Cable vs satellite TV. So how do they measure up when doing a side by side comparison? While we are strong believers in satellite TV, there are some areas where cable TV might be the right choice. Let’s review how cable and satellite TV stack up with each other in several areas. We will consider pricing, programming, and convenience, content such as HD, and of course a few other things along the way.
While it is impossible to cover all of the various factors involved when comparing cable vs satellite TV, a brief overview is in order. Most are familiar with satellite TV companies Dish Network and DIRECTV. These companies came on the scene in the early 1990’s when technological advances made it possible to deliver television to the home via small satellite dishes. No doubt some enjoyed satellite TV prior to this, though they probably didn’t enjoy having the eyesore that was a 10 foot satellite dish sitting in their backyard. While DIRECTV and Dish Network have often been the talk of merger activity over the years, both have settled into their respective positions as dominant players in the pay television arena.
Cable TV is quite a different story, as there are literally hundreds of cable operators in existence today. For the purposes of this discussion, we will focus on the main players, the largest cable TV companies in America today. Comcast, Time Warner Cable, Cox Cable, Charter Cable and Bright House Cable are probably the companies that most Americans have experience dealing with, as these serve most of the major metropolitan areas. For now we will leave out Verizon Fios and AT&T U-Verse, telecom operators that are moving into the cable TV business through their network of telephone lines.
When comparing cable TV to satellite, the main consideration on many minds is the price. With the economy like it is today, people are looking to make every dollar count, whether it be with the cable TV company or the satellite TV provider. Fortunately for consumers, both cable and satellite TV companies are doing everything in their power to sign up new subscribers. This means a good deal for the customer who is moving or looking to switch their service. DIRECTV TV deals include discounts for the first year of service, reduced or free equipment such as an HD DVR, and free movie channels like HBO and Starz for at least three months. Dish Network offers similar discounts, free movie channels for a few months along with free DVR equipment. Instead of a monthly discount on the price for the first year, Dish offers a few bill credits as an incentive over the first two years of service.
Cable TV discounts vary based on what promotions the company is running at the time. Most cable TV promotions for new customers involve triple play bundles. These packages include not only digital cable, but also high speed internet and home phone service. Comcast, Time Warner cable, and Charter all offer these types of bundles. While the terms and conditions on these cable TV deals vary, usually you can get all three services for around $99 per month for an introductory period, usually anywhere from six month to a year. While there are certainly pros and cons to consider with this kind of cable TV deal, the price usually can’t be beat for customers who want all three services. If you’re not in the market for phone or internet service though, satellite TV is the better way to go.
What about regular pricing when comparing satellite TV with cable? Most folks who have had cable TV inevitably become frustrated with the high price, and more importantly the constant rate hikes. Overall, Dish Network has the lowest regular prices, followed by DIRECTV. Dish Network also has new all-HD packages that are extremely affordable, though the channel selection is limited with Turbo HD. Cable TV is reasonable when you stick with packages like the Comcast basic cable package. Anytime you get into digital cable without a bundled discount, you will be paying some of the highest prices out there when it comes to pay television.
The next area to consider is content, what sort of channels are available on cable vs those on satellite TV. While both cable and satellite have comparable channel lineups, a big difference can be found in one particular area-HD or high definition. In this area, satellite TV dominates cable TV in most areas of the country. This is due to the delivery mechanisms used by satellite TV, which are much more conducive and flexible when it comes to adding new content like HD channels.
DIRECTV led the pack, with a rapid expansion of their national HD lineup in 2007. While Dish Network was a little late to the party, they have caught up with DIRECTV in 2008, as both satellite TV companies now offer in the area of 130 HD channels. Many of these though are pay-per-view HD channels, so the number is a bit skewed for marketing purposes.
With cable TV, the number of HD channels will vary widely depending on your cable company, and the size of the community you live in. For example, Time Warner Cable has been expanding their HD lineup in the past few months, especially in highly populated areas. If you live in New York, New Jersey, or Dallas, there is a good chance you can get about 100 hi-def channels. The same is true with some areas served by Comcast, such as Atlanta or San Francisco. But if you don’t live in one of the major markets served by one of the big cable TV companies, you will probably be extremely disappointed by the lack of HD content offered. An example of this is Charter cable, where you can consider yourself lucky if you even have 40 HD channels. Overall, if you have a definite desire for HD, satellite TV beats cable in this area.
