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February 3, 2011 in Business
TV fans drop satellite, cable for options online
Greg Thomson dropped DirecTV a month ago. He now relies on shows streamed from his desktop computer to his television.
(Full-size photo)
Count Jason and Theresa Kirchner among the recent converts to the cord-cutting movement. The Hayden couple decided to switch from traditional TV service to Web-based viewing, saying they wished they’d done it sooner.
They made the decision largely out of irritation at the monthlong blackout of Fox Network shows for regional DirecTV customers caused by a contract dispute with Spokane’s Fox Network affiliate.
The Kirchners decided it was the right time to leap into the future of Web TV.
Jason Kirchner, a public affairs officer with the U.S. Forest Service in Coeur d’Alene, found dozens of articles explaining how the “connected TV” is a less expensive option for replacing satellite or cable TV service.
It cost the couple $300 to quit their DirecTV contract, but they’re happy now not to be paying the satellite service $80 each month.
“The more I looked at what we were spending, the more I felt foolish we hadn’t done this earlier,” Jason Kirchner said.
They own a 10-year-old TV set, but they mostly watch movies on their computer through the Web.
Cord-cutters such as the Kirchners are taking advantage of widely available entertainment on the Web, much of which is free and most of which can be streamed across a home network to a TV set or computer screen.
At the most basic level of cutting are folks simply connecting a decent antenna to their living room TV.
How long the opportunity for free Web TV will continue is open to debate, say industry watchers. Carl Laron, a senior editor for electronics at New York review site Consumersearch.com, said paid subscriptions will become much more common as people gravitate away from paid services like cable.
“People will have to pay something,” as the providers and producers of shows realize they cannot afford to give the content away for free, he said. “So people will either start seeing more ads or they’ll have some form of paid service,” Laron said.
It costs the Kirchners about $8 a month to watch movies online through Netflix, which started as a mail-only DVD rental service. The Kirchners also pay about $25 a month for broadband online service; without it, streaming video becomes a painful experience.
Nate Kraft, director of product management at California-based tech company Belkin, said no one can predict how far the Web-to-TV experience will evolve.
“It’s too early right now to say if this is a tidal wave taking people to all-digitally delivered content,” Kraft said. “But the great thing is, technology keeps changing, bringing more sophisticated, interesting ways to give us video and entertainment choices.”
For most of 2010 the cord-cutting movement was the strongest it’s been, if the number of lost subscribers by cable and other multichannel providers is an indicator. Research firm SNL Kagan finds that 741,000 people in the nation cut cable subscriptions in the third quarter last year, the biggest quarterly dip since the company began tracking data in 1980.
Cable companies and other industry-watchers said that decline was due to a rough economy more than the advent of Web viewing options.
Also propelling the cord-cutting trend is a flurry of dozens of devices that make it easier for people to stream Web video or entertainment to their TVs.
For several years electronics manufacturers have been selling Web-enabled TVs and Web-connected Blu-ray players that stream Internet-based services such as Netflix or Blockbuster movies.
And major electronics makers are churning out new products that get rid of the need for a computer altogether. Devices such as Apple TV, the new Logitech Google TV and the Roku player directly stream video to TV from sources such as Amazon, iTunes, YouTube, Netflix and others. Even game devices, like the Wii and the Xbox 360, now come Web-enabled for streaming video into one’s home entertainment system.
Much of what those devices provide involves a paid subscription, but that hasn’t discouraged consumers looking to control their entertainment options, said Laron.
Using such devices takes the consumer into one of the higher-level options for connected television. At the other, lower end are Spokane residents Greg and Jessica Thomson, who simply connect their desktop computer with a cable into their high-definition TV set. They also jumped ship and left DirecTV recently.
Greg Thomson, a pilot for Horizon Air, said, “What convinced me to do it was realizing I was able to get most of the shows I like for free or at low cost on the Internet.”
The Thomsons and their 3-year-old son, Dylan, have adapted to a reduced TV menu. Their son misses his Disney shows, and Jessica said she misses a few regular TV series. She goes to Hulu.com to watch those TV shows.
What Web television and Web video can’t provide are major sports events, live specials like the Oscars, and some premium TV channels.
Belkin’s Kraft said he sees several barriers keeping Web-based TV from becoming a mainstream success. The chief failing, he said, is the challenge of trying to connect and manage new devices with Web services, many of which are also experimenting with how they provide video and movies.
People have to be willing to face some frustration and challenge in setting up those devices. “You need a robust network in your home,” Kraft said. “Then you have to deal with managing the devices and managing any subscriptions for services, like with Netflix or Amazon.”
When problems arise the home viewer has to find a workaround.
“For a lot of people who just want to sit back and see their shows, it’s way easier to punch in three numbers on a remote and see it right away,” Kraft said.
And yet, that description may not fit the next generation of consumers who are growing up more adventurous than their parents, he said; they might be the people to take on an all-Web-delivered home entertainment package.
Garco awarded $35.8 million Joint Base Lewis-McChord contract 
mikeln on February 03 at 2:20 a.m.
It would be nice to see some choices. Right now, to get any type of service from my satellite company, like a new DVR to replace the piece of crap one I got a couple of years ago, I have to sign a new two year contract with them. I hope dish and direct go out of buisness, killed by their own greed and disregard for their customers needs. As it is right now I’m lucky to get two or three new shows a week, the rest are reruns, some the same day after day. It seems like the programing is nothing more then fillers between the commercials.
JBlim on February 03 at 6:21 a.m.
