- In this report
- Overview
- Choosing a TV service
- The pros and cons
ELECTRONICS FORUMS  Get real-world advice from others about choosing a new TV, digital camera, computer or cell phone. |
October 2007
TV Service Providers
How to Choose
Here are some factors that could make one service more suitable for your needs than another:
Availability. Cable is widely available in most parts of the country, except for some rural regions. But only 2 percent of markets are served by more than one cable company, so you have no choice if you want cable but don't like your provider.
Satellite service is available nationwide from DirecTV and Dish Network. You must be able to mount a dish antenna with an unobstructed view of the southern horizon.
Fiber-optic service remains limited in availability. In 2007, Verizon's FiOS TV was offered in parts of California, Delaware, Florida, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Texas, and Virginia. AT&T's U-verse service was available in 21 metropolitan areas in California, Connecticut, Indiana, Kansas, Michigan, Texas, and Wisconsin.
The latest programming services' expansion is being slowed by the need to build the costly infrastructure for the fiber-optic service. Also, like the cable companies, they must apply for a franchise in each market.
But that's starting to change. Several states have passed legislation allowing statewide service filings and Congress is debating a law that would allow nationwide filings. Consumer advocates--including Consumers Union, the nonprofit publisher of Consumer Reports--are concerned that a move away from local control might allow phone companies to offer TV service in only selected parts of a market.
Equipment costs. Only satellite has an up-front expense. With cable, there's nothing to buy. You rent a set-top box or CableCard from the cable company. HD digital-cable boxes usually rent for $5 to $10 a month, often the same as a standard-definition digital box. CableCards cost about $2 a month; you can use them only with a digital-cable-ready TV. One negative: CableCards don't support interactive services such as video on demand.
Instead of a regular digital-cable box, you can rent one with an integrated digital video recorder, often for the same fee plus a $10-a-month programming charge. Most DVRs record about 30 hours or so of HD (more of standard definition) on a hard drive. You can pause and rewind, then fast-forward live TV or previously recorded shows. Renting gear rather than buying eliminates up-front costs and fears that hardware you spent hundreds on will soon be obsolete. But rental costs add up over time and you're stuck with what the cable company offers, so you might not be able to get newer, better equipment whenever you want it.
In most cases, cable service hasn't required a contract, so there have been no early-cancellation penalties. But increasingly you might have to agree to a long-term contract to get a promotional rate or discounted bundled services.
With satellite, you can buy gear from the satellite company, a dealer/installer, or an electronics retailer. Standard costs start about $250 for an HD dish and receiver and can hit $750 for an HD DVR setup. Actual costs might be lower through rebates, free installation, and other perks if you sign a one-year contract. Some satellite promotions include receivers for several TVs. That can be more economical than paying monthly fees for multiple cable boxes.
You can lease satellite equipment by paying an up-front fee, typically $50 to $300, depending on the length of your commitment. (You might get it free as part of a promotion.) That fee covers the receiver, dish, and installation. In some cases, there's a monthly charge for equipment, and you must return it at the end of your contract.
You can also lease equipment from the phone companies. Verizon charges $10 a month for an HD box and $13 for one with a DVR. With AT&T, there's no separate hardware charge; it's bundled with service. Programming packages include one to three receivers.
HD lineups. Generally, prices for an expanded basic package with HD seem to be in the same ballpark. Cable and satellite are about tied for HD content but satellite is coming on strong. Channels such as Discovery, ESPN, TNT, Universal, HD-only HDNet, and premium movie channels are offered by all three services. Many cable companies also carry INHD, another all-HD channel.
Almost all cable companies and the phone companies pass along the major-network broadcasts that originate in HD. Satellite offers local channels to many but not all markets. Go to the satellite companies' Web sites and enter your ZIP code to see whether you can get local channels.
Cable is still the only way to get local-access and community stations. That could be a consideration if you enjoy watching school sports, for example.
Many major cable companies offer up to 20 or 25 HD channels, including network channels, varying by market. Dish Network has more than 30 HD channels, including niche HD channels acquired from Voom. DirecTV has about 15 HD channels, including the broadcast networks. At press time, the company announced it would have 100-plus HD channels later this year, after it launches two new satellites. Verizon offers up to 22 HD channels, AT&T up to 25. (All programming lineups, especially for AT&T and Verizon, are subject to change.)
HD costs. Cable can be the least expensive for basic packages. All three services have a similarly priced midrange HD package. Some cable companies offer bare-bones digital packages, $15 to $20 a month, with only major broadcast networks in HD. Midrange, expanded packages with more channels cost $40 to $50 a month. Some companies include HD versions of those channels at no charge while others tack on a $10-a-month fee for HD. Top-tier packages with premium movie channels in HD are about $70 to $100.
