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August 18, 2006, Newsletter Issue #27: Costs of Digital Cable vs. Satellite TV


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Tip of the Week

All of us see advertisements out there comparing satellite television to digital cable. Here, we want to focus on the costs of each to give you a good comparison of cable vs. satellite. Based on averages, here are some of the costs that you can expect from each.

Setup Costs – Cable vs. Satellite. When you initially subscribe to either satellite or digital cable television, there will be set-up fees. The differences are easy to see based on the equipment required for the subscription. With satellite TV, you will need to purchase the equipment. You will also need to install the satellite TV system, which can be done by yourself, but really should be left to professionals for the best reception and typically is done free of charge. When shopping, also look out for free  equipment specials that most satellite providers will offer.

Set-up fees for digital cable are also low because the only piece of equipment required is a digital converter box.

Verdict: Setup fees for Digital cable and satellite TV are similar.

Monthly Fees – Cable vs. Satellite Here is where satellite takes an edge over digital cable. The monthly fees for digital cable will vary greatly on your subscriber, but you can count on paying more for the more channels that you want. On the other hand, satellite television will come with the majority of the channels included. Add on’s for satellite boil down to exclusive offers such as the NFL Sunday Ticket™,  expanded movie packages, and pay-per-view events.

Verdict: Monthly fees for Satellite are lower then Cable.

In the end, the setup costs of digital cable vs. satellite television are similar.  The key is to determine which matters more to you: setup costs or monthly fees. But if selection matters most and you would rather have lower monthly costs, satellite TV is the choice for you.



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