Streaming in the Cord-Cutting Era

A lot of people have been cutting the cord from cable TV and satellite providers to get more flexibility in choosing their content and not having to pay for content they’ll never watch. But the plethora of streaming content providers could create an environment that’s not a whole lot different from the cable/satellite experience. And, you might even wind up paying just as much money, if not more.

We came away from a recent Disney conference with the distinct feeling that Netflix is destined to go the way of Blockbuster, at least in terms of being the only source for content. Remember them? They’re the company that basically had a lock on the videocassette rental market until the worlds of Netflix and On Demand made video rentals as easy as pushing a few buttons on your remote. If you want to rent a DVD, you can order it from Netflix or find a Redbox machine.

Most people, however, prefer to get their video content via the internet, cable or satellite, and those who hold the rights to that content are getting ready to scale up an access war. Netflix, in addition to producing its own content, has also provided feature films and old TV shows to its own base of subscribers. They pretty much had the market to themselves, but that’s changing.

In case you weren’t paying close attention, Disney, which makes films, owns the ABC network and provides sports programming through ESPN, recently bought Fox’s movie studio and many of its non-news TV assets. That means Disney now has a huge library of content, and they’ve already started to move some of into “+” Channels, such as Disney+ and ESPN+. This allows them to stream selected content for a few bucks a month more, and you can’t get it anywhere else.

Disney is not alone. Netflix, Amazon and Hulu all have exclusive content in addition to hours upon hours of movies of all ages and genres. And each has its own subscription fees. HBO, Showtime and a few others still offer movies and original programming, and YouTube and Sling offer packages of TV content now found over the air (remember broadcasting?) or offered by various cable and satellite companies.

Finally, the field is getting more crowded with the entry of Apple TV+ and its original shows and movies.

Regardless of whether your content is delivered through a cable box or streaming internet or both, there will be a lot of hands out there for your money. And in all likelihood, you’ll pay for more content than you want unless somebody decides to offer single events, single movies or a single series of programming.

You’ll have to decide whether to cut the cord based on what you perceive will be your best value. The cable companies have an incentive to keep you because they can sell advertising. They also provide your internet access in most cases, and that gives them leverage in controlling what you pay for it.

The Triple Play packages (TV, internet and phone) are a staple of their business, and many subscribers find their balance of TV content and internet speed. One selling point for the packages is that you don’t use any data to watch the content delivered over the cable. The cable also provides better quality in most cases than high-def content streamed over a Wi-Fi network, though you can build a network to handle almost any need.

Cutting the cord but keeping the internet service could raise costs in two ways. First, if you need more bandwidth for streaming, it will cost more as a stand-alone service. Second, you’ll likely face data caps, which could limit how much streaming video you can watch or the speed at which you can watch it. Of course, more money can mitigate the cap issue, but don’t forget, the content providers are looking for more money for what they bill as premium content.

If you’re highly selective in the premium content you watch, cutting the cord and finding the right internet service may pay for you. But if you need the wider range of choices, you just might want to keep that cord connected.

We can help you make a decision by looking at your Wi-Fi network and the internet capacity you’ll need to support your viewing. Call us – 973-433-6676 – or email us to discuss your needs and set up an evaluation.

Gigabit Service

For Verizon customers, 1-gigabit service for $70 per month sounds so good. But it may not be the service of your dreams. There’s a lot going on here, so let’s try to sort it out.

First, the initial offer is for new customers only. That shouldn’t surprise any consumers for anything we buy. Businesses routinely offer deep discounts to get new customers in the fold, and it can have one of two effects: 1.) it can upset existing customers and encourage them to churn through all their service providers, and 2.) it can be an attractive sample to get customers addicted to a certain level of service and immune to steep price increases later on.

For new customers looking to sign up, it’s not simply a matter of paying your $70 and getting a fast internet connection. There may be additional fees and required equipment upgrades (we’ll get to those shortly) on top of the initial fee, and there is a lot of confusion about how long you can keep the introductory rate before you get a big price increase. Verizon may be offering 1-gig service to existing customers as you read this newsletter, but we haven’t seen a clear description of prices for various packages as we write it.

Second, do you need that big a pipeline? Most of us don’t. Large online stores that sell lots of things through ecommerce are likely to need it. Businesses that send massive amounts of data through business applications, such as enterprise systems for huge, highly automated manufacturing systems, need it. Big, upscale hotels that offer streaming capability for their guests need it. Smaller businesses that push less data through their applications and home users who stream movies and TV programming probably don’t need it. Netflix, for example, recommends the following download speed in megabits per second (MBPS) per stream for playing TV shows and movies through its service:

  • 0.5 required broadband connection speed
  • 1.5 recommended broadband connection speed
  • 3.0 recommended for SD quality
  • 5.0 recommended for HD quality
  • 25 recommended for Ultra HD quality

Do your own math for what you need.

Third, do you have a wired network in place to use all that speed? Only a wired network can do it, and that’s why we recommend wiring office and commercial space for business. We also recommend it for new residential construction, and we recommend it if you are building a theater in your home for a big Ultra HD system. If you have devices connected to your gateway or router, you’ll get the connection speed. Any devices connected through Wi-Fi will get a slower speed, which can still be adequate based on Netflix’s recommendations.

Fourth, you won’t get gig-per-gig speed from the source. If Netflix recommends 25 MBPS for Ultra HD quality, they’re not pushing it out at 1 gig. The big businesses that need to get their data pushed out at that high a speed take advantage of a limited number of pipelines, and they pay for it.

Finally, how will you match your service to the router and cable boxes from your internet service provider (ISP), whether it’s Verizon or Comcast, and what are you willing to pay? Streaming aside, you can pay a hefty monthly fee for cable boxes capable of delivering programming and recorded shows to multiple TVs in your home. You can reduce your monthly outlay by replacing the cable boxes with a cable card that can work with four or six TVs, depending on the card. You’ll give up On Demand programming and on-screen caller ID (if you have a landline through your provider), but that may better fit your needs.

We can review your internet-connection needs for business or home and help you match equipment options to fit your budget. We can do the installation and setup – or walk you through the process and then use remote technology to help you with the setup. Call us – 973-433-6676 – or email us for an appointment.