Cable Cord-Cutting Workshop - Informational Packet - Randy Hunt State Representative

Cable Cord-Cutting Workshop
                Informational Packet
                         March 2018

                        Sponsored by:

     Julian Cyr – State Senator, Cape & Islands District
 Will Crocker – State Representative, 2nd Barnstable District
Vinny deMacedo – State Senator, Plymouth/Barnstable District
  Randy Hunt – State Representative, 5th Barnstable District
  Sarah Peake – State Representative, 4th Barnstable District
  Tim Whelan – State Representative, 1st Barnstable District

Table of Contents

1. Introduction and Statement from Cable Access (PEG) Stations

2. Over-the-Air

3. Streaming Services

4. Streaming Equipment

5. Voice Telephones

6. Examples

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1. Introduction

       Cape Cod is a unique area in Massachusetts and, for that matter, anywhere.
As much as we appreciate the throwback to earlier times, the mom-and-pop stores,
the clam shacks, kids playing on the beach, we are just as much part of the 21st
century as anyone else in this state or country.

      For residential broadband Internet services, we have but one company from
which to access the Internet at high speeds, Comcast. Verizon’s Fios service will
not be available on Cape Cod due to 1) the lack of density of homes which makes
the cost of installations much more expensive than in suburban and urban areas, 2)
Verizon’s objection to having to negotiate contracts with each of the 15 towns on
Cape Cod, and 3) Verizon’s stated company direction of moving into wireless
services and away from wired services.

      This leaves us with a virtual monopoly with respect to residential broadband
Internet services. DSL (digital subscriber line) is an alternative but the maximum
speed tops out at about 7 Mb (megabits) per second. The engineering definition of
broadband Internet is a system that provides a minimum of 25 Mb per second.

       In 2009, a group of enterprising citizens created a nonprofit corporation
called OpenCape, which applied for and received grants of $32 million from the
federal government, $5 million from the state, $1 million from Barnstable County,
and $2 million from a for-profit corporation that was tapped to sell OpenCape’s
services. With this $40 million, OpenCape built a fiber-optic mid mile network on
the Cape with connections to the World Wide Web in Providence and Boston.

       Your Cape delegation of state representatives and senators has been working
to create an affordable way for residential properties to connect to OpenCape’s
system. Up to now, OpenCape has been primarily marketing its services to
municipalities, the county, educational and research institutions, Joint Base Cape
Cod, and commercial entities. Given that $38 million of the $40 million of seed
money came from taxpayers, we believe that the same taxpayers should be able to
access this state-of-the-art broadband service.

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We have garnered significant public support for providing a competitive
service to Comcast in Barnstable County for residential high-speed Internet. We
also heard a common question among many of the people who would like to see
such an alternative; that is: “Is there any way that I can save money right now on
what I pay for Internet, television, and telephone services?”

       In fact, there are several options to saving money on your monthly
entertainment and communications bill. That is the subject of this seminar and we
hope that you are able to glean some suggestions that will put you on the road to
paying less money while keeping the services you really want and need.

       If you have any further questions, please feel free to contact Randy through
his legislative office. His aide, Matt Liber, can be reached at 617-722-2396 or at
matthew.liber@mahouse.gov.

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Your Local Public, Education, and Government Stations!
        Government transparency • Hyperlocal content • Easy access to tools and
                                    knowledge
Here in Massachusetts we have a strong local access tradition. That means your local
community negotiated with Comcast and other providers. The companies pay a portion of
revenues they generate from your town to support Government, Education and Public
content creation and also set aside channels for distributing this local content. In
exchange, the companies use taxpayer-owned rights of way and other assets to run their
respective businesses.

If you think about it, the trade makes sense – it acknowledges the value in our publicly
held assets while at the same time helping companies deliver their product to our
communities. But the biggest benefit of all is that we have local channels reflecting our
local communities!

