Cord-Cutting: A Multi-criteria Decision Process

For his album Human Touch, back in 1992, Bruce Springsteen wrote and performed the song “57 Channels (And Nothin’ On).”  Prescient, yet he understated the sorry condition of television today.  American cable and satellite TV subscribers now have more than 257 channels to choose from, and still may find nothin’ on.  Networks’ outsize reliance on cheap-to-produce reality TV programming, reboots of long-cancelled dramas with recycled scripts, shows that continue long after they “jumped the shark,” and so-called newscasts that no longer even pretend to be objective – all contribute to bleakness in the modern television landscape.  

Couple all those disappointments with the cable companies’ reputation for inflexible channel bundling, manipulative marketing, high prices and generally lousy customer service – which in part motivated the recent advancements in alternate technologies (as well as AT&T’s intent to unload WarnerMedia) – and it doesn’t take a visionary to foresee the impending demise of pay TV as we know it.  Even so, the prospect of cutting the cord carries its own challenges, compromises and risks – particularly for consumers who grew up in a cable-TV culture and still rely on TV for entertainment, education and perspective on the outside world. 

The more tech-savvy among us, and especially those who came of age in the smartphone generation, may not fully appreciate how unnerving the cord-cutting decision can be.  Many have grown accustomed to channel surfing, channel guides, even arranging calendars to accommodate a favorite show’s broadcast schedule.  A “live” broadcast once meant people on the screen performing in front of a camera mere seconds before we saw them; today – aside from most broadcast sports and some news – “live TV” typically refers to the quaint, pre-recorded, pre-scheduled and passive “linear” alternative to streaming on demand. 

What goes around comes around

A half-century ago, watching television was typically a family activity.  With one TV or maybe two, connected to “rabbit ears” or a giant skeletal antenna up on the roof, we hoped for clear images from the local ABC, CBS and NBC affiliates and maybe PBS or an independent TV station.  A decade ago, the average US household had three TVs, and 85% of households were paying for cable or satellite TV service.  Today, that 85% market penetration has dropped to less than 75%, while cellular and wire-based internet services are ubiquitous; streaming devices are mainstream; indoor and rooftop antennas are increasingly re-appearing at homes across America; and TVs themselves are being displaced by PCs, laptops, tablets and smartphones. 

Overchoice and FOMO

Early adopters embrace new technologies and gadgets, and many have escaped or never embraced old-fashioned pay TV.  For others, change isn’t quite so easy.  Despite their cost and service issues, cable and satellite companies offer us packages of channels to which we’ve grown accustomed; our habits already conform to those offerings and limitations; and technological terms of art can be intimidating.  We don’t like some of what we have, but we don’t want to lose the parts we like.  And while the cord-cutting possibilities seem endless, the choices can be overwhelmingly complex.  

Here’s a sampling of the criteria involved in making a rational decision: 

Access FeatureCable/SatelliteAntenna (OTA)Streaming Service
Local Broadcast Stations YesYes Fubo, Hulu, YouTubeTV
Top Cable ChannelsYesNoAll above + Sling, Philo, etc.
Second-tier ChannelsVary by ProviderRarelyVary widely by Service
Local Sub-Channels (.2+)RarelyYesNo (but see “Others”)
Others (Get, Comet, etc.)RarelyVary by LocationRarely
Free On DemandVary by ProviderNoPluto, Tubi, Roku, etc.
Paid Streaming (app)NoNoDiscovery+, Disney+, etc. ($)
Premium On DemandVary ($ if offered)NoNetflix, HBO Max, etc. ($)
Scheduled Premium Yes (extra $)NoHBO, Showtime, etc. ($)
Channel Guide & PreviewYesBasic or DVR or $Yes (with “Live” Services)
Recording (DVR or Cloud)DVR (included or $)DVR (Tablo, etc.)($)Cloud (minimal capacity or $)
Works Without InternetYes*Yes**No! (~20 Mbps per 4K TV)
* Some companies also offer internet-based services    ** Tablo, HDHomeRun, etc. recast OTA via wi-fi

