Satellite TV vs. Digital Cable by adger

These days, relaxing can be a lot of work. Casual channel surfers risk being engulfed in a 250-channel television flood. Two technologies, digital cable TV and satellite TV, offer consumers a wide array of choices when it comes to home entertainment. Both offer a sharper picture and better sound than traditional cable, as well as dozens more channels of TV, movies, and music. But choosing between them can be difficult, especially because the two systems each have their drawbacks. Fierce competition for customers has resulted in a marketplace full of confusing and sometimes misleading rumors, as well as pricing policies that can make predicting your cable bill as complicated as doing your taxes. We'll explain what's behind digital cable and satellite TV and mention benefits and drawbacks of both, so you can decide which system is best for you.

If you already have analog cable TV, digital cable might not sound like a huge change. In some ways, it's not. Digital cable signals come over the same wire that the analog signals do, so if you already have analog cable, you won't need to change any wiring in your house. However, for most TVs, digital cable requires a special set-top box for each television to decode the digital signals. Usually, your cable service includes set-top box rental for one TV, but outfitting additional TVs will cost extra. For example, Comcast (www.comcast.com) charges, on average, $5 monthly for each extra system. However, if you are pinching pennies, you don't have to get a box for each TV in your house. You can get digital service in the living room and still get your analog basic cable channels on other televisions. Then the company charges you for digital cable service on only that one TV.

Digital cable's main competition comes from satellite television services that broadcast similar digital programming. Just a few years ago, getting satellite meant putting a huge metal dish, sometimes up to eight feet in diameter, in your backyard. However, you no longer need to make your house look like a NASA research center to watch TV. The new generation of satellite dishes are much smaller, about 20 inches across, and you can mount them on a windowsill or the edge of a roof. With satellite service, you need to run a wire from the dish to each of your televisions, and like digital cable, satellite systems require you to rent a set-top digital tuner for each television on which you want to watch different channels.

The digital service that cable and satellite can deliver provides a slightly sharper picture than analog and usually gets you dozens of new channels, including dedicated music channels. But digital cable provides additional benefits over satellite, based on the fact that cable is actually a two-way connection, so you can use your set-top box to transmit programming requests back to the cable company. Char Beales, president and CEO of CTAM (Cable & Telecommunications Association for Marketing; www.ctam.com), emphasizes that, "The fact that cable is a two-way connection allows it to provide interactive services that satellite just can't."

One of these features is On Demand, in which you select the TV program or movie you want to watch from an on-screen menu using your remote and have it immediately broadcast directly to your TV, often for no additional fee, depending on the type of program you choose. Some movies cost similar to what you pay to rent a movie. The system is interactive and lets you pause, rewind, or fast-forward what you are watching as the cable company broadcasts the show to your TV. It usually also gives you access to programs on premium channels, such as HBO or Cinemax, to which you subscribe. Com-cast claims to have over 3,000 programs available on demand, with 95% of those for no additional charge, but other cable operators such as Cox (www.cox.com) and Time Warner Cable (www.timewarnercable.com) offer a selection that consists mostly of pay-per-view movies and sports.

All digital systems offer at least dozens and dozens of channels, but strangely, your favorite channel might not be included. What good are all those extra channels if they are of professional wrestling and not A&E? With satellite service, also pay special attention to what local programming is available, in case your provider doesn't offer local news channels or sports networks that you prefer to watch. In some areas you may have to install a second dish to pick up the additional channels from your provider's other satellites; in other areas your only option might be to install an off-air antenna to pick up broadcast signals. If you use an off-air antenna, you won't enjoy the clear digital picture from the satellite service; rather, you'll relive your memories of life before cable, assembling an antenna to receive that fuzzy picture. With either cable or satellite service, you'll likely need to make a few changes to your house to accommodate the cable connection or satellite dish. If you need cable installed, the company may have to dig in your yard to run a wire to the house and then snake it through your walls or under baseboards to your TVs.

If you're considering satellite, think of where you could put the dish. Satellite providers' Web sites, such as DirecTV's, provide information to help you predict what direction and angle you'll need to point the dish, based on your ZIP code. The dish needs a direct view of the satellite, unblocked by trees or buildings, and should be within 100 feet of your TV if you don't want to install a signal booster. You might also need to make a few adjustments in your home based on how many TVs you want service for and how much space you have to store equipment. With cable you could easily have one digital system with a DVR, one digital system without, and one analog system. Think about your viewing habits and plan accordingly. If your TVs are hidden away in cabinets or alcoves, make sure you have room to put a set-top box in there, and if you have a stylish, wall-mounted TV, ensure you have a nearby location for the set-top box, as well. Cable and satellite companies are locked in a fierce battle for subscribers, but the perks they offer often take different forms. Many satellite companies provide and install basic equipment for free, as long as you're willing to make a year-long service commitment. Cable companies, however, usually charge a fee for installation, but they are more likely to provide free premium channels for the first few months of use or discounts if you subscribe to their other services, such as Internet or digital phone service. Find a deal that looks attractive and then have a customer service representative walk you through all of the costs for the equipment, installation, and monthly service before you commit. Use these prices when considering which service costs more because they'll give you a much more accurate picture of what you'll spend than the advertised rates.

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