You don’t need Cable or Dish, just get an antenna. You might already have one. You don’t need an “HD” antenna, just use whatever you already have to get local channels in HD, or build one from scrap (google ‘hoverman’). And like the article says, your HD TV is also a computer monitor.
johnclarke on February 03 at 7:34 a.m.
Dropped cable a year ago, never been happier. Digital TV over the air, plus internet streaming is all I need.
Shadedmuse on February 03 at 8:30 a.m.
Get Shaw Direct, a dth from Canada, you get Detroit networks as well as Seattle with out a waiver. or IVI.tv what is an internet services you can get networks from NYC Chicago la and Seattle without a waiver.
herewegoagain on February 03 at 8:33 a.m.
Immigration Customs Enforcement (ICE a division of our famous Homeland Security) the past 2 days has been seizing internet entertainment sites.
I use to watch sports on atdnet.com but these idiots have seized and shut it and so far 70 other internet viewing sites down.
They can’t catch people trying to harm or have already harmed us ( such as the guy hiding in caves and mountains for years) but they can shut down people’s enjoyment.
I suppose they’re sitting around the table congratulating each other about capturing those dreaded sport sites that were such a threat to the Nation.
Thanks George for implementing Homeland Security,what a waste of my tax dollars.
herewegoagain on February 03 at 8:38 a.m.
Read it here:
http://www.huffingtonpost.com/2011/02/01/atdhe-sports-streaming-website-seized_n_817224.html
Jimmy on February 03 at 8:42 a.m.
Lame, I used adthe a lot. myp2p.eu is just as good if not better though.
herewegoagain on February 03 at 8:45 a.m.
Hey, thanks for that link
spokanecougar on February 03 at 8:56 a.m.
All I know is Comcast sucks. Now that they bought NBC I am sure everyone will be seeing a raise in their comcast bills here pretty soon, I mean, come on, who else is going to pay the billions it costs to buy NBC.
Ninch on February 03 at 9:11 a.m.
I added DirecTV FOX west (LA) for $2.50/month until the KAYU dispute is resolved. I think paying $300 to get out of DirecTV contract was not too wise.
Note: In response to one comment…One can get a new upgraded DirecTV receiver by paying full cost for it rather than signing a new contract or any contract.
Problem with broadband TV is that it does not always have the capacity for large numbers of users who are utilizing high levels of downloads and streaming. I stream Netflix which sometimes is affected. Same with streaming TV shows and movies on my computer where quality of the “stream” is often missing.
de3 on February 03 at 9:27 a.m.
The multi-channel distribution business model is broken. They require customers to purchase huge packages of channels that are never watched, all so you can watchful a handful.
Years ago, there was a brief push for providing a la carte channels - that is, buy only the channels you need. But the cableco and satelcos said - can’t be done.
Well, it can and it is. I haven’t watched TV in 2 months so we canceled satellite service on Monday. What little we will watch can come from Netflix DVDs or online or over the air.
The cable cos. need to adapt and fast but instead of competing, they will lobby Congress to pass laws against online viewing and lobby their DSL competitors to enact caps on total data per month.
509ifyourlucky on February 03 at 9:54 a.m.
JBlim and johnclarke, Antennas are only good in a certain mileage range. The Tirane has to be just right. Spokane area is rotten for both. Right now the networks are showing a lot of reruns, Also have you noticed how some shows are migrating to other networks. I have dish network ( with a Los Angeles channel as a $2 extra) but I watch the news online because Spokane news is not should I say worthy to even be news.
johnclarke on February 03 at 10:11 a.m.
Um, I hooked the cable into the antenna spot and got like 40 digital channels plus all the analog. I get my news on digital channel 7, PBS and the BBC program. This is the only news worth watching…and of course I feel sophisticated listen to all those British accents. For other content, streaming on line. This is the future of TV, cable is dead.
monkeyman on February 03 at 10:26 a.m.
What if China shuts down the internet traffic. …during superbowl? :)
Keep the rabbit ears handy.
(China did re-route internet traffic without US’s knowledge, labeled as an act of eavesdropping. Happened a few months ago.)
jenniferwe on February 03 at 11:13 a.m.
It’ll be a steady and painful decline for the Cable Co.’s Look at video rental business….Only a few shorts years ago, I remember looking forward to going to Blockbuster to get a new release and just browse. Not anymore. Now the internet is changing tv viewing habits. I have recently begun getting almost all my TV online through a service called TVDevo.comIt’s easy and there is tons more available to watch compared to the cable package I used to have.
decturkey on February 03 at 12:32 p.m.
Guess I’m just wondering who everyone is using for their internet service?
kkrimmer on February 03 at 3:33 p.m.
With TBS (http://www.tbs.com/) and HULU (http://www.hulu.com/) not sure why anyone needs expensive cable.
JBlim on February 03 at 10:33 p.m.
I see Homeland Security has taken down channelsurfing.net too. Funny how TV-rebroadcaster pirates are now terrorists. I can really sleep better at night now. I always wondered how those guys could lawfully rebroadcast those channels, not realizing they were terrorists trying to destroy our economy.
herewegoagain on February 04 at 8:50 a.m.
Yes, I feel so much safer knowing HLS has captured all those internet streaming sport sites that were part of the ” Axis of Evil”
toms on February 09 at 3:05 p.m.
hey, there’s still the seattle startup Ivi.Tv that is streaming a load of U.S. affiliate programs, including one Fox channel last I looked. I’m just saying…