Beyond all these choices are myriad interoperability, compatibility and usability issues to consider.  A few examples:

  • The streaming services with channel lineups most similar to cable TV have some specific limitations.  YouTubeTV lacks several Discovery Network channels; AT&T TV [now DirecTV Stream] lacks NFL Network and charges extra for many common channels; most of these services lack local PBS; and they all have at least one substantial gap.  And reliance on any streaming service inherently impedes old-fashioned “channel surfing.”
  • TiVo, Roku TV and Apple TV can merge over-the-air (OTA) and streaming information in one Channel Guide. Sling is the only major service whose Channel Guide integrates OTA data with their streaming channels.  Sling also offers exceptionally flexible customization, but the price of those add-ons quickly undermines Sling’s value proposition.    
  • Selecting the “best” OTA antenna blends art and science.  Location (distance from the broadcast tower), location (towers in one or multiple directions), location (line of sight, power lines, etc.), signal (UHF is easy; VHF-high is not so easy; VHF-low is challenging but rarely necessary), signal (odd quirks can cause signal strength to vary within inches), and signal (coax-connected receivers rob signal strength from each other) all must be considered. 
  • All smart TVs are not equal – some are built for Roku or Android (Google) or Fire (Amazon).  LG and Samsung TVs use proprietary operating systems.  Apple TV devices stream on yet another system, which also happens to support Apple HomeKit, making it a cost-effective Smart Home hub.  Every operating system fails to support some unique set of specific streaming apps, as in the current feud between Roku and Google. 
  • Selecting the “right” recasting OTA DVR can be especially complex.  Fire TV Recast is fine for most Amazon-centric users, while TiVo and HDHomeRun are better for Android. Tablo works with any operating system and is a great choice for Roku users, but pairing with a new Samsung or LG TV requires an intermediate streaming device.
  • Of course, any TV’s limitations can be bypassed simply by plugging in a streaming device (Roku, Fire, Apple, Chromecast, Shield, Tivo), though doing so defeats most of its “smart” features and may mean using two remotes or the added expense of a fancy universal remote.  On the other hand, a smart TV gets a little less smart every year. Even the Roku-vs-Fire-vs-other decision depends on one’s preferences, as each system has its own pros and cons.

The Bottom Line:  Proceed with caution, but fire at will.  Finding an unbiased expert who appreciates and respects the many nuances of one’s objectives is no trivial matter.  Even finding a competent installer for an outdoor antenna (if needed) can be a challenge.  Still, a well-chosen streaming service (such as Hulu+Live or Sling), with or without a high-quality OTA TV antenna (Televes, RCA, Winegard, etc.), with or without supplemental streaming subscriptions (Paramount+, Netflix, etc.), can deliver amazing results.  Few paid streaming options demand more than a one-month commitment, so exploring options and taking it one step at a time makes change easier to accept.  Many cord-cutters reduce their paid TV service – rather than cancel entirely – while gradually ramping up reliance on OTA and/or streaming services, making phased transitions almost seamless.

The appealing choices among streaming services, quality streaming devices, available high-speed internet service, and faster wi-fi protocols and routers have reached a collective tipping point.  The performance of OTA and streaming TV systems now rivals or exceeds anything the cable and satellite TV providers can offer – at a total price that looks like a relative bargain.  With the assistance of YouTube videos, tech-savvy friends (and their children), and perhaps an audio/video subject matter expert, a satisfactory solution is easily within reach. Surely, Bruce, with more than 1057 channels at our fingertips, there’s somethin’ on!

Is your enterprise wrestling with complex, multi-criteria, strategic decisions?  We at Bonnagar are experts at wading through all the considerations and alternatives; addressing our clients’ preferences, priorities and constraints; identifying and weighing risks; and analyzing variable sensitivity – while ensuring the process moves expeditiously toward an informed decision.  After all, failing to make a timely decision is the same as deciding to take no action, potentially leaving your business future with only 57 channels instead of 1057.   

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