by the history channel or ESPN sports channels, it probably makes sense to continue paying for your cable or satellite subscription. However, I believe that there are a lot of people other than myself that can get along just fine with free over-the-air TV. Do you really need the weather channel or 24 hours-a-day news when you have Internet access?
Additionally, consumers can afford to purchase the occasional popular program produced by HBO through Amazon.com and still spend a lot less than they would on annual cable or satellite subscription fees. Check out these hits offered by Amazon.com:
[Updated April 2009] I highly recommend this antennae from Amazon.com. Join the Low-Tech movement and give free TV a try. Just think of all the money you’ll save!
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21 Comments
Although I can agree that customers bills do in fact reach that 80-100 price point and should definitely reconsider their monthly expenditures, some customers have just basic cable which in most cases only provides local channels without the need of rabbit ears for a clearer crisper picture. You also mention that instead of shelling out cash to Cable Providers for channels like HBO or Showtime, consumers should instead just buy the box sets of the shows they pay for. Again, you’re dead on if the customer is a fan of that particular show, but then again, if they don’t have access to HBO, then why would they consider buying a box set of shows they’ve never seen. For that matter why would they continue to care about a show they stopped watching in lieu of waiting for a box set to come out? I will say that I can be biased on this considering the channels I watch on cable are in the extended basic and digital tiers of my system. However, I will agree that consumers spend way too much on TV and not enough on the things that matter.
Mage, that’s a good point: why would someone buy a box set of a show they’ve never seen? …that’s probably why I haven’t earned any money from those Amazon ads
I was thinking that non-cable subscribers may watch cable at a friend’s house, or perhaps hear the buzz about HBO shows on over-the-air programs or in magazines. The wait to watch a show once it’s released on dvd would be a sacrifice.
As far as basic cable, you’re right that it can be cheaper than $80… and it could have better reception depending on where you live, but there are also cable outages which negatively impact subscribers, especially if they don’t have an antenna hooked up as backup.
Thanks a lot for your thoughts!
We chose not to have cable when we were poor grad students, and never subscribed afterwards. We can certainly afford it now, but what a waste of money, and our precious time. Our extended family thinks we are nuts. Our kids are just now starting to realize that we are different than their friends (ages 11, 9, 5, 5). But my 2 older kids rarely watch TV other than an occasional DVD and are great readers. My younger kids watch PBS, or selected videos from the library. The kids never beg for toys from commercials they don’t see. They don’t know who Hannah Montannah is, or the Cheetah girls, or Mtv. But they are not deprived nerds in school with their peers. They find other things to talk about, and realize other things are more important.
We own a business, and I am surprised at how much our lowest paid workers will spend a month for their cable, cell phone, satellite radio, internet and other “luxury services.” When someone making $12/hour (or less) has a $120/month cable bill and $180 cell phone bill, I think they need to recheck their priorities.
Somehow we all survived without it all 20 years ago. I’m not saying a basic cell phone and internet is not a must now, but 350 premium channels, Tivo, fancy ringtones, internet phones, etc. can nickel and dime a basic income person to bankruptcy.
Arbie, thanks for writing. I cannot agree with you more. I’ve also encountered many friends who are shocked when they learn I don’t have cable. Have a great day.
Hi there! Found your blog on yahoo – thanks for the article but i still don’t get it.
You know, I was considering what you wrote for a minute. I was actually ready to buy some bunny ears for the TV. But then I realized.. I’d be missing out on so much: I buy Pay Per View martial arts events, I rent movies to watch with my fiance when we’re not studying, we use Oxygen on Demand to turn the TV into a karaoke device (who needs a mic?!), we watch Nick at Nite at night to watch old episodes of Fresh Prince before we go to sleep, the list goes on and on. While your arguments are quite valid, I find there is more than simple TV programs at stake here. It is quality time with my fiance and dog, sitting on the couch or laying in bed, and giggling until we pass out for work and school the next day. (and we hit the gym 1 hour a day too =X) (figured I’d add that so we don’t seem like couch potatos hahaha…)
Over the past 35 year or so, I’ve spent about $350.00 on my antenna. I get about 15 channels of analog, and 13 HD and several standard definition digital channels.
I can’t see buying cable.
Volt, yes, there is an element of sacrifice to the move back to free tv. I know last year, there were a lot of people at work talking about some Discovery Channel nature programming that I obviously didn’t have access to. For some, the cost of cable is worth the benefit. For others, giving up some programming is not that big of a deal. Thanks for your thoughts.
Drew, glad to hear about someone else with an antenna. I think a lot of people these days assume everyone has cable or satellite. Thanks a lot for your comment.