What sort of equipment considerations are there when considering cable versus satellite TV? Usually you can get set up with either cable or satellite without any out-of-pocket costs. The real consideration is whether there are any monthly fees associated with leasing the equipment. DIRECTV and Dish Network will both set you up with free installation of service in up to four rooms of your home. You may have an upfront cost if you want to have DVR service in more than one room, check with your preferred satellite TV provider to find out exact charges. Usually the monthly cost for DVR service ranges from $5-7 dollars a month, though some satellite TV packages include this fee in the monthly price for the first TV.
With cable TV you will find similar charges. You can save some money monthly if you accept an analog signal instead of a digital cable box. Having digital cable boxes in several rooms in the house can really add up, as the fee is usually $10 or more per month per box. One area where some cable TV companies are really high is for DVR service. With Comcast’s recent price increase, customers are now paying more than $15 a month for DVR service with cable TV, quite a difference than DIRECTV or Dish charge.
As far as the quality of the DVR’s used by cable TV and satellite companies, Dish Network is recognized as having the best DVR units on the market currently, just a step below TiVO devices. The DIRECTV DVR and cable TV DVR units are comparable, but aren’t anything special. TiVO does have agreements in place with some cable TV companies, allowing subscribers to hook up their TiVo’s to cable. Expect an additional monthly fee though for the TiVO service. DIRECTV and TiVO have inked a new agreement, and new HD TiVO devices supported by DIRECTV are expected on the market in 2009.
One final factor when it comes to equipment is the delivery method used. Satellite TV of course uses a dish which has to be mounted outside your home or apartment. Unfortunately, this shuts out completely some individuals who would like to have satellite TV, but can’t because they live in a condo or apartment. Dish Network and DIRECTV are working on new initiatives that will allow more people living in condos and and apartments the ability to subscribe to satellite service. One of these is a multi dwelling unit or MDU system where Dish and DIRECTV will work with building owners, placing the satellite dish units on the roof for the whole building. Another option for those who have their own patio or deck is to have their dish placed out there. Some landlords and condo associations frown on this, but recent FCC rulings have upheld the rights of tenants to have satellite dish units placed or mounted in these areas.
Signal quality and customer service should also be examined when comparing satellite to cable TV. With satellite TV, you have a 100% digital signal. Both Dish Network and DIRECTV offer this, so you are guaranteed to have excellent audio and video quality. With cable TV, you may not have as good of a signal. That is because in many areas, cable TV is not yet digital; they often use analog or a mix of analog and digital in delivering the stations to your home. Ordering digital cable is the solution to this, but of course there is a good chance you will run into additional charges for each digital cable box in your home. If you want guaranteed digital video and audio, the satellite TV is the choice over cable TV.
When it comes to customer service, it seems that almost everyone has their own cable TV horror story. Whether it’s the installer that never shows up, or the endless hold times that have to be endured when you call, cable TV companies certainly aren’t known for great service. Customer satisfaction surveys bear this out as well, as recent surveys places both Comcast and Time Warner cable (TWC) at the bottom of the barrel compared to satellite TV providers. DIRECTV came in 1st in last year’s survey, while Dish Network came in second place. Customer service is certainly a consideration when comparing satellite to cable, especially if your blood boils when experiencing poor customer service.
Video on demand, or on-demand is another area to look at when judging cable against satellite TV. Here is one place where the big cable companies have really differentiated themselves from the pack. Comcast, Time Warner, Cox cable and Charter all have invested millions in their on-demand lineups in order to attract and retain customers. Comcast has even deployed a project called Project Infinity, which is designed to offer customers 1,000 HD choices at any given time.
Though Comcast may have the most on-demand, other cable TV companies offer plenty of content as well. If you have a premium movie package like HBO or Showtime, you can use the on-demand platforms to watch movies and exclusive series whenever you want with on-demand.
Satellite TV on-demand is still a work in progress. Though DIRECTV has officially launched its own on-demand platform, it is nowhere near as robust as that offered by big cable TV companies. The main problem is that you have to download on-demand content through a high speed internet connection, and high speed internet is often difficult to come by in the areas where satellite TV is popular-rural America.
So there is a brief rundown of the cable vs satellite TV debate. Obviously there are plenty of pros and cons on each side, but it is easy to see why satellite TV has become so popular and has taken away so many cable TV customers in the last 15 years.
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