What should I replace my cable box with?

Option 1: Netflix only

Now that I’ve determined that I can save money by canceling my cable package, the question is: what should I replace it with?  For $9 $11 a month, I can subscribe to Netflix and gain access to a huge Blue-Ray/DVD catalog of movies and television shows.  This is a simple and elegant solution — I already own a Blue Ray player and thus wouldn’t have to purchase equipment to get going.  Plus, the savings will be apparent immediately as I’ll have about $90 extra in my back account each month.

Option 2: Niche Devices

If I am willing to spend a little money now, I can set up a system that will also give me access to movies and TV shows on demand.  There are plenty of niche devices available that are designed to provide access to specific online services.  Here are some options:

1. Boxee Box ($200): Provides access to free content available through various websites (including CBS, Hulu, etc); not out yet so I can’t speak to it’s limitations.

1. TiVo (~$200): can be used with Over-the-Air HD antenna for free HD broadcasts plus Nexflix and Amazon on Demand downloads; so far, no access to other content providers like Hulu, Boxee, etc.
   
2. Apple TV ($229): access to iTunes music, movies and TV shows.  ATVFlash add-in for Boxee, XBMC, web browser, etc; No Silverlight or Flash which will prevent Netflix streaming.

Here’s the problem: none of these devices can do everything.  With this set up, I’d need at least three devices to access content on four different providers!  Also, what if I want to look at content on another yet another provider, like Hulu?  Hulu content is available through Boxee as of this writing, but that could easily change, and that could result in having to buy yet another niche device.  Not only would a set up like this be cumbersome but it could be costly as well.

Option 3: Mac Mini

It strikes me that in order to have access to every content provider, I really just need to hook a computer up to my television.  I am currently spending $1236 a year on cable television; for a one time investment of $599, I can get a brand newMac Mini, which will give me access to all of the sites I mentioned above and more.  In a little less than six months, I’ll start saving money.  Of course, I could always go with a cheap PC or a refurbished mini and recoup my investment sooner.  Either way, the more I think about this, the harder it is to justify the cost of cable television.

In my previous posts on the Quest for Cable Freedom, I failed to mention what’s driving me to do this now: I am determined to cut the cable cord before my current “special” rate expires. The problem is: every six months or so, I have to call the cable company to renegotiate my contract. When I explain that I can’t afford to pay their regular rate, they put me on a “special deal” which expires in six months. This is often the same deal that they offer to new subscribers. In any case, if I forget to follow up before the special rate expires, I’m stuck paying the regular rate for a month or two, which costs an extra $50-80! My equipment is now on order: here’s what I selected:

Equipment/Set Up Costs

1.  Mac Mini ($599-799): I was hoping to find a refurbished Mac Mini but they seem to be a rare commodity these days.  If I hadn’t imposed such a strict timeline on this project, I could have easily waited for a good deal to crop up.  Time being of the essence, I took the plunge and bought a new Mini from Apple knowing that I’d be able to recoup the cost in six to eight months.

2. Mini Display Port to HDMI Adapter ($8.55): The Mac Mini actually has two options for display output but either way, you’ll need a special cable and/or adapter to connect the Mini to your television.  Since my receiver and television both have HDMI connections, I decided to go with this cable from Monoprice.  Unlike traditional HDMI connections, this one will not provide sound in addition to the picture.  This is a limitation of the Mac Mini thus an additional cable is required for set up.

3. Toslink to Mini Cable ($2.58): This cable with a built in adapter will output 5.1 surround sound from the Mac Mini to your receiver or television.

In my next post, I will write about putting my new set up in place!

I used to think that I was an atypical cable television subscriber simply because I don’t watch very much television.  I have a cable package that includes a ton of channels plus a few premium selections.  I never channel surf and thus have no idea which channels are actually included in my cable package.  Any given week, I may sit down for an hour or two to watch the latest series offering on HBO or Showtime but that’s really about it.  Why exactly am I paying over $100 a month for a service that I hardly use?

As it turns out: I’m not the only person asking myself this question.  Recently, a bunch of articles have been published about the Quest for Cable Freedom.  Here’s typically what happens: the author purchases one, two or three different devices that are meant to enhance the home entertainment experience.  Each device provides access to a certain online service where movies and television shows can be viewed for free or for purchase.  By working with this combination of devices, the author hopes that he or she can sever the cable ties without losing access to valued TV content.  The results vary: 1) the gadgets don’t work as well as advertised, and thus get tossed in the garbage or 2) the set up meets the needs of the author, though it may not necessarily be intuitive.

I’ve been pondering the Quest for Cable Freedom for a few weeks now by reviewing my watching habits, prioritizing my needs and weighing the costs.  Here’s what I’ve discovered:

How many hours of television am I watching each month?

Here’s a breakdown of what I watched in 2009:

1. The Tudors (Season 3) – 8 episodes, 60 mns (Apr 5th-May 24th)
2. Dexter (Season 4) – 12 episodes, 60 mns (Sept 27th-Dec 13th)
3. Nurse Jackie (Season 1) – 12 episodes, 30 mns (June 8th-Aug 24th)
4. United States of Tara (Season 1) – 12 episodes, 30 mns (Jan 18th-Apr 5th)
5. Secret Diary of a Call Girl (Season 2) – 8 episodes, 30 mns (Sept 11-Oct 23rd)
6. Tracy Ullman’s State of the Union (Season 2) – 7 episodes, 30 mns (Apr 12th-May 24th)
7. Weeds (Season 5) – 13 episodes, 30 mns (June 8th-August 31st)
8. Big Love (Season 3) – 10 episodes, 60 mns (Jan 18th-Mar 22nd)
9. True Blood (Season 2) – 12 episodes, 60 mns (June 14th-Sept 13th)
10. Bored to Death (Season 1) – 8 episodes, 30 mns (Sept 20th-Nov 8th)
11. Hung (Season 1) – 10 episodes, 30 mns (June 30th-Sept 13th)
12. The No. 1 Ladies’s Detective Agency (Season 1) – 8 episodes, 60 mns (Mar 15-Apr 29th)
13. Real Time with Bill Maher (Season 7) – 30 episodes, 60 mns (Feb 20th-Oct 16th)

This list may look long, but on average, I watched about 8 hours of television per month.

How much am I paying for my cable subscription?

How much money am I spending per month for 8 hours of television?  I am currently on a “special” rate with my cable company which is slated to expire in two months. Last month, I paid $83.99 (plus $5.00 in taxes) for the service.  I should disclose that I get access to cable via a CableCard nested inside a TiVo, so I’m not paying to rent a cable box or a remote (plus taxes on top of those items).  Long story short, last month I spent $90 on cable plus $13 for the TiVo for a grand total of $103.  Divide this total by my 8 hours of usage and it turns out I spend a whopping $12.88 for each hour of television that I watch!  I shudder to think what this figure will be when my special cable rate expires.

Given my viewing habits, what exactly am I getting out of my cable subscription?

Here’s what it boils down to: I am paying a pretty penny for real time access to original programming on premium cable channels.  Last night’s episode of “Big Love” cost me $13; I could buy the entire third season on DVD for $32.99.  If I am willing to wait a few months, I can save a lot of money.