Each month, I pay AT&T $205.02 for its U-Verse and broadband Internet service.
That’s $83 a month for the U200 plan, $16 a month for HBO, and something called an "HD Technology Fee" for $10 per month … plus a whole bunch in taxes and government fees. My Internet fees come to $70.75 after tax, for speeds up to 24 Mbps (although I’ve never seen it anywhere close to that).
Before I switched to U-Verse, I was a Time Warner/RoadRunner customer. The speed, channels and prices were similar, but the service was glitchy, and the customer service was miserable.
Either way, I’m paying a lot of money for Internet and the maybe 10 channels I watch on my TV.
Like you, probably, I watch a lot of content on my iPad, via Netflix, Amazon Prime Video and HBO Go (which is included in my $16 per month plan). I watch some network TV, as well as shows on AMC. I watch Brewers games on FS Wisconsin. I usually read my national/international news online, but if I need to see it, I watch CNN. My kid watches a few shows on Nickelodeon, the Disney Channel and the Cartoon Network, but she prefers viewing content on "her" iPad.
That’s about it, though. I could certainly live with out most of the 360 channels I guess I receive. It would be nice to spend less than $2,500 each year on Internet and TV.
So, I get why so many people want to cut the cord. With almost everything – but not really everything – available in an online on-demand version, the cable or satellite TV model is pretty archaic. And today, AT&T acknowledged this by unveiling DirecTV Now, a streaming service that will go head-to-head with cable (and its own soon-to-be-discontinued U-Verse) service, for $35-70 a month with 60-120 channels and a free Apple TV. It will be available on pretty much every platform except Roku at first. The first version will not have any sort of DVR or pausing abilities.
The packages break down to this:
- Live a Little: $30 a month (60+ channels)
- Just Right: $50 a month (80+ channels)
- Go Big: $60 a month (100+ channels)
- Gotta Have It: $70 a month (120+ channels)
"We’re extending our entertainment portfolio for those who value premium content but also want more TV freedom suited for their lifestyle, whether watching at home or on their mobile devices. This is TV your way," said AT&T Entertainment Group CEO John Stankey.
With a free trial offer, this is a pretty compelling offer, but there are some questions as to what the details are (their website is just a landing page). CBS and Showtime aren’t on board, which means if you care about receiving local TV stations, you’ll need an over-the-air antenna. That’s not something I’d monkey around with, because changing the input on my TV every time I want to switch from local to paid stations is more work than I’m looking for from my couch. Until DirecTV Now deals with that, it won’t be a complete replacement for cable or satellite.
Of course, others are dipping their toes into this water. Dish Network has Sling TV, Sony has the Playstation Vue. Hulu does some of this. Apple and Google may not be far behind. None of this content, including DirecTV Now, is in 4K, though, so my brand new Black Friday TV is mostly stuck in a world of "upscaling."
Again, have we come far enough for me to switch? Is technology ready for my parents to switch, who just want to press one button on their remote and watch TV?
"No one has really delivered the right combination of content, price and ease that will get people to make that call to their current provider and say sayonara," said Forrester analyst Jim Nail.
Interestingly, I interned for a non-profit called The Interactive Television Association in 1996. They were discussing the same issues back then, and that was 20 years ago. I would’ve imagined this would all be figured out by now, but it’s not.
So here’s my plan: when someone unveils a program that really replaces my cable (and I’m fine with way fewer channels), and I can watch its content on any platform, I’ll cut the cord. DirecTV Now may be the answer, but I want to see it in action first.
Until then, I guess I’ll grudgingly keep the status quo. It’s just a matter of time.
Andy is the president, publisher and founder of OnMilwaukee. He returned to Milwaukee in 1996 after living on the East Coast for nine years, where he wrote for The Dallas Morning News Washington Bureau and worked in the White House Office of Communications. He was also Associate Editor of The GW Hatchet, his college newspaper at The George Washington University.
Before launching OnMilwaukee.com in 1998 at age 23, he worked in public relations for two Milwaukee firms, most of the time daydreaming about starting his own publication.
Hobbies include running when he finds the time, fixing the rust on his '75 MGB, mowing the lawn at his cottage in the Northwoods, and making an annual pilgrimage to Phoenix for Brewers Spring Training.
