How I Cut My Television Bill in Half
Published on - February 19th, 2009 (Modified on - November 10th, 2009) (by J.D. Roth) I’ve had several requests lately to update my two-year quest to find cheap alternatives to cable television. In March of 2007, Kris and I were paying $65.82 for a deluxe digital cable package that we rarely used – money that could have been used to pay down debt or increase the balance on my savings account. “$65.82 a month isn’t a fortune,” I wrote at the time, “but it’s a lot of money to pay for something that doesn’t get used. If we were big TV watchers maybe the cost could be justified. But we aren’t. And it can’t.”
To save money, we cut our cable to just the basic channels, which reduced our bill to $11.30/month. We also began to use the iTunes Music Store to subscribe to the shows that we wanted to watch. And over the past year, I’ve become a fan of Hulu, an online service that allows users to watch many past and current shows for free.
Here’s an overview of the tools we use, and how much money we’ve managed to save.
The iTunes Store
When we cut our cable bill from $65.82 per month to $11.30, I knew we would save over $50 per month. I also knew that we’d miss a couple of shows we really like. We don’t watch a lot of television, but we do like our Battlestar Galactica. So, I made a deal with Kris.
“If you’ll let me cut back to basic cable,” I said, “then I’ll purchase any shows you want from the iTunes Store.” She was reluctant at the time, but over the past two years, we’ve found that there really aren’t that many shows we want to watch.
Since we started, we’ve purchased eleven “seasons” from iTunes, totaling $398.42 (or about $36.22 per season). This works out to about $16.60 per month. When added to our $11.30 basic cable bill, we’re paying $27.90 each month for television. That’s less than half of what we were paying before.
Hulu
We’ve also found a way to watch certain shows for free. For a short time last year, NBC/Universal and Apple got cranky with each other. NBC/Universal pulled its shows (including Battlestar!) from the iTunes Music Store. What’s a geek to do? Answer: watch the shows for free through Hulu, which features content from NBC, Fox, and many other sources. Crisis averted.
Over the past year, I’ve come to love Hulu. It took some GRS reader encouragement for me to actually explore the site’s potential, but now that I know how it works, I’m hooked. Here’s the basic premise:
Hulu allows viewers to watch new and classic television programs for free. (The site also includes a small selection of feature films.) Each program includes the normal commercial breaks, just as on television. However, instead of being bombarded by two minutes (or more) of commercials at each break, you’re subjected to a single 15- to 60-second ad (that you cannot interrupt). To me, that’s a fair trade for free programs.
Most current NBC and Fox programs are available on Hulu, though each show seems to have its own schedule. Older shows offer full seasons. Some shows, like 30 Rock, only offer the “trailing 5 episodes”. That is, you can only watch the most recent 5 episodes from the series. Others, like The Biggest Loser (which I’m now addicted to thanks to readers at Get Fit Slowly) only allow one episode to appear at a time — and it’s last week’s episode. (So, please — no spoilers about what happened Tuesday night!)
Although Hulu doesn’t directly host content from ABC or CBS, it does index these shows, and link to their source pages. So, for example, if you want to use Hulu to watch Lost, you can do so. When you look for the latest episode of Lost, Hulu will redirect you to the ABC website. This is a nice touch.
For me, though, the best part of Hulu is its library of classic television. When I was sick with the flu in early December, I spent two days plowing through old episodes of Adam-12. (Which was much better than I had remembered.) Hulu also includes shows like:
- Battlestar Galactica (new and classic)
- Arrested Development
- The Bob Newhart Show
- Miami Vice
- Hill Street Blues
- And even The Dave Ramsey Show!
Actually, I just noticed that Gary Vaynerchuk’s video wine blog, The Thunder Show, is available on Hulu, too!
My biggest complaint with the site is that navigation is clumsy. It’s sometimes difficult for me to find what I’m looking for. (The “browse TV shows alphabetically” view is most useful for me.)
Other options
Though these are the tools that Kris and I use for our television consumption, there are other options available. For example, I’m a big fan of the public library for books, but I haven’t used it for TV on DVD, though I’m sure that’s possible. I’m also aware of Veoh and Joost, though I haven’t tried either of them.