Regarding TV use – I have been low-tech close to three years now – mainly because I realized there was alot of dribble on cable plus most if not all of the shows I was watching were free anyway. To answer Mage – I will give her my Sopranos example. I heard so much about the show – so I went to my local library and checked out Season One; liked it – they didn’t have Season Two – so I went over to Hollywood Video / Blockbuster and rented Season Two. Like it – so going forward (Season Three and onward) – I bought the box sets. In all – there are other ways of watching these shows other than plunking down $ 80-$ 100 a month.
Thanks a lot for your comment, PJ. That’s a really good idea to check out what your library has.
Why pay over $90.00 a month for Cable or Satellite TV services? I get over 3000 STATIONS on my PC for Free. Instantly Turn your Computer into a Super TV!
PCTVGuy, I personally like watching television on a television set rather than a computer screen, but thanks for your perspective. I agree the cost of cable and satellite tv is high.
We recently downgraded to basic cable and the picture quality was horrible. I finally hooked up some rabbit ears and the difference is incredible. The picture we get for free is noticeably better than what we were getting spending $60+/month for the HD package from Cox.
Very exciting, Jason. I guess this means you’ve also given up Tivo….
I lost my pay TV when Qwest pulled out of TV. So far it’s been about 2 months and I just haven’t been able to justify the high cost of cable or satellite.
The only thing I really miss is CNN, FOX, Discovery, History and sports. Over the air when it’s in HD is superior in quality compared to pay tv.
I would get Cox cable but they sure are expensive. Satellite is even worse because they have these awful 2 year contracts and they aren’t responsible when things break. Not only that but they will almost double the cost after 12 months, even though you will get charged a heavy penalty if you quit before the 2 years is up. Dish just mailed me a promotion and the fine print says I have to provide a social security number! I guess they think they are as important as health care or something.
Anybody that gives their social security number, or signs up for 2 year contracts with ETFs is nuts.
Another thing that is nuts is to pay Dish $5 a month to receive the local channels I get with bunny ears for free.
Rob, thanks a lot for your thoughts. I couldn’t agree more. That is ridiculous they want people’s social security numbers. I admit I enjoy watching cable when staying at a hotel, but it is very expensive service to pay for all the time. Some areas are worse than others. My aunt and uncle’s neighborhood has competition and more reasonable rates because they have above ground wires on telephone poles, whereas many other areas have sky high rates and monopolies. You would think satellite would be competition enough against cable to lower the rates but it hasn’t happened yet.
Merry Christmas!
I’m in the process of getting ready to switch off cable and save that $80/mo. I’ve got the converter box, and once we have an antenna that can bring in Fox and NBC, we’ll be ready. (That bunny-eared one from Amazon doesn’t cut it for us.)
Going to keep TiVo, though.
pseudonymous in nc: Glad to hear it. I’ve had good luck with the Silver Sensor antenna from Phillips and plan to write a review of it shortly.
I used to have Dish Network with the 200 channels. Well, the majority of them were useless. First of all, 200 sounds like a lot but when literally half of the channels are crappola (chinese/japanese or some other foreign language I couldn’t understand, way too many QVC type channels, religious channels > no offense to religious people but to non-religious people, these channels are useless), it suddenly doesn’t sound like such a good deal. On top of that, there were only about 7 or so channels I absolutely watched consistently and were only offered through cable. Boomerang, Discovery, Animal Planet, Natl Geo, Science Channel, Bravo, and some cartoon networks is all I watched pretty much. Was it worth $80 a month/$960 a year? At the time, yes. But when money got tight, the cable was cut out. I realized how much time I actually had for more important/educational/interesting things. I re-took up my hobby of planted tanks and spend more time going out.
My alternative has been Netflix. I can watch shows through streaming and rent shows or movies that are out for a very affordable cost ($15/month). I also buy TV boxsets of shows I really love and watch them in rotation/mixed a lot. I pay something like $100 for an entire 9 seasons of a show (something like 300hrs worth of viewing time) and re-watch them. And since I have a good variety, I’m always sure to not get tired of them. On top of that, there’s always something good to watch on TV because I’m in control of the content!
Basically what it comes down to is I never miss out on a show I’m interested in (with Netflix), I get to watch my favorite shows all the time (box sets), and I get a sort of PPV alternative–Netflix’s Watch It Now. OK, now I sound like I’m getting paid or something. Seriously though, I don’t miss it. The only thing I still miss after all this time is Boomerang. There’s just something about old cartoons that’s so comforting. Not worth $80/month though.
OnDemand, thanks for the great comment. I’ve been thinking about buying/renting episodes of 24, which I just started watching this season. By the way, what is the planted tanks hobby?
Netflix also offers a $5 plan (only 2 movies a month) which could even be enough for some people.
If interested, I updated this post recently at: http://lowtechtimes.com/2009/04/06/the-case-for-free-tv/
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