Rabbit ears are making a comeback.

After this year’s cable and satellite rate increases, the average American is now spending $550 a year on basic cable television.  With declining middle class incomes and increasing energy and health care costs busting the budget, something had to give.  Increasingly, it is cable and satellite TV.  Now consumers are combining the past with the future to find a cheaper way to watch television — over the air “free TV” with streamed online video entertainment.  Many broadcasters even offer extra channels that are made possible through digital signal compression.

Some marketers are going over the top with the renewed interest in over the air television, pitching “futuristic” television antennas at a steep price to customers who want to cut cable’s cord.  While your parents and grandparents were well-acquainted with antenna technology, today’s younger generations are not, and are overpaying for antennas you can find for a fraction of the price at Wal-Mart.

The concept of cord cutting is simple.  You can watch live sporting events and local news and network shows from over-the-air broadcasters and catch up on favorite movies and TV series streaming shows online.  The days of the snowy picture are over since the country converted to digital TV.  But in many cases, an antenna is essential to getting the best reception.

Satellite and cable companies are trying to compete, offering discounts and, in some cases, pared down packages.  But prices will need to come down further: the average video streamer and over-the-air viewer pays $180 a year on average for a premium streaming package from Netflix, Hulu or other online viewing option.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KIMT Mason City IA TV Antenna Making a Comeback 2-21-12.mp4[/flv]

KIMT in Mason City, Iowa explores the growing interest in the old-fashioned TV antenna.  (3 minutes)

Watch these shows online, if you want to risk some uninvited guests.

There is nothing new about news outlets promoting tips and tricks to lower your monthly cable bill.  We publish similar stories ourselves here on Stop the Cap!  But some newspapers take things further, openly advocating you disconnect your cable service for good and watch everything online.  This week, we found one even willing to publish website addresses that skirt copyright laws and take online video underground.

The State Press encourages Arizona State students to thumb their noses at Cox Communications’ latest offer — cable television for $29.99 a month, good for six months (regular price $70).  Instead, they encourage, take your viewing online to Netflix and Hulu — the former for movies, the latter for television series.  But with cable companies and Hollywood studios conspiring to tackle the growing problem of cord-cutting, new restrictions are finding their way to fans of both websites, including waiting periods, limited series runs, and higher subscription fees.  This means war to the State Press:

There is a dark side to these two corporate entities, however. In their attempt to slowly weasel their way into your pockets a bit more, Hulu has gone Plus and Netflix has divided their packages, limiting your viewing. Hulu has seemingly said, “You can pay a little more to watch it the day after, right? No? Well, then I guess you’re waiting five more days for that recent episode,” while Netflix has exclaimed, “Unlimited to our choosing! You’re going to have to pay up if you want every movie out there.” So we must retaliate and go a little dark ourselves.

The author advises readers there is a way around the roadblocks — visiting a website already shut down once by copyright enforcement action (but has since resurfaced with a Chinese web address), providing a list of links to other websites that host copyright-infringing videos you can’t watch on Hulu or Netflix.

While the author of the State Press story may not realize it, a brief test visit to the “pirate-streamed site” opened the door to some nefarious extras.  With the help of Malwarebytes’ Anti-Malware, we stopped unwanted browser toolbars, various intrusion attempts, and even a few pieces of actual malware that wanted in on the party.  Without the most robust security software, visits to websites with underground video content can wreak havoc, and there are not that many TV shows worth watching to make that headache worthwhile.

The website owner disclaims responsibility from just about everything:

“[This website] does not host, provide, archive, store, or distribute media of any kind, and acts merely as an index (or directory) of media posted by other webmasters on the internet, which is completely outside of our control. Whereas we do not filter such references, we cannot and do not attempt to control, censor, or block any indexed material that may be considered offensive, abusive, libellous, obnoxious, inaccurate, deceptive, unlawful or otherwise distressing neither do we accept responsibility for this content or the consequences of such content being made available.”

We encourage you to exercise caution visiting websites that are willing to skirt copyright laws.  Up-to-date antivirus and spyware detection software when visiting is a must at all times.  Many of these sites stay in business selling ad space to anyone, and those ads can come with unwanted malware that can find its way onto your computer long after the viewing is over.  Be careful.

Tiny Ringgold Telephone, which serves 122 square miles of northwestern Georgia, has pulled the plug on the company’s own video IPTV package and is encouraging customers to watch all of their television shows online or through a satellite TV package offered by DISH Network.

Ringgold was in the IPTV business long before AT&T began offering U-verse, having launched video over phone lines back in 2003.  The phone company invested heavily in producing local programming for their customers, including local sports, issues in the news, health and fitness, and educational shows for and about the region.  The hope was that the phone company would give cable subscribers enough reasons to cut the cable cord for good.  They’ve invested heavily to remain on the cutting edge, something uncommon for traditional wireline phone companies.

