It’s an interesting question, right? Now, I’m sure there would be a lot of variables to consider, but if you could pay once and get lifetime satellite service, would you do it?
Reaching the limits of the subscription model
Let’s look back 50 years to 1973. If you wanted TV, chances are you got it from an antenna. You bought the antenna, with nothing more to pay after that. If you wanted to listen to music, you bought a record or an 8-track. You legitimately owned that music, you could play it as many times as you wanted with nothing more to pay. Want to play a game? To the extent that video games existed, they were a fixed purchase. Buy a Pong or Odyssey system and it was yours forever. Back then, the only things you paid for monthly were print media (newspapers, magazines, etc.) and your telephone service.
A lot of people have told me that they’d love to go back to that model if they could. When you compare that world of 1973 to the world of today, it’s quite different. You pay monthly for your TV, whether it’s cable, satellite, or streaming. You pay monthly for a streaming music service. Chances are that if you’re a gamer you’re paying for Playstation Plus or Xbox Game Pass. It’s all monthly charges now. Sure, you can avoid some of them if you try. Buy media on DVD or Blu-ray disc. Buy CD or download music from iTunes. Buy games when they come out. It’s not clear whether you’re actually saving money, and subscriptions just seem easier.
Subscriptions are easier, until you unsubscribe
If you stop paying for TV, music, and games, you lose access to them. Simple as that. You’re back to going to the library and checking out books. I love libraries, but let’s be honest that’s not the same experience, right?
It’s only when you start unsubscribing that you remember how much you’re missing. As I said, you can get some stuff on physical media. But when it comes to live TV, you have two options. Go back to over-the-air antenna, which is a great choice. (Shameless plug: buy an antenna from Solid Signal.) Or, pay for some sort of subscription TV. What if there were a third option?
The likely cost of lifetime
When it comes to pay-TV, there are all sorts of equations that govern how long it takes to profit from you as a subscriber. Both cable and satellite will lease or rent you equipment at a loss. Typically, it’s said that it takes about 14 months to recoup the investment in equipment and installation. That’s one reason why most pay TV companies offer you contracts. It’s so they can feel confident about fronting you the equipment.
On the other hand, the average pay-TV customer stays with a company for about 5 years. It’s different for every company. DIRECTV claims to have the most loyal customers. I believe them. On the other hand, it seems like people generally try to cancel Spectrum within a couple of months of starting. But let’s say that we’re talking about 5 years of service, and let’s say you’re paying the average rate of $110 a month. That means the “gross” value of your time with a pay-TV company is $6,600. Take out things like commissions, equipment costs, content costs, etc., and it’s much lower. But that’s not important right now.
Would you pay $6,600 for lifetime pay-TV?
Not everyone has $6,600 laying around. Financing seems to defeat the purpose of paying once. But if you had the money, would you spend it that way? You’d have to stay with your pay-TV company for five years to pay for it. I’ve been with satellite TV for over 20 years and I know people who have been with them since the very beginning in the early 1990s. For those folks, it would have penciled out long ago.
But what about you? I’m curious what you would do if you could. Let’s say you had $6,600 lying around and they offered you lifetime service for that price. Would you do it? Or are you happy with a subscription model that lets you leave at any time once your contract term is up? Different strokes for different folks to be sure, so let’s get the conversation started!