With satellite, you pay $10 to $20 for HD in addition to your package cost. Midrange packages are about $50 a month. The priciest packages, with HD premium channels, are about $100. Dish charges $5 a month for local channels.
Verizon's offerings include a 200-channel FiOS TV Premier package with almost 20 HD channels for $43 (plus $10 for the box, as noted earlier). AT&T offers U-family, with 50 family-oriented channels and seven HD channels for $44 a month, plus $10 a month for HD.
Service bundles. Most digital-cable services offer "triple plays" combining digital TV, digital phone, and broadband Internet access at discounted rates. Most bundles cost about $100, usually for a one-year promotional period. Prices rise after that. Besides getting a discount, you consolidate dealings and bills with one company.
DirecTV and Dish Network don't have their own Internet or phone service. Both of the satellite companies have deals with EarthLink and various phone companies to offer DSL Internet access in certain areas. AT&T and Verizon are offering discounts when you sign up for some combination of TV, phone, and Internet services.
It can be hard to compare pricing plans from different providers because of the variations in channel lineups, surcharges for premium channels, add-on fees, and more. Even the packages and prices from a single company vary from market to market. Limited-time promotions and bundles add yet another variable.
Sports in HD. Satellite has the ultimate football fix. One of the main reasons consumers go for big screens and HD is the desire for a virtual front-row seat at sporting events. Cable, satellite, and phone companies all offer regional sports channels and sports packages, some in HD. Many football fans get DirecTV because it has NFL Sunday Ticket SuperFan, with 150 HD games a season for about $350.
Video on demand. Digital cable offers true video on demand, including HD, through digital-cable boxes (but not CableCards). You can order movies, sports events, and shows from premium channels, such as HBO and Showtime, and watch them whenever you like, usually within a 24-hour window. You can pause, fast-forward, and rewind.
All cable companies offer standard-def VOD and some also offer HD on demand for $4 to $5. Many have some free VOD, often children's programming. Fully half of the digital-cable users we surveyed used and liked VOD services, with about two-thirds calling them good or excellent.
Satellite service isn't two-way, or interactive, so you can't get true VOD, though DirecTV and Dish offer pseudo-VOD. It lets you select from a menu of movies that are downloaded to a DVR's hard drive. DirecTV plans to offer HD VOD later in 2007.
Verizon and AT&T offer standard-definition programs on demand. Verizon said it would offer HD VOD sometime this year.
Availability. Cable is widely available in most parts of the country, except for some rural regions. But only 2 percent of markets are served by more than one cable company, so you have no choice if you want cable but don't like your provider.
Satellite service is available nationwide from DirecTV and Dish Network. You must be able to mount a dish antenna with an unobstructed view of the southern horizon.
Fiber-optic service remains limited in availability. In 2007, Verizon's FiOS TV was offered in parts of California, Delaware, Florida, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Texas, and Virginia. AT&T's U-verse service was available in 21 metropolitan areas in California, Connecticut, Indiana, Kansas, Michigan, Texas, and Wisconsin.
The latest programming services' expansion is being slowed by the need to build the costly infrastructure for the fiber-optic service. Also, like the cable companies, they must apply for a franchise in each market.
But that's starting to change. Several states have passed legislation allowing statewide service filings and Congress is debating a law that would allow nationwide filings. Consumer advocates--including Consumers Union, the nonprofit publisher of Consumer Reports--are concerned that a move away from local control might allow phone companies to offer TV service in only selected parts of a market.
Equipment costs. Only satellite has an up-front expense. With cable, there's nothing to buy. You rent a set-top box or CableCard from the cable company. HD digital-cable boxes usually rent for $5 to $10 a month, often the same as a standard-definition digital box. CableCards cost about $2 a month; you can use them only with a digital-cable-ready TV. One negative: CableCards don't support interactive services such as video on demand.
Instead of a regular digital-cable box, you can rent one with an integrated digital video recorder, often for the same fee plus a $10-a-month programming charge. Most DVRs record about 30 hours or so of HD (more of standard definition) on a hard drive. You can pause and rewind, then fast-forward live TV or previously recorded shows. Renting gear rather than buying eliminates up-front costs and fears that hardware you spent hundreds on will soon be obsolete. But rental costs add up over time and you're stuck with what the cable company offers, so you might not be able to get newer, better equipment whenever you want it.
In most cases, cable service hasn't required a contract, so there have been no early-cancellation penalties. But increasingly you might have to agree to a long-term contract to get a promotional rate or discounted bundled services.
