The first movie theaters in America were called “nickelodeons” because it cost five cents to get in. Today we can watch movies at home on a variety of channels, and though it costs a lot more than a nickel to view, we can access those channels through a variety of delivery systems such as cable, satellite, and internet streaming. The first two are contract services delivered by either a landline or a dish. The latter is available online or on the go and requires no additional hardware. Just download an “app” and you’re all set.
Increasingly, younger consumers are choosing to “cut the cable” (a euphemism for getting rid of cable or satellite TV services) and instead are opting to watch their favorite movies or programs in à la carte fashion on their television or personal device without being technically or financially tethered to any one provider. Today’s cable-cutters generally cite high cost as their reason for changing providers and who can blame them?
No doubt both satellite and cable TV provide superior video quality compared to streaming, and the total number of channels available is far greater as well, but you pay through the nose for those privileges.
Sure, DirecTV offers three different packages ranging in price from $69 to $159 dollars per month, but if you have receivers in multiple rooms, then prepare for sticker shock, because each additional receiver runs an extra $7 per month. Then there’s $10 for high definition, a mandatory $13.99 for a “regional sports fee,” $20 for various state and county taxes, and, if you expect to receive technical assistance, you have to purchase a “Protection Plan” which runs $20.99 per month. It’s like dealing with the Mafia, except without the personal touch. Add up everything and you can expect to pay anywhere from $250 to $300 per month for DirecTV.
But it gets worse. For example, if you subscribe to a complete sports package which includes every standard ESPN channel, you still have to pay an additional fee to watch games of regional interest if your team happens to be playing on ESPN+. And if you’d like to watch some of the new TV shows on Cinemax or Disney, you have to ante up an additional fee even though you’re already paying for their parent channels. You’d think that as much as DirecTV charges, you’d be able to access those games and shows as part of your “package”. Think again.
OK, so say you decide to divorce yourself from cable or satellite. Sure, you can save money, but only if you limit the number of streaming services. YouTube TV costs $72 per month, Netflix is $20, Hulu is $89, Paramount+ goes for $12, Apple TV+ is $15, Peacock $12, Amazon Prime $15, FUBO TV $89, Sling TV $55, and Disney+ is $20, just to mention a few.
Now suppose your favorite TV shows are spread out among all of these streaming services. Let’s say I love Hijack and Slow Horses on Apple TV+. And suppose I just can’t do without Lawmen, Tulsa King, and The Good Fight on Paramount+. Suppose I’m addicted to Andor and Loki on Disney+, or Obliterated on Netflix. And I just can’t miss The Boys on Amazon Prime, Monarch on HBO Max, The Continental on Peacock, and Reservation Dogs, The Drop Out, and Goosebumps on Hulu. If you subscribe to all of those streaming channels in order to watch all of your favorite shows, then suddenly, your monthly bill is higher than most cable or satellite packages.
In analyzing the hidden and not-so-hidden costs of watching TV, I am reminded of a well-known complaint that is often uttered about taxes and how they mount up: “First they get you on sales tax, then property tax, then income tax. The government is just trying to nickel and dime us to death.” That’s how it is with TV providers. Little by little those incremental, add-on costs can strain your budget. Welcome to “Nickel and Dime TV.”
Nickel and Dime TV
The first movie theaters in America were called “nickelodeons” because it cost five cents to get in. Today we can watch movies at home on a variety of channels, and though it costs a lot more than a nickel to view, we can access those channels through a variety of delivery systems such as cable, satellite, and internet streaming. The first two are contract services delivered by either a landline or a dish. The latter is available online or on the go and requires no additional hardware. Just download an “app” and you’re all set.
Increasingly, younger consumers are choosing to “cut the cable” (a euphemism for getting rid of cable or satellite TV services) and instead are opting to watch their favorite movies or programs in à la carte fashion on their television or personal device without being technically or financially tethered to any one provider. Today’s cable-cutters generally cite high cost as their reason for changing providers and who can blame them?
No doubt both satellite and cable TV provide superior video quality compared to streaming, and the total number of channels available is far greater as well, but you pay through the nose for those privileges.
Sure, DirecTV offers three different packages ranging in price from $69 to $159 dollars per month, but if you have receivers in multiple rooms, then prepare for sticker shock, because each additional receiver runs an extra $7 per month. Then there’s $10 for high definition, a mandatory $13.99 for a “regional sports fee,” $20 for various state and county taxes, and, if you expect to receive technical assistance, you have to purchase a “Protection Plan” which runs $20.99 per month. It’s like dealing with the Mafia, except without the personal touch. Add up everything and you can expect to pay anywhere from $250 to $300 per month for DirecTV.
But it gets worse. For example, if you subscribe to a complete sports package which includes every standard ESPN channel, you still have to pay an additional fee to watch games of regional interest if your team happens to be playing on ESPN+. And if you’d like to watch some of the new TV shows on Cinemax or Disney, you have to ante up an additional fee even though you’re already paying for their parent channels. You’d think that as much as DirecTV charges, you’d be able to access those games and shows as part of your “package”. Think again.
OK, so say you decide to divorce yourself from cable or satellite. Sure, you can save money, but only if you limit the number of streaming services. YouTube TV costs $72 per month, Netflix is $20, Hulu is $89, Paramount+ goes for $12, Apple TV+ is $15, Peacock $12, Amazon Prime $15, FUBO TV $89, Sling TV $55, and Disney+ is $20, just to mention a few.
Now suppose your favorite TV shows are spread out among all of these streaming services. Let’s say I love Hijack and Slow Horses on Apple TV+. And suppose I just can’t do without Lawmen, Tulsa King, and The Good Fight on Paramount+. Suppose I’m addicted to Andor and Loki on Disney+, or Obliterated on Netflix. And I just can’t miss The Boys on Amazon Prime, Monarch on HBO Max, The Continental on Peacock, and Reservation Dogs, The Drop Out, and Goosebumps on Hulu. If you subscribe to all of those streaming channels in order to watch all of your favorite shows, then suddenly, your monthly bill is higher than most cable or satellite packages.
In analyzing the hidden and not-so-hidden costs of watching TV, I am reminded of a well-known complaint that is often uttered about taxes and how they mount up: “First they get you on sales tax, then property tax, then income tax. The government is just trying to nickel and dime us to death.” That’s how it is with TV providers. Little by little those incremental, add-on costs can strain your budget. Welcome to “Nickel and Dime TV.”