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Posted: 4:48 p.m. Thursday, Jan. 10, 2013
By Clark Howard
Have you cut the cord from pay TV yet? There’s increasingly more action on that front than you might think.
The latest numbers from Nielsen indicate that 5.1 million households are getting over-the-air reception and supplementing it with Internet-delivered pay programming. That trend is up by roughly 25 percent, according to The Wall Street Journal.
Meanwhile, the average American household pays about $800 annually for cable and around $1,000 for satellite.
Our house is like ground zero for the idea of getting rid of pay TV. We’re with an expensive satellite player. I’ve floated the trial balloon with my wife and kids about cutting the cord entirely and they’re not having it.
So people talk about cutting the cord, but it is still a trickle, not a torrent.
Pit the providers against each other
It’s similar to when cellphones became ubiquitous some 10 years ago. There was a lot of talk about people cutting the landline, but it was more like a drop here and a drop there of people actually doing it. However, now that it’s 10 years later, you have monopoly local phone companies reporting big loses in customer numbers every quarter.
I think it will be a similar slow progression with pay TV. Many people now have access to four providers — two satellite companies, one cable company and a monopoly phone company providing TV. Pit them against each other and let them slug it out so you can get the best deal.
And remember, loyalty hurts. A new customer at any pay TV provider can get an introductory deal with a contract. But that same customer will be charged more once they’re out of the promo period.
Alternatives for a new generation
The alternatives are there. Instead of paying for TV, people who are under age 35 tend to watch Hulu, Netflix or Amazon Prime, in addition to using Redbox and Blockbuster Express for DVD rentals.
It’s not unusual for people to get 40 or 50 channels for free through the thin air using an antenna that may cost as little as $15. Visit AntennaWeb.org to check out the reception in your neighborhood.
Think about what you can do to stretch your wallet. It’s entirely possible to get enormous programming plus your locals for $16 or $20 a month.
ABOUT CLARK HOWARD
Find more answers to your consumer questions, plus Clark’s book “Living Large in Lean Times,” at ClarkHoward.com.
Listen to Clark Howard on most weeknights from 6 to 9 on AM1290/95.7FM News Talk WHIO.
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