Your local Government station (either channel 18 or 15 in most Cape communities)
brings critical transparency to local government activities. You can watch your select
board, town committees and – of course your annual meeting. Transparency in
government brings more involvement and better management for us all!

Your local Education station (either channel 22 or 14 in most Cape communities) shines
light on what happens in our schools. From school committees to school sports to “In the
Classrooms” it lets everyone see what schools are doing. It brings production tools to our
students, too - inspiring and teaching our next generation how to both create and be wise
consumers of information.

Your local Public station (either channel 99 or 13 in most Cape communities) creates a
place where the regional, local, and hyper-local thrives. If anyone in the community
dreams it, they can create it here! The public station lets everyone access state of the art
video equipment and instruction on how to use it – there’s no barriers in public access.
Plus, they deliver hyper local content you can’t find anywhere else.

On top of that, through local PEG stations people have learned skills that helped their
careers, helped their businesses, or helped them engage in the community. PEG stations
employ people and create an economic footprint. They form a vital part of the local
heartbeat. They intertwine with the local ecosystem. They help make local communities
thrive.

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2. Over-the-Air (OTA)

What is OTA?

       With the purchase of a TV antenna, consumers have the ability to receive
digital signals from their local broadcast TV stations for free. Consumers can
choose between purchasing an indoor antenna and an outdoor antenna. Indoor
antennas tend to have greater limitations in picking up signals, especially those
transmitted from faraway distances, as is the case on Cape Cod.

      The prices typically range from $20 for an indoor antenna to $100 for roof-
mount models. More expensive roof-mount models can receive fainter signals, thus
more stations. Distance from the transmitting station is the most important factor
when choosing your antenna model. OTA can be coupled with any of the
streaming services and equipment laid out in the following sections.

Available channels on the Cape include:

    ABC

    NBC

    FOX

    CBS

    PBS

    The CW

    QVC

      To choose the best antenna for you, visit www.antennaweb.org and enter
your specific address to see how far the signal would have to travel. A screenshot
(Figure 1) is shown on the next page along with a Boston OTA range map.

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Figure 1: antennaweb.org screenshot

Figure 2: Boston OTA broadcast range
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3. Streaming Services

What are streaming services?

     Streaming services are various applications that can be purchased at a
monthly rate that provide television content over your Internet connection.

ON DEMAND SERVICES

Netflix ($7.99/month, standard definition, 1 user; $10.99/month, hi-def, 2
users; $13.99/month, Ultra HD, 4 users)

    Large selection of TV shows and movies for all ages
    Original content (e.g., The Crown, House of Cards, Stranger Things,
     Narcos, Bloodline, Orange Is The New Black, Altered Carbon, Longmire)
    Commercial-free
    Variety of pricing options and plans

Amazon Prime Video (free with Amazon Prime membership, which costs $99
a year)

    Lots of movies, TV, and original content (e.g., The Marvelous Mrs. Maisel,
     Mozart In The Jungle, Sneaky Pete, The Man In The High Castle)
    Feature allows for customers to subscribe to premium channels, such as
     Starz, HBO and Showtime at their normal monthly rates (for example, HBO
     has a 7-day free trial and then costs $14.99/month; Starz has a 7-day free
     trial and then costs $8.99/month)
    30-day free trial available
    Commercial-free

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Hulu ($7.99/month w/commercials; $11.99 without commercials)

   TV content available for playback, such as Seinfeld, Fear the Walking Dead,
    The Handmaid’s Tale, and Cheers
   Includes current content from ABC, FOX, and NBC but not CBS
   Current shows added the next day after TV airing
   30-day free trial available
   Available on multiple devices
   Large children’s library available
   Multiple pricing options and plans

Showtime ($10.99/month)

   Includes shows such as The Affair, Homeland, Roy Donovan, Twin Peaks,
    and Shameless the moment they air. Also includes children’s options.
   Allows you to download full episodes and movies to your mobile devices to
    watch offline at any time
   Can be streamed through Amazon, Apple TV, Hulu, PlayStation Vue, Roku,
    Sling TV, and other streaming services
   Commercial-free
   Free 7-day trial
   Available on multiple devices (TVs, computers, phones, etc.)

