Cut the Cord: Alternatives to Cable Cable and satellite TV have been firmly entrenched in American households for decades. Over the years, a seemingly endless parade of media giant mergers has consolidated networks to just a handful of providers, which means less competition and higher prices. The FCC reports that from 1995 to 2013, cable rates increased at more than twice the rate of inflation, and at four times the rate of inflation during 2012 alone. The latest proposed merger is Comcast with Time Warner Cable, which antitrust experts warn could be damaging to newcomers like Amazon and Netflix, and lead to less consumer choice, higher cable bills, and stifling of innovation. However, with an increasing number of other options, it’s becoming easier to drop cable and still have access to quality entertainment. If you’re fed up with continually escalating prices, tired of unsympathetic cable providers, and ready to look for alternatives, here are some questions to ask, streaming services to consider, and new devices to check out before you cut the cord. Questions to Ask: What type of shows do you watch? Sports? Movies? News? Sports are generally more difficult to find without cable. Some sports coverage is always available with an antenna, but a large portion will also be on ESPN and other cable channels. Caution: While many professional sports leagues sell direct Internet streaming access to games, they often blackout any game that’s nationally televised or aired locally. Do you have an Internet connection, and is it fast enough for streaming video? Netflix requires a minimum of 0.5 Mbps, and recommends at least 3.0 Mbps for SD streaming and 5.0 Mbps for HD streaming. Test your Internet speed at SpeedTest.net. Can you wait to watch TV shows after they’ve already aired? If not, you may want to keep cable. How long can you wait? Some services don’t make content available for a year after it has aired; others may only delay 24 hours. Streaming Services: Netflix — Streaming plans from $7.99 a month. Upgraded HD streaming plans and discs by mail are available for additional costs. Amazon Prime — $99 a year ($8.25 a month). With Amazon Prime, not only do you get Instant Video, you’ll also get access to streaming Prime Music, the Kindle Lending Library, and free two-day shipping on Prime-eligible products. Hulu Plus — $7.99 a month. Hulu (without the Plus) is free, but the selection and device support is lacking in comparison to Hulu Plus. Netflix and Amazon offer access to a deep library of older TV seasons and movies, plus original hits like Netflix’s House of Cards and Amazon’s Alpha House. Amazon also offers streaming HBO programming. Hulu Plus provides more current TV from networks such as Fox, NBC, ABC, and Comedy Central. For Hulu, depending on your favorite show’s network, you’ll need to wait anywhere from a day to a week for content availability. If you’re interested in a single network, some networks allow free streaming of their shows directly from their Web sites, but again, you’ll have to wait a few days after content has aired. See streaming service comparison to identify which may work best for you. In 2015, you’ll be able to subscribe to HBO without a cable subscription. Or, learn the “secret codes” to use when negotiating with your cable provider to reduce a pricey, extensive cable subscription to just HBO, bare-bones TV, and Internet. Streaming Devices: Some channels offer their video free over the Internet via apps on smart TVs and boxes like Apple TV, Roku, and Amazon Fire TV. If you have a smart TV that offers apps, you may not even need a separate device, just an Internet connection. An easy way to bring Web content onto your television is by using a streaming device such as a Roku or Apple TV, a video game console like an Xbox or PlayStation, a screen-sharing device like Google’s Chromecast, or even just an HDMI cable and a computer with compatible ports. See TomsGuide.com for a comparison and reviews of the best streaming players. New Roku Smart TVs and special TiVo devices offer Internet-enabled alternatives specifically for cord cutters. Antennas: Since 2009, U.S. TV signals have been digital and usually broadcast in high-definition. If you watch shows mostly on major networks, this may be all you need. Use TVFool.com to determine which free television signals are being broadcast in your area, the signal strengths, coverage maps, and which direction to point an antenna. Go to TomsGuide.com: Best Indoor HDTV Antennas and TopTenReviews.com: Outdoor HDTV Antenna Review for comparisons. Currently, none of these alternatives are as comprehensive or easy to use as cable, but with rapidly changing technology, there are definitely more choices today than ever before. We all know that new customers receive the best deals, so if you’re simply looking for better cable pricing, go to MyRatePlan.com to compare services and rates in your area. Money-Saving Tip: One of our readers just saved $60/month by canceling cable under her name and subscribing under her husband’s name. We hope all of these ideas help those who want to cut the cable cord find the right solution. “If it weren’t for Philo T. Farnsworth, inventor of television, we’d still be eating frozen radio dinners.” — Johnny Carson Central Service Association • Employee Benefit Programs Designed for Utilities • 662.842.5962 • www.csa1.com • csaemployeebenefits@csa1.com The Money Minute! is developed by the LFE Institute, an unbiased Financial Education Provider. Have a comment or an idea for a future issue? 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