With satellite, you can buy gear from the satellite company, a dealer/installer, or an electronics retailer. Standard costs start about $250 for an HD dish and receiver and can hit $750 for an HD DVR setup. Actual costs might be lower through rebates, free installation, and other perks if you sign a one-year contract. Some satellite promotions include receivers for several TVs. That can be more economical than paying monthly fees for multiple cable boxes.
You can lease satellite equipment by paying an up-front fee, typically $50 to $300, depending on the length of your commitment. (You might get it free as part of a promotion.) That fee covers the receiver, dish, and installation. In some cases, there's a monthly charge for equipment, and you must return it at the end of your contract.
You can also lease equipment from the phone companies. Verizon charges $10 a month for an HD box and $13 for one with a DVR. With AT&T, there's no separate hardware charge; it's bundled with service. Programming packages include one to three receivers.
HD lineups. Generally, prices for an expanded basic package with HD seem to be in the same ballpark. Cable and satellite are about tied for HD content but satellite is coming on strong. Channels such as Discovery, ESPN, TNT, Universal, HD-only HDNet, and premium movie channels are offered by all three services. Many cable companies also carry INHD, another all-HD channel.
Almost all cable companies and the phone companies pass along the major-network broadcasts that originate in HD. Satellite offers local channels to many but not all markets. Go to the satellite companies' Web sites and enter your ZIP code to see whether you can get local channels.
Cable is still the only way to get local-access and community stations. That could be a consideration if you enjoy watching school sports, for example.
Many major cable companies offer up to 20 or 25 HD channels, including network channels, varying by market. Dish Network has more than 30 HD channels, including niche HD channels acquired from Voom. DirecTV has about 15 HD channels, including the broadcast networks. At press time, the company announced it would have 100-plus HD channels later this year, after it launches two new satellites. Verizon offers up to 22 HD channels, AT&T up to 25. (All programming lineups, especially for AT&T and Verizon, are subject to change.)
HD costs. Cable can be the least expensive for basic packages. All three services have a similarly priced midrange HD package. Some cable companies offer bare-bones digital packages, $15 to $20 a month, with only major broadcast networks in HD. Midrange, expanded packages with more channels cost $40 to $50 a month. Some companies include HD versions of those channels at no charge while others tack on a $10-a-month fee for HD. Top-tier packages with premium movie channels in HD are about $70 to $100.
With satellite, you pay $10 to $20 for HD in addition to your package cost. Midrange packages are about $50 a month. The priciest packages, with HD premium channels, are about $100. Dish charges $5 a month for local channels.
Verizon's offerings include a 200-channel FiOS TV Premier package with almost 20 HD channels for $43 (plus $10 for the box, as noted earlier). AT&T offers U-family, with 50 family-oriented channels and seven HD channels for $44 a month, plus $10 a month for HD.
Service bundles. Most digital-cable services offer "triple plays" combining digital TV, digital phone, and broadband Internet access at discounted rates. Most bundles cost about $100, usually for a one-year promotional period. Prices rise after that. Besides getting a discount, you consolidate dealings and bills with one company.
DirecTV and Dish Network don't have their own Internet or phone service. Both of the satellite companies have deals with EarthLink and various phone companies to offer DSL Internet access in certain areas. AT&T and Verizon are offering discounts when you sign up for some combination of TV, phone, and Internet services.
It can be hard to compare pricing plans from different providers because of the variations in channel lineups, surcharges for premium channels, add-on fees, and more. Even the packages and prices from a single company vary from market to market. Limited-time promotions and bundles add yet another variable.
Sports in HD. Satellite has the ultimate football fix. One of the main reasons consumers go for big screens and HD is the desire for a virtual front-row seat at sporting events. Cable, satellite, and phone companies all offer regional sports channels and sports packages, some in HD. Many football fans get DirecTV because it has NFL Sunday Ticket SuperFan, with 150 HD games a season for about $350.
Video on demand. Digital cable offers true video on demand, including HD, through digital-cable boxes (but not CableCards). You can order movies, sports events, and shows from premium channels, such as HBO and Showtime, and watch them whenever you like, usually within a 24-hour window. You can pause, fast-forward, and rewind.
All cable companies offer standard-def VOD and some also offer HD on demand for $4 to $5. Many have some free VOD, often children's programming. Fully half of the digital-cable users we surveyed used and liked VOD services, with about two-thirds calling them good or excellent.
Satellite service isn't two-way, or interactive, so you can't get true VOD, though DirecTV and Dish offer pseudo-VOD. It lets you select from a menu of movies that are downloaded to a DVR's hard drive. DirecTV plans to offer HD VOD later in 2007.
Verizon and AT&T offer standard-definition programs on demand. Verizon said it would offer HD VOD sometime this year.
