I receive an email each day from the Wall Street Journal that covers stories and news related to the media & publishing industry. One topic that is covered on a near-daily basis is cord-cutting and how new media is slowly killing traditional cable offerings.
One product that disrupted cable early on was Roku. Roku is a relatively affordable piece of hardware and software that makes it very easy to stream content over your TV.
Today I want to tackle this question: is Roku the key to cutting cable forever?
Cable is still extremely popular in the United States with millions upon millions of households subscribing. It’s also one of the most hated monthly expenses of Americans. After all, why should you have to pay for 100 channels when you really just want 10?
Roku is one company that has positioned itself to benefit from the demand for cable alternatives. But what exactly does Roku do and how can it benefit cord-cutters? Read on to find out.
What Roku is – and isn’t
One common misconception people have about Roku is that you can get a whole bunch of free cable channels – without having to pay for cable. This simply isn’t true. Disappointing, I know, but it’s an important thing to understand from the get-go.
If I had to describe Roku in one sentence it would be this: Roku is a piece of hardware/software that allows you to easily stream from thousands of available apps or “channels.” These apps and channels include companies like Netflix, Hulu, Crackle, and HBO Go.
There are some apps that are virtually useless unless you have a paid cable subscription, such as Watch ESPN, History, and Fox Now. You are required to authenticate your cable subscription before you can access TV shows or live content.
The Roku user interface and quality of streaming is the big reason it may be worth it to shell out $99 for the Roku 3 or $47 for a Roku Streaming Stick. Regardless of which Roku you choose, you can search for specific movies and TV shows across multiple apps to see your streaming options. What may cost $2 on Amazon Prime may be free on your Hulu Plus account, for example.
Getting the most out of Roku
Now that we’ve established Roku isn’t a magical piece of hardware that will allow you to stream cable channels for free, let’s talk about how you can get the most value out of cutting cable and utilizing a Roku instead.
Get an HDTV antenna – If you are committed to cutting cable forever you will want to make sure you have a high-powered HDTV antenna. This HDTV antenna from Amazon is only $29.99 and has a 50-mile range and is a very small piece of hardware, nothing like you would imagine when you hear the word “antenna.”
An HD antenna is important because it allows you to have crystal-clear access to all the “free” channels such as Fox, NBC, CBS, etc. Having access to those channels free of charge will go a long way in your transition to a cord-cutter.
Purchase a Roku
Like most companies, Roku comes out with new products every year or so. The most recent Roku is the Roku 3 which is available for approximately $99. One thing you may find interesting is that the Roku Streaming Stick costs approximately $47 and, as far as a I can tell, has all the features of a Roku 3.
In fact I would argue that the Roku Streaming Stick is preferable to the Roku 3 because it doesn’t come with all the cords that the Roku 3 comes with. You simply plug it into an HDMI port and you are good to go.
Use Paid Apps & Channels
Yes, the whole point of cutting cable was to avoid the monthly fees that came with it. So why am I suggesting that you purchase paid apps? For one they are much cheaper. As you can see in the below list, the cost of these subscriptions are far less than the cost of cable. They also don’t come with the BS charges that cable comes with such as monthly hardware fees, random price increases, and the fact that you get punished if you aren’t a new customer.
The three apps below certainly aren’t the only ones you can utilize on the Roku, but they are ones that I’ve used and recommend. I
- Netflix ($7.99/month) – Netflix is probably the most well-known streaming service out there with a huge selection of TV shows, movies, and documentaries. Don’t forget about some of their hit original shows like House of Cards and Orange is the New Black.
One thing I liked about their TV show selection is that for many shows, such as Mad Men, they have all the previous seasons available. Compared to Hulu Plus, though, they tend to lack in new episodes or current seasons.
Netflix offers a 1-month free trial.
- Hulu Plus ($7.99/month) – I primarily watch TV shows instead of movies, so one thing I really like about Hulu Plus is that they have many of the shows I like to watch: Community, Modern Family, Parenthood, Parks and Recreation, Family Guy, and more. I also like how they have many current and new TV shows available. For many shows they have the most recent season or episodes available, which is definitely a plus because one of the biggest benefits of cable is being able to DVR new episodes.
Hulu Plus offers a 2-week free trial.
- Amazon Prime ($99/year) – I initially subscribed to Amazon Prime because of their free 2-day shipping. Having access to their 40,000+ movies and TV episodes (check them out here) was an added bonus. Don’t forget about the 1 million-plus songs you get as part of your subscription.
Amazon Prime offers a 1-month free trial.
These apps aren’t necessary for gaining the full benefits of Roku, but I think it’s smart to subscribe to at least one of these three to have a large library of media. Again, the costs pale in comparison to what cable charges and let’s face it: the future is in streaming. These apps allow you to be plugged into some of the best streaming content out there.