HBO Now ($14.99/month)

   Free 30-day trial
   Available for streaming on Apple TV, Google Play, Amazon, or Roku
   Includes shows like Game of Thrones, Last Week Tonight with John Oliver,
    Veep, Real Time with Bill Maher, Westworld, VICE News, and various
    children’s options
   Includes movies such as The Accountant and Batman v Superman: Dawn of
    Justice

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Starz ($8.99/month)

    Free 7-day trial
    Available for streaming on Apple products, Google Play, Roku, and Amazon
    Includes shows and movies such as Ice Age: The Meltdown, Inferno,
     Madeline, Risen, Ratatouille, and many others

CBS All Access ($5.99/month with commercials; $9.99 without commercials)

    Free 7-day trial
    Includes over 8,000 episodes on demand from shows such as NCIS, Blue
     Bloods, The Big Bang Theory, CSI: Miami, and many CBS originals
    Live-TV streaming (CBS only) available 24/7 includes news and sports
    Available for streaming on Apple products, Amazon Fire, Google, Android,
     Roku, Playstation Vue, Xbox, and others

There are many other services available, ranging from free to tens of dollars per
month in subscription fees. All of these are accessible via smart televisions or
standalone streaming devices, which are covered later.

It is important to keep in mind that, depending on your viewing habits, you may
well spend less money per month by subscribing to a bundled package from
Comcast, DirecTV (satellite), or Dish (satellite), versus subscribing to multiple
streaming services. The trick to saving a significant amount of money per month
includes some analysis of what you really watch.

Combined with a basic cable television service and 10 Mb per second or faster
Internet service, any of the above on-demand services will provide most people the
television experience they want while keeping the total monthly bill below $100.
Others may want live channels, such as the Cable News Network’s, ESPN, HGTV,
and NESN. For them, live streaming offers a solution.

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LIVE STREAMING SERVICES

Hulu Live ($39.99/month)

   Includes live local channels, such as Boston channels 4 (CBS), 5 (ABC), 25
    (FOX), 10 (NBC), Sports Boston (NBC Sports), and NECN
   Currently, Hulu Live does not include NESN (New England Sports
    Network), which features live broadcasts of the Red Sox and Bruins
   Other typical cable networks are included, such as the Food Network, FX,
    HGTV, Lifetime, National Geographic, Oxygen, Smithsonian Channel,
    History Channel, Travel Channel, TNT, USA, Disney Channel, CNN, Fox
    News, MSNBC, ESPN, Golf Channel)
   Get more information at https://www.hulu.com/live-tv
   No contract monthly service

Sling TV ($20/$25/$40/month)

   Free 7-day trial
   Includes channels such as ESPN, FX, NBA TV, Fox Sports, TNT,
    FreeForm, CNN, MSNBC, many children’s options, and more depending on
    which service you choose (blue or orange)
   Note that the service does not currently include NESN (Red Sox/Bruins)
   Sling Orange: $20/month – Single stream (one TV/device at a time)
   Sling Blue: $25/month – Multi stream (up to three TVs/devices at a time)
   No contract monthly service

DirecTV Now ($35, $50, $60, $70/month)

   Free 7-day trial
   Depending on which service you choose, channels such as ABC, Bravo,
    Cartoon Network, CNBC, Discovery, DIY Network, Fox, ESPN, CNN and
    more can be accessed immediately
   Note that the service does not currently include NESN (Red Sox/Bruins)

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 HBO is $5 extra per month
   Available for streaming on Amazon, Apple, Chromecast, Roku, and most
    smartphones and tablets
   Variety of pricing plans and options
   No contract monthly service

YouTube TV ($35/month)

   Includes NESN but relies on phone/tablet or PC to send image to TV set

Playstation Vue ($40, $45, $55, $75/month)