Those of you in Western Europe may want to explore Zattoo, a free downloadable app that lets you watch certain television content on your computer. (And, via the comments, Jeremiah Bell notes that Canadian readers can find streaming television at CTV and GlobalTV.)
None of these is going to satisfy those who truly enjoy television. If you must see your show right now, or if you are a fan of live sports, you may have to fork over the dough for a deluxe cable package. I’m content to wait. It saves me money, and it lets me watch shows on my terms.
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I have a question… I you buy all you television from the iTunes Store, how did you discover new programs?? Just but picking titles out of a list?
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Timely post!
I have been exploring options of phasing out our cable for months now– I was considering a high powered antenna ($200 one time) and some form of online service like Hulu . . . I hate my cable provider with a passion!
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I love this idea, but what if you have multiple tvs in the house? We’re a family of 4 and often watching different things at the same time. A computer for each tv gets expensive and it’s a little more hardware than I’d like to keep going.
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I’d be perfectly happy to go without cable but my girlfriend watches a few shows.
The odd time I do watch TV it’s just whatever happens to be on the Food Network at the moment, I would never make a point of seeing anything.
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@deb
It is a very hobby/geeky oriented setup and many geeks I know would set it up for free + the cost of equipment just for fun. I know I would lol
There are solutions for the multiple TV problem. They are somewhat technical such as having a RF Modulator and broadcasting your own channel that your TV’s can tune into. The one I particularly like is installing basically a back end to transmit over wireless internet and having a dumb terminal (simple PC with TV tuner)at each TV that connects into the backend and gets a feed. This will lower the cost of having to buy a PC for each tv significantly. Slim/dumb terminals are very small and inconspicuous. MythTV is the application I use for this setup. I am sure you could contract a geek via craigslist or something to do this for you if you lack the nerdiness to set it up yourself
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I like hulu too, but recently I’ve discovered fanscast.com. Most of the Hulu shows seems to be on fanscast as well, but there’re less ads. On fanscast, there’s only 1 commercial at the beginning of the show, but on hulu, there can be commercials every 10 minutes, which is a lot more annoying.
disclaimer: i’m not affiliated w/fanscast.com in anyway. just want to share another source of free tv!
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Hulu.com and ABC’s service are god-sends. If my apartment complex wasn’t giving me cable for free, I would have cancelled it because everything I watch is online for free.
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I cut cable all together after I got my digital receiver. $70 a month was just not worth it for the 5 stations actually worth watching. And in Los Angeles, there are lots of options for HDTV stations on with the digital tv that come in perfectly!
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I just hate it when people get all moralist about TV watching. People are actually allowed to spend time doing what they enjoy. Just because you can’t find something good on TV doesn’t mean others can’t. And I’ve watched some shows with fabulous writing. You know, like books, just acted out.
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Great article JD. I am about to cancel my cable television, or at least lower it to the cheapest basic cable which is about 14 bucks a month, if I cancel all the way and keep just the internet connection my bill goes up by 17 bucks, so it makes sense to pay the 14 and pocket the difference.
I just purchased a refurbished Mac Mini for 500 dollars. I am going to hook it up to my TV and use it to watch all the online content that is out there. The Mac Mini is a great cheap media center PC to hook up to a TV and the form factor is great. It will also double as my music server, and anything else I need it to do it will do. The savings by getting rid of the digital cable with have the Mac Mini paid for in a few months too.
With the whole Hulu/Boxee thing going down, the only way you will be able to watch Hulu is on a computer via the web browser since broadcasters don’t want an easy way for people to watch Hulu content on their TV because it will take viewers away from the actual broadcast and will lower the ad dollars they earn, that is where the controversy is coming from and it makes sense to a degree. What they need to do is also track the number of people watching streams from Hulu and the other sites and factor that into what they charge for advertising. The cable companies are also putting pressure on the networks to take shows off the internet because people are doing what we are all doing, either canceling our service or limiting it. If cable TV operators were smart, they would offer an a-la-carte system for TV. Allow me to pick what channels I want for about 2 bucks each. I would do that in a minute as there are only about 10 channels I care to watch anyway. Anyway, back to my setup. There are tons of programs for the Mac that will allow me to do this all with a remote control so I don’t even need to hook up a keyboard or mouse unless I need to update or things like that. Keep canceling that cable TV people, it is the only way to get the cable companies to adapt to what WE want instead of us adapting to them.
