Cord Cutting now will make us all pay more money for less content later!

I am a big fan of cord cutting. Unfortunately, the cable companies have us cornered. Providing both internet connectivity and content (cable programming). There is only way any one person can tell the cable companies they are not happy and that is with their wallet. They dump cable.

The trend has been growing so fast, cable companies are getting worried. But you know they didn’t get rich and eliminate competition by being stupid. Since they own the data pipes to your house AND provide content they still own you. See the graphic below.

Cable Internet Costs

A few years ago I checked internet only prices in the Washington DC area. Comcast, Verizon and Cox all provided internet only services averaging $30-$45/month. With the cord cutting trend picking up steam the cable companies got smart and started offering higher bandwidth connections of 50 MB up and down for more money. Keep in mind that you only need 3-8 MB down to stream 1080p HD.

Recent social media discussions show that in parts of the country Internet only is now costing $60 a month for the same fiber link to your house. Sure you get higher speeds, but usually more than you need.

So let’s say you cut the cord, spend $20-$30/month on subscribed streaming content, you might end up with 15-10 channels and maybe live TV. That’s $60 for internet and $20 for content which equals $80/month. On the other hand for the same $80 you get the same internet connection and 400 plus channels of live TV.

So how or what do you win? The cable companies are still getting their money, and you are getting less content.

The Fix

There is only fix for this situation and that is competition. The removal of restrictive deals with cities which give monopolies to the cable companies and the Federal Government with laws and regulations that stimulate competition. This is a much harder problem to fix if you really want to cut the cord and not be at the mercy of the cable companies.

A small hope for a small number of consumers is to get the internet only, put up an indoor/outdoor HD antenna, and get free live HD programming which an old law says broadcasters must continue to provide.

Good luck.

Homemediaguy

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