In 2000, Ringgold announced they would deliver a High Speed Internet connection to every single customer who wanted it throughout their entire service area.  The company has continuously upgraded their facilities, offering traditional copper wire customers bonded DSL service up to 25Mbps and their growing number of fiber customers speeds up to 50/50Mbps.  That’s an enormous difference over other nearby providers, including AT&T, Frontier Communications, and CenturyLink which deliver customers 1-3Mbps DSL with no fiber in sight.  The other alternative is service from Charter Cable, among the worst-rated cable companies in the country.

But that level of innovation isn’t unusual for Ringgold, which has outpaced traditional Bell System phone companies since it was first founded in 1912 with just eight telephone lines.

In 1950, Ringgold was among the first independent companies in Georgia to switch from manual to dial telephones.  By the 1990s, Ringgold realized the future was in fiber optics, and planned to replace a significant amount of copper wiring that had been on phone poles for decades.  The phone company thought it had mastered the ultimate triple-play fiber-optics package of voice, broadband, and television, until their small size got in the way.

Ringgold discovered that “bigger is better” in the pay television business.  The largest cable operators enjoy the best bargaining power for just about everything.  Companies like Comcast and Time Warner Cable can use their enormous customer base to negotiate cut rate pricing on programming and equipment and stand-up to greedy programmers that demand excessive payments for programming.  Ringgold discovered they can’t.

Light Reading highlighted the challenges Phil Erli, executive vice president of Ringgold, spoke about recently:

• Ringgold could not cut a deal with equipment vendors that would deliver DVR and HD functionality at a level above that of the local cable company.  Large set top box manufacturers deal in volume, and smaller players like Ringgold are often left with inferior technology at prices higher than large cable companies pay for the most advanced equipment available.  Erli tried to innovate a new approach using Microsoft’s Mediaroom, but discovered that required a large number of servers too costly for a small phone company to consider;
• Programming costs were completely out of line.  Volume discounting delivers enormous savings, if you are a large-sized national provider.  Large cable companies pay a fraction of the prices independent providers pay for programming, and local broadcast stations held the company hostage on retransmission consent agreements.  Erli noted the local NBC station, presumably in nearby Chattanooga, demanded an incredible $5.25 a month per subscriber.  That rate was so high, it would turn the company’s video venture unprofitable.  Even worse, Erli relates, “these weren’t negotiations, they told me what we would pay.”  Erli realized that just one programmer could make or break Ringgold’s video service profits;
• The company’s video lineup, due to wholesale costs, was inferior to that offered by the local cable company.

Ringgold's broadband network is superior to anything the competition offers in northwestern Georgia.

With these challenges, the phone company decided enough was enough and dropped its video package, redirecting customers to DISH Network for satellite-TV, and more recently to online Internet video as an alternative to pay television.

Something you won't likely see from your cable company.

While most broadband providers treat online video as a parasite, Ringgold sees it as the ultimate business opportunity to reinvent themselves through their broadband service — selling super high speed access to content that someone else provides and has to worry about.

They’re considering a new customer promotion that includes a Roku, Apple TV, or Clearleap-powered set-top box to integrate broadband connections with television sets.  The company is even educating customers about the growing number of programs available for free (or with a low cost subscription) online with an interactive web tool.

Ringgold’s new solution for online video also includes some small revenge on high programming costs, giving subscribers an integrated over-the-air antenna system that can pick up nearly a dozen HD channels, including that NBC station, for free.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Internet TV.flv[/flv]

Here is something you don’t see every day: Ringgold Telephone encourages its customers to get online and watch TV shows for free.  (1 minute)

MediaMall this week introduced PlayLater, a new software DVR for online video, allowing users to record online streamed content from Hulu, Netflix, or from almost any other website, storing unlimited content on your personal computer for later viewing.

PlayLater is being marketed as a companion to the company’s first product — PlayOn, which streams virtually any video format to television sets and portable devices like smartphones and tablet computers.

MediaMall’s products directly target pay television “cord-cutters.”  By serving up unlimited video content from web video providers — recorded or live — to television sets and portable devices, there may be more than enough to watch without paying for hundreds of cable networks you don’t care about.

PlayLater works easiest with its built-in online program guide, listing programming from the various “channels” the service supports.  Already “built-in” is listings for online content from Hulu, Netflix, Amazon’s Video On Demand, Pandora, YouTube, CNN, Fox News, TNT, and at least a dozen other networks.  Third party “plug-ins” extend the number of “channels” to other video content websites.

Viewers simply find the show or shows they want to record through the guide and press the “record” button to begin the capturing process.  Shows are quietly recorded in the background, and small pop-ups alert you when various recordings are completed.  The resulting files, recorded in a secure DRM Windows Media format, reside on your hard drive for later viewing.  You can record as much as your hard drive can accommodate, and beta testers quickly found they often amassed hundreds of recordings over a month — providing more content that most cable DVRs can handle.