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I haven’t had cable since 2003. Hulu/netflix have so many shows that cable seems unnecessary unless you’re a sports fanatic or you NEED to watch cables series as soon as they air. People are also addicted to their DVRs (and to paying $120 a year to have it). I think a lot of people don’t think about the long term ramifications of their monthly monetary obligations. Not having cable for 5 years was instrumental in saving money towards our house down payment.
Watching TV on your computer screen isn’t much fun but it’s easy to get around this.
1. Buy a refurb/reconditioned computer at TigerDirect. I got one for $120! No way could I easily build one for that cheap. If your tv has a VGA input, you’re all set. You’ve got easy access to Hulu and Netflix Watch Now. I was going to go the “build your own pvr/dvr route” like Chad@#5 but this was easier and cheaper. I can’t imagine how he pulled that off for $350. I’d like to see the parts/price list for that. I also came around to realize that I don’t NEED a dvr/pvr solution. It’s just one of those “nice to haves”.
2. XBMC (Xbox media center), an operating system for the old xbox allowed you to watch Hulu up until this week. Darn it! This was a great alternative to #1 if you have an older TV sans VGA input.
JD: I love my antenna. I get all the local HD channels. $35@buy.com
http://www.buy.com/prod/audiovox-amplified-directional-indoor-hdtv-antenna-audiovox-amplified/q/loc/111/90144642.html
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For those in Canada (or other countries) without access to Hulu, you might want to check out this article about a free vpn program (called Hotspot Shield) that circumvents Hulu’s exclusively US IP policies:
http://patricksoon.blogspot.com/2008/01/how-to-watch-hulu-in-canada-hack.html
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I also have basic cable ($10/month), but use my Tivo to download shows off Amazon Unbox (@$1.99/episode)
Internet is $10/month for 768KB (slow), so streaming’s out, but I can still download episodes overnight.
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I think this sounds great. My BIG resistance (yes, my husband has been bugging me to death about this lately) to cancelling cable is not for the shows that I love so much but the shows that my KIDS love so much. What would you suggest for the kids??? Thanks.
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For the kids? A soccer ball, some books, and a few board games …
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We have Blockbuster.com, and we’re satisfied paying $19 a month for movies and TV. The catch is that you’ll always be a season behind on your shows. We just have to make sure friends don’t discuss current season spoilers when we’re out together.
I use the rabbit ears to watch real-time television once per year, for the Macy’s Thanksgiving Day Parade. (It’s a family tradition.) Once the digital conversion makes that impossible, we’ll be truly cable-free.
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included in my best of february 2009
http://haveless.blogspot.com/2009/02/best-of-less-is-more-february-2009.html
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Joining the conversation a bit late, but…
We pay $4.99 per month for basic channels from Dish Network (actually, with taxes it comes to $5.35. Honestly, I could cut that out – there is literally nothing on television I’m interested in. Certainly nothing that would be worth hundreds of dollars a year, which would equate to many, many working hours of my life.
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Lots of great comments, I quit reading around #15. We bought an s-video cable (from s-video.com) that turns our 52″ TV into a monitor.
We turned off our satellite a year ago. we watch all the major networks, plus USA online. We also watch Hulu and use Netflix instant download a lot.
Our internet plus satellite bill was $132 a month. Now our Netflix bill and our internet bill are $63 a month.
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Here’s an even better idea for saving money and improving your life – get rid of your television. Haven’t had one for more than 15 years.
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I can’t say goodbye to the old tube just yet. With that in mind, we had to purchase cable to receive any channels since the HD switch. We tried everything and couldn’t get any channels through our new converter box. I think we’re just too far out in the boonies. We bought a package deal so we could also upgrade from dialup to DSL. Thank goodness for speed! I’m comfortable paying $30.00 a month for the DSL/Basic Video package we get right now.
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The cable bill is just another one of the unnecessary things most people can cut-back on.
I mean, it’s not like you can watch television many hours on a single day. Getting on-demand showing is a better idea, I think.
Thanks for the tips.
