The promise of cord cutting used to be all about saving money. Since you already had internet service you were paying for, the hope was you could save money by firing the cable company and getting the same content from streaming apps. That’s all come true to a degree, but live TV continues to be a problem for streaming. We all hoped that, sans all that wire and technology, we could get 100 channels for $15 a month. That didn’t exactly happen. If you want something similar to what you used to get from cable, you’ll pay about as much as you did for cable. How did it all go wrong?
Turns out the real culprit wasn’t the cable company.
OK, cards on the table very few people like their cable company. Satellite companies have higher satisfaction, but cable companies are generally known for their bad customer service, high prices, and scammy retention tactics. This video does a pretty good job of summing up the frustrations. It’s a parody, but just barely:
So let’s be honest and say there are a lot of reasons to hate the cable company. But it turns out their high prices aren’t really their fault. I can prove it easily. If you look at the cost of live streaming services, they’re about the same as cable. That’s not a conspiracy. That’s because the apps are just as beholden to the real problem as the cable companies are.
The real problem
The real problem is the companies that create the content. They charge so much to the pay-TV companies that it’s impossible to offer a service at a fair price. This is true whether the pay-TV company is online-only, traditional-only, or a hybrid like DISH and DIRECTV. There are three real culprits here, and I’ll be honest with you all… I’ve been calling them out for years.
#1: The Disney Industrial Complex
You knew Disney was big. You probably know that they own their own content, plus Marvel, Star Wars, the Muppets, and more. But you probably didn’t realize how much more they control. Disney controls Hulu, FXNOW, ESPN, and all of ABC’s programming. Think about how much time you spend with your eyeballs in front of one of their properties. They command a lot of attention, and they charge a lot for it. A decade ago, it was estimated that ESPN alone accounts for 25% of the average cable bill. When you add up all the Disney properties, that number probably skyrockets. And it doesn’t matter if you’re a streaming provider or a traditional pay provider, you pay all the same.
#2: Discovery
If you’re talking about live content, and you’re not watching Disney, there’s a good chance it’s from Discovery. They own everything from Discovery, HGTV, and Food Network to CNN, TBS, and HBO. The company has been on a buying spree in the last few years and it shows from their portfolio. It’s pretty hard to avoid their reach. They’re willing to work with cable companies and streaming providers, but not for a discount; they’d rather you subscribe directly to Discovery+ and HBO Max than get their content through a third party. Why? Because they make more money that way.
#3: Local Station Owners
If you think the local TV station is owned by a clueless blowhard like WKRP’s Arthur Carlson, you’re in for a surprise. Most local TV stations are owned by huge conglomerates like Sinclair and Nexstar. Those two together own well over 200 stations. They’re just as powerful as Disney or Discovery, make no mistake about it. And guess what, they command the same high prices. Some streaming services like Sling don’t pay for overpriced locals, but most do because they think you won’t buy their service without them.
The best value in live TV
Surprisingly, the best value in live TV is still traditional satellite. Both DIRECTV and DISH have apps that give you live TV on your devices, plus they give you a premium live TV experience on your actual television. Most people don’t know that with a traditional pay-TV subscription, you can authenticate to dozens of streaming apps, too. It’s the best of both worlds.
Simple as this, I have to tell you that this blog is sponsored by Solid Signal, a DISH and DIRECTV dealer. Do me a favor and call if you’re considering a live TV package. The experts on the other end of the line will lay out the pluses and minuses for you and let you make up your own mind. Call 888-233-7563 during East Coast business hours. You’ll be glad you did.