   Free 5-day trial
   Available for streaming on AppleTV, Roku, Playstation, Amazon Fire,
    Google Chromecast, and most smartphones and tablets
   Includes channels such as CBS, ABC, FOX, NBC, CNN, ESPN, FOX
    News, FOX Sports, MSNBC, USA, Food Network, Showtime, HBO and
    many more depending on which package you choose
   Core and above includes the New England-specific network NESN (for
    Red Sox and Bruins) and the various channels that carry the Celtics
    games

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4. Streaming Equipment

What is Streaming Equipment?

      Streaming equipment are the plug-ins you use to connect your streaming
services (those described in the previous section) to your TV. These are
unnecessary if you only plan to stream your services on a smart television,
computer, smart phone, or tablet.

Some examples of streaming equipment include:

Roku

      Other Roku streaming devices range from $39.99 to $109.99, with varying
streaming speeds and picture quality.

     Roku is compatible with Playstation Vue, Netflix, Hulu, Amazon, Sling TV,
HBO, CBS All Access, and Starz.

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Apple TV

      Depending on storage preferences, the prices range from $149.00 to
$199.00.

       Apple TV has over 1,600 video apps to choose from, including Netflix,
Starz, CBS All Access, FOX News, NFL Network, The Weather Channel, Hulu,
HBO, Sling TV, Playstation Vue, and more of your favorite TV shows.

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Chromecast

      To use Chromecast, simply plug in the device to your TV’s HDMI port and
use your phone as a remote.

     Chromecast offers services such as Netflix, HBO, Hulu, Playstation Vue,
NFL Sunday Ticket, and Google’s own library of movies.

Amazon Fire TV

       Depending on your personal viewing preferences, Amazon offers three
different devices. The Fire TV Stick is the cheapest and most popular of the three,
but streaming quality increases with each device.

      You can use Amazon to watch Amazon, Hulu, Netflix, HBO, YouTube,
Sling TV, ESPN, and many others.

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5. Home Telephone Services

What phone options are accessible through an internet connection only?

      Although we advise against home phones because they are outdated and
cellphones are more efficient, there are a few services that allow you to keep your
home phone for a low monthly price.

Some examples include:

Vonage

Ooma

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Examples
                              Local Stations               Local Stations         Local Stations
                Viewer Type: Docs, Old Series              Current Series          Cable News
                                 No Ads                       No Ads              HGTV & NESN
Service:
Basic cable ($14 to $33)
Basic cable/Internet ($75)                 $75                    $75                    $75
Netflix ($11)                              $11
Hulu ($12)                                                        $12
CBS All Access ($10)                                              $10
PlayStation VUE ($45)                                                                   $45
Total                                      $86                    $97                   $120

A Note Regarding Basic Cable Pricing
Only basic cable TV service and installation fees are allowed to be price regulated per FCC
regulations. That is further limited to only communities where competitive services have less than
15% market share.
For example, if DirectTV and Dish have 20% of the total TV viewing market, then prices for basic
cable cannot be regulated. On the other hand, if the competitors have less than 15% market share,
then a town is allowed to request price regulation, which is handled through the Massachusetts
Department of Telecommunications and Cable and calculated by an FCC formula.
Here's the kick in the butt. Ten of the 15 towns in Barnstable County have regulated basic cable TV
service. Compare those rates to the "competitively" priced towns.
Monthly price in towns with regulated basic cable TV:
Barnstable - $19.51
Chatham - $19.95
Dennis - $19.87
Eastham - $16.40
Falmouth - $20.31
Harwich - $19.86
Orleans - $14.12
Provincetown - $16.71
Wellfleet - $16.36
Yarmouth - $19.80
Monthly price in towns where basic cable TV is unregulated:
Bourne - $31.80
Brewster - $28.12
Mashpee - $28.57
Sandwich - $32.81
Truro - $25.60

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