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J.D.,
Hulu sounds great. It’s not available for viewing outside the US yet, (I live in Mexico), but I did leave my email and name for when they expand.
If you know of any such service that allows North America viewing outside the US, I’d be delighted to hear about it!
-Romy
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A point I’d like to stress is the availability of video from public libraries. In the two cities I’ve most recently lived in, your library account gives you access to online catalogs of videos available not only from the local library branch, but also from other participating libraries. You can search for and reserve titles, have them delivered to and pick them up from your local branch, and keep them for a week (you may also be able to renew them online, in my case for up to 3 weeks total). In one city, the service was free; in the other, it’s $1.00 per video, excluding children’s titles, which are free.
You can’t get much cheaper than FREE. Here’s a point I’ll capitalize: LIBRARIES ARE FANTASTIC, FREE (THAT’S FREE!) RESOURCES PEOPLE DO NOT USE. USE YOUR LIBRARY!
This does require returning your videos on time or paying a fine, so if you don’t actively maintain your account, the library deal might not be for you. Otherwise, make the effort. It’s good for you, and also good for your library.
Thanks.
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My wife and I watch a lot of movies, but not a lot of TV. We cut out all but the basic cable and purchased a modest LCD HDTV. We also have an Xbox 360, and have a Netflix subscription. The Xbox allows us to watch Instant Watch Netflix on the TV.
One of the best things about the new TV is the digital tuner. The cable company wants $13 a month just for a digital box to recieve the HD, but my TV recieves all the HD channels without the rental box.
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OT
I didn’t remember you are a fan of BsG, I recently discovered it and i love it – wonderful stuff. So say we all.
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I too use hulu. If you love Monk, Psych, Burn Notice, & the U S Marshall to hide/move persons who are to testify & other popular USA network shows, go to USA network.com. You can see last weeks episode & all prevuous shows, with about 2-3 30 second commercials during the whole episode. Love It. Stopped cable too. It was rediculous with all the taxes added on that is not helping us at all. Good site. Good How-tos.
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I have Directv and it’s ridiculously expensive. I tried cutting back to the family programming but geez, that’s pretty much locals plus Nickelodeon. I’m thinking about canceling it altogether…
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ME and my gf just cut the cable and switched to watching tv online. We really dont watch tv all that much and were spending about $40 a month. We now pay $0, just plug your laptop to your plasma and go to hulu. Another thing is that we watch less tv now becuase of the hassle of getting into the website and all which is great cause now we are reading more and being outdoor
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I know this is a late response to this thread, but I only saw this post with the 2009 top ten thread and thought I’d add some info for folks.
I also got rid of cable TV (though not cable internet) and I am also a big sports fan (mostly soccer and baseball). I saw that lots of people have posted how they would miss the sports, so here’s my suggestion for those of you into soccer and baseball:
Soccer – ESPN360 carries a ton of games. Go to ESPN’s web site and find the link to ESPN360 and have a look at their schedule. They also carry college basketball, football, and even sometimes stuff like Cricket. They had some US Open tennis matches on there as well this past fall.
European Soccer – Again ESPN360 carries some La Liga games, Bundesliga, Eredivisie, Coca-Cola League (England’s Championship division), etc. The best deal though is to go to UEFA.com and buy the Champion’s League/UEFA Cup REPLAY package. It’s about $40 for the season and you can watch EVERY champion’s league or Europa league match, or highlights the day after the match. The games are posted at midnight central European time, which is 6 pm Eastern and 3 pm Pacific, so you can virtually watch the match the same day and you won’t have to pay for cable + special sports channels (GolTV, etc.) to watch the champion’s league. This works abroad too, btw. I subscribed when I lived in Botswana…that’s how I watched EURO 2008. It’s certainly not HD, but it’s good enough for me.
Baseball – MLB is the only other league I know of that has put all its games online. I subscribed to MLBTV when I lived in Botswana, so we could keep up with the Red Sox. Back in the states, I downgraded to just the gameday audio ($15 and you can listen to the radio broadcast of any game through the season and post-season…you have the choice of home or away broadcasters). But you can get streaming video if you subscribe to it (I think it’s around $80 a season)…there may be blackouts though. Games are also available through the archives, so you’ll never have to miss a game. Just to reiterate, MLBTV.com is available internationally too.