When combined with MediaMall’s PlayOn, PlayLater viewers can take the show on the road, watching their stored shows over a television set in the next room or in another state, remotely streamed over your broadband connection.  You can also watch on Android or iPhone smartphones, or on tablet computers like Apple’s iPad.

MediaMall products come with a 14-day free trial, but after that you have to pay to keep watching.  The company intends to sell the packaged suite of PlayOn and PlayLater for $7.99 a month, or $69.99 per year.

Stop the Cap! has been using PlayOn at our headquarters for a few months now, and we’ve been very impressed with the results.  PlayOn effectively streams virtually any video file format we throw at it over to our Roku box.  It has largely replaced our first generation Apple TV running Boxee software, which has gotten progressively more troublesome with age.  The picture quality over our wireless N network has been excellent, and the accompanying Android app has also worked well streaming shows over Verizon Wireless’ 4G LTE network or Wi-Fi.  With Time Warner Cable’s 30/5Mbps DOCSIS 3 broadband service, PlayOn’s picture quality remains excellent even when streamed to remote televisions.

PlayLater is an interesting concept, but we’re not as impressed with MediaMall’s newest endeavor, for these reasons:

Android Phone PlayOn Media Player

MediaMall has no official partnerships with any of the content producers supported by the product.  After covering other product innovations that offer consumers increased viewing convenience, we’re certain content producers will adopt the same hostile response to PlayLater they have with other recording software that allows viewers to store a digital copy on their home computer.  That response could come in lawsuits or through technical adjustments to try and block access to PlayLater.  The company says the legality of their software DVR should not be an issue, considering consumers can already record shows on cable company DVRs and home video recording units.  The biggest “risk” for MediaMall is the fact it allows users to record and save shows from services like Hulu, even after their “online viewing window” expires (typically after a month).  You could theoretically build a season-long collection of shows with PlayLater, a concept that violates Hulu’s terms and conditions.

While the concept of a DVR for online viewing allows for convenient time-shifting, most of the shows available to record are already available “on-demand.”  It makes little sense to record a show you can launch and watch anytime you want.  MediaMall says their product will appeal most to travelers who find themselves without an Internet connection, either because they are flying, driving, or visiting relatives without Internet access.  In these cases, watching pre-recorded shows may make sense. We think the concept of automatically recording shows from live video streams (or from Slingbox, cable or satellite TV) would be more helpful.  Those of us who would like to keep cable but dispense with overpriced DVR rental fees would thank you.

The PlayLater application currently works only on Windows-based computers.  A Mac version is reportedly in development.

Remote viewing requires the PlayOn companion application, which means leaving two software programs running continuously.

Recordings are DRM-protected and technically rely on a “screen-recording” approach, albeit one that takes place in the background.  Recordings occur in real time, and the video quality suffers slightly from the transcoding between the original media format and the DRM-protected video file eventually produced and saved on your computer.  Tests showed some occasional screen glitches when busy websites suffered from traffic congestion.  We also found very slight audio sync problems from time to time, but were barely noticeable.

You can’t currently move the video files and watch them on another computer or device — they either have to be watched on the original computer, or streamed with PlayOn to another device.

The package may be too expensive for some viewers’ tastes.  Without PlayOn, PlayLater sells for $4.99 a month or $49.99 a year, but that ties your viewing options down.

Overall, PlayLater will probably be most attractive to those who find themselves uncomfortably without their Internet connection and looking for something to watch.  If you install the software on a portable laptop (left on to handle recordings), watching on the computer itself may prove to be the most convenient way to watch.  But we’re not impressed with the restrictive DRM making it impossible to simply transfer recordings between devices without streaming, and the concept of recording on-demand programming that can be watched whenever one wants anyway is not going to convince a number of people to pay $50 a year for the software.  PlayOn has proved far more useful to us than PlayLater probably ever will.  But one benefit we did appreciate with PlayLater — the ability to easily skip the increasing commercial load found on Hulu.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/PlayLater.flv[/flv]

An introduction to PlayLater.  (1 minute)

Fox has turned off instant access to its network shows effective this afternoon for all but “authenticated” pay television customers.  But with only one partnered provider thus far — Dish Network — that leaves millions on an eight day waiting list.

Fox Network programming on its own website and Hulu is impacted by the new embargo, which means the vast majority will have to wait at least a week for access to new episodes.  Customers paying for Hulu + are not affected by the delay, and the network promises forthcoming partnerships with other cable and satellite providers shortly.

Fox says it’s all a part of “retransmission consent” agreements with pay providers.  Major cable operators don’t want to pay for Fox affiliates and cable networks if the network is willing to give away free access to programs online.  In return for blocking access to “cord-cutters,” cable companies hope to stop consumers from switching off cable television packages.

Viewers who try and access shows are brought to a new authentication page to “unlock” access to programming.  If they can’t because their provider isn’t listed, they can fill out an online form requesting their provider participate in the TV Everywhere project.

Most Fox viewers probably will not encounter the new FoxBlock until late fall.  That’s when new seasons of Glee, House, and The Simpsons get started.