If you've been paying attention, you know that cord cutting is all the rage around the world. Cable TV companies are losing subscribers at a rate never seen before in history, and it has nothing to do with illegal services like Popcorn Time.
The growing popularity of apps like Plex and Kodi, combined with the affordability of Netflix and Hulu, has made it easier than ever for users to watch locally saved videos and on-demand TV shows and movies. People's reliance on traditional television for their entertainment needs has never been less.
But cutting the cord isn't right for everyone, especially in the United States. As a result, a new phenomenon-dubbed "cord shaving"-is beginning to gain traction.
According to eMarketer, by the end of 2017, 22.2 million Americans had canceled their cable television subscription. It marked a 33 percent increase from the 16.7 million that were canceled in 2016.
However, for many more Americans, there is a catch. Unlike many countries, the largest cable television companies are also responsible for broadband networks in the United States. Worse still, there is hardly any broadband competition. Unless you live in a large metropolitan area, you'll be lucky to have a choice between two.
For cable cutters, this is problematic. The web is full of stories of people who were well-armed to keep their cable TV subscription under threat of a higher monthly cost for an Internet-only package.
So what is the solution? For many people, the answer is to try shaving the cord instead. But what is cable shaving? Who is it suitable for? And how much money can it save you each month?
At its most basic, cable shaving is the idea of keeping your cable TV subscription but canceling all the expensive channels, packages, and add-ons. As a result, your bill is significantly reduced, but you still retain some of the essential basic channels, along with your Internet connection.
However, the term is increasingly being applied to companies that offer "skinny packages." A slim package generally refers to fewer channels, but more choice and lower cost. The best examples are Sling TV, DirecTV Now and PlayStation Vue Sling TV vs. DirecTV Now vs. PlayStation Vue:How do they compare? SlingTV vs. DirecTV Now vs. PlayStation Vue:How do they compare? In this article, you'll learn the differences between the three major OTT Internet TV streaming services:Sling TV, DirecTV Now, and PlayStation Vue. Read more.
The practice is starting to cause pay-TV networks a headache. Channels like ESPN, Disney, CNN, Nickelodeon and the Food Network have seen their viewership numbers drop since the beginning of the decade.
The same story is reflected in the top 40 distributed cable channels. Estimates suggest that when combined, the top 40 channels have lost more than six million subscribers since 2010. And the rate of decline is increasing. ESPN, for example, reached 7.4 percent fewer US households in 2017 than it did in 2015.
Cord shaving is rapidly gaining traction. In 2012, basic cable plans made up just 8 percent of all paid TV subscriptions. Today, the figure is creeping towards 20 percent.
Sport has traditionally been one of the biggest draws of cable television. But it's starting to lose its dominance.
ESPN, for example, managed to grow so big due to a lack of competition. It was the only channel that offered the sports games that people wanted to watch, and thus was able to charge cable TV companies a significant fee. Additionally, it prevented cable television providers from offering the channel in a "Sports" package. For viewers, subscribing to cable inevitably means receiving and absorbing the cost of the network.
To the delight of shavers, the situation is changing. More and more sports leagues are cutting out the middleman and selling directly to viewers. WWE is setting a trend..
Also, companies like Amazon and Facebook can now outbid TV networks for broadcast rights. There is even speculation that Amazon and Facebook will bid on the most expensive sports package in the world:the English Premier League.
Another group of people who can benefit are news junkies. Channels like CNN and Bloomberg are often included in one of the cheapest packages.
People who enjoy having continuous news 24/7 in the background 5 Free Streaming News Channels For Cord Cutters 5 Free Streaming News Channels For Cord Cutters One of the biggest drawbacks of canceling cable TV is the availability of news . Or the lack of it. Fortunately, things are changing, and there are plenty of free cord-cutter news channels here. Read More could miss out on bundles that include channels with content that will eventually make its way to Netflix or Hulu, all the while keeping abreast of world affairs.
The last group that can benefit from cable shaving instead of cable cutting is anyone who suffers from a slow internet connection. 6 Things That Could Be Slowing Down Your Home Network. Your home, home networking knowledge becomes essential. But there are many factors that can slow down a home network, often quite easy to fix. Read more.
The cord-cutting nature means you'll need to use your web connection to receive all the content you watch, both live and video-on-demand. And while a slow connection shouldn't affect your ability to watch video on demand (you can just wait for it to buffer), it will severely affect your ability to enjoy live TV.
Wire shaving can leave you with some live TV options while relying on Netflix and others for the most popular shows.
The amount of money you can save depends on how you plan to shave the cord.
As explained earlier in the article, there are two main ways to shave the cable. You can downgrade your cable TV subscription to the cheapest, most basic package, or you can cancel your TV subscription and sign up for a service like Sling TV, DirecTV, or PlayStation Vue.
Keep in mind that the average cable TV bill in the United States was $103 per month in 2017.
It's not practical to see all the TV packages offered in the United States, so let's review some headline numbers.
If you're a Comcast customer, you can drop your package to $39.99/month if you're willing to accept 25Mbps Internet speed and no TV. If you want to keep 10 channels, you will have to pay $49.99/month.
However, all 10 channels will not be able to drive. You can expect the usual litany of air networks (which can be received for free if you have an antenna. What can you watch with a TV antenna? What can you watch with a TV antenna? How to get access to many of the the big networks? I probably would. Well, it turns out there's a step up from the trusty TV antenna. Read More Garbage loaded like the home shopping network.
Another major network, Charter (formerly Time Warner), uses the tactics we mentioned above. Their cheapest internet package is $29.99/month, but it includes 125 channels (mostly junk). An internet-only subscription will cost you up to $64.99/month.
If your internet speed is fast enough, you may decide to invest in a thin web-based package.
The cheapest Sling TV package is $20/mo, the cheapest DirecTV Now package is $35/mo, and the cheapest PlayStation Vue is $39.99/mo.
Using these figures, we can conclude that the average price of a basic cable TV is around $30, as is the cost of a basic slim package. You can add a Netflix subscription and a Hulu subscription and still pay less than $80 per month. That's at least a $25 savings compared to the average American bill.
For the best savings, though, sacrifice a skinny pack. Keep your TV package to a minimum and buy an antenna. You could save more than 50 percent on the average bill.
Now we want to hear from you. Do you prefer the idea of cutting the cable or shaving it? What do you think are the pros and cons of the two different approaches? Maybe you've even become a razor. If so, what advice can you give to others considering doing the same?