Other than that, there’s live streaming of some sports on websites like justin.tv, which is definitely good for European soccer matches you can’t find online elsewhere. Not sure how legally kosher that site is though…
And I agree…Hulu is fantastic. I started watching the Daily Show on Hulu instead of off the show’s website because Hulu has fewer and much more tolerable ads (many of them PSAs). And for the trekkies out there, CBS.com has all the original Star Trek series available online
. I watched all 14 episodes of Firefly on Hulu.
One last comment…USE YOUR LIBRARY!!! Libraries have TONS of TV shows and Movies on DVD and IT’S ALL FREE!!! My wife and I LOVE mysteries, and our local library has tons of great British mystery series, a great selection of movies (even very recent ones). Once you get into the habit of going to the library, the 7-day lending period
(or whatever it may be at your library) for movies is not a big deal and our library accounts can be accessed online, so we can re-new items with a couple of mouse clicks if we find we haven’t watched a movie by the due date. I watched the entire BSG series by borrowing the DVDs from my library.
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You know TV isn’t one of those things that I miss when I just don’t pay for it.
Personally, as long as the TV can play an occassional movie I really don’t care about the rest.
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No one seem to bringing up the most important point, Hulu is going to start charging to stream shows, They’re not making enough money off of commercials. You can find tons of information about this by typing “Hulu charging” into Google. Even though, I love the thought of all of this for free and I am currently using a lot of these features, they may only last another couple of months. When Hulu starts to charging it will maybe be $5 a month then it will increase and increase until it becomes the cable bill all over again. The problem isn’t the cable/satellite companies, it’s that networks ask for a 4-10% increase in revenue from them every year for the past 8-10 years.
If you think that the cable/satellite providers aren’t trying hard to fight this just pick a provider and type it’s name and a name of a network, you’ll find tons of results. In the past 5 years I know of 7 attempts by providers refusing to pay the huge increases. The channels would start huge campaigns and scrolling texts under shows reading. ” Your provider is going to remove, (insert favorite show), and that you need to call them up. The providers get hammered with calls about disconnecting service and going with other providers that did pay. These increase end up in your monthly bill and make it go up every year.
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Check this site for exhaustive details on how to watch TV after you cancel cable. If you live in the woods like we do, you might have to cut back to basic.
http://www.cancelcable.com/
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This got us re-evaluating our cable service. We have the full digital package yet watch very little TV. In fact maybe 1 hour a day tops. I’ve been seeing an Ad offering $9 per month for all you can watch movies at Netflix. So I called our cable provider to see about switching to basic cable, which still gives you 70 Channels. This combination would bring the bill down to half or more. And if we can’t find something between 70 channels then read; now there’s a thought.
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I’d like to cut my TV bill out completely. Unfortunately, my cable internet is cheaper with a TV package than without.
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I love HULU. Excellent quality. In my blog, Dollars Not Debt, I talk about my path to debt freedom. Fun stuff!
Dollars Not debt
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What company do you use for internet? Do you still have cable?
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You could eliminate your television bill completely, including the electricity to power it up, by cutting your television in half.
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Don’t forget, too, if you can’t afford the extra bill for paid television, you can also go to Walmart, or any electronics store & buy what they call a converter box, & get local channels completely 100% for FREE. All you have to pay is the electric you use for the tv & box, which is barely anything. I get over 15 local channels & we haven’t paid a dime for them. The only downside is, you’ll want a tall antenna so your signal is stronger, & sometimes, like dish, with bad storms you’ll temp loose the channels, but when its clear they’re back.
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JD, I’m sure you have a ton of stuff to do, but I’m hoping you’ll update this post sometime soon. HULU now charges a fee, and Netflix changed since this post was written. What are you doing now to watch TV?
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I use a roku which streams my internet to my tv–the roku has all of these channels (news, hulu plus, netflix, etc) so I can watch whatever I want. I paid 70 bucks for the roku and there are no monthly fees or anything. I borrow netflix from my sister and paid her 25 bucks for the year–we just have the streaming option. It was one of the best decision I’ve ever made
I would never go back!
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I’ve always enjoyed your site and suggestions for getting our finances in order. Thanks for the time you spend on assisting your readers.
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very good
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