Is Roku the key to cutting cable?
While Roku may not have the channels necessary to stream your favorite college football team, it has set up a framework for cable cutters to take advantage of. I also expect the number of ‘a la carte’ options to increase over time. After all, HBO has already moved that direction.
It’s only a matter of time before there are all sorts of streaming options that will take down the cable monopoly. And those options will all be available on Roku.
If you purchase an HDTV antenna for free channels plus a Roku Streaming Stick you will be well on your way to cutting cable forever.
Have you already or do you want to cut cable forever? What do you think about the Roku as a hardware/software option for cutting cable forever?
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Photo by Christopher A. Dominic
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We hake a Roku and we’ve actually never had cable, so it works pretty well for us. We’re not sports fans though, so we don’t have the issue of needing to track down games to watch. For us, it has been a relatively cheap way to watch shows and, since we’ve never had cable, I guess you could say we don’t know what we’re missing :).
We have a Roku and it works great. We don’t watch a lot of TV but paying $7.99 per month for Netflix gives us enough to choose from when we get in the mood. It’s definitely great for kid’s shows. They can choose what they want and start/stop as they please.
We use apple tv to stream netflix, amazon prime, and hulu. Works for me :)
I’ve never had cable TV…just Netflix and the Mohu antenna. Although the antenna sometimes gets some static. I might have to extend it closer to the window or something. Sometimes when I miss a show, they’re often on the network’s website (though you have to wait a week for the new episodes)
We just recently switched to a Roku a few months back, and we couldn’t be happier. Streaming is all we need! We aren’t fixated on needing to watch shows in real time. It’s definitely been able to cut down the cable expense by only needing internet (versus a huge expense of a bundle package). One of the features we really enjoy too is being able to “mirror” phone screens to project on our TV. If there is something that we can stream from the internet that isn’t offered through the subscriptions we have (like Netflix), then we can look it up online and still watch!
We’ve been thinking about switching to a Roku, and we really should just pull the trigger on it! We are able to stream with both Netflix and Amazon Prime so there’s really no reason why we shouldn’t jump on this already!
I’m a big fan of streaming! But I do wish there was an easier way to watch football games :) Maybe ESPN will go a la carte in the future?
Pretty big fan of Roku myself, we bought the Roku 2 about year and half ago, works great. We do currently have Comcast which does 10 basic channels and gives you HBO Go along with it as part of our internet package, I think it’s called Blast. We also subscribe to Netflix, so with all of that it’s more than we need. In the future I will probably buy the antenna and go internet only, but for some reason it didn’t make a difference in the price for the first 2 years, so I went with it. I’m really hoping Google Fiber comes to Chicago, just waiting it out;)
Mrs. Frugalwoods You have an interesting perspective because you’ve never had cable nor are you sports fans. I honestly think sports is what is keeping cable alive at this point. If it wasn’t for sports I think a lot of people would cancel cable.
brokeandbeau Nice! The trifecta! I haven’t tested out Apple TV but I imagine it’s pretty similar to Roku. I love Roku’s user interface so I doubt I will end up switching to different streaming software.
Andrew LivingRichCheaply The only negative to using a network’s website (for me) is that I like to go on my laptop while watching TV. With that being said, there was one show I used to go to the network’s website to watch because I was busy when the show was on live.
lyssawindell Oh good point about streaming from your phone screen. Granted I had a friend do that recently with their Chromecast and the quality was so bad we had to turn it off and watch on their laptop. I’m glad you’ve been enjoying the Roku!
Christina@EmbracingSimple I would definitely recommending Roku (obviously haha). I like that it’s a low risk investment. You aren’t signing up to pay $50 a month every month; instead you are signing up to pay $50 one time. Worst case scenario it doesn’t work out and you sell it on eBay a few months down the road (though I haven’t heard of anyone disliking Roku).
believeinabudget Me too. I really hope ESPN goes a la carte down the road. Who knows, though, maybe they’ll charge an arm and a leg to get their “a la carte” package haha.
EvenStevenMoney Gotta love all the innovations in the market right now. I think the antenna + internet will be all anyone needs in the future. I don’t see why cable channels won’t be streamed 100% down the road.
My love for the NBA and NFL has kept me on the cable bandwagon. I assume that they will introduce a la carte options at some point since that is where things are trending. Since sports is mainly what I watch on TV and the wife just watches netflix, I await that day eagerly!
This is my exact setup and I’ve never been happier. And better yet someone just gave me their old roku box which works great. And now HBO will have a streaming service, which I think doesn’t work with roku yet, but you can watch on your apple device. I’m waiting until all of true detective season two episodes are up, then binge watch on their one month free trial.
I’m patiently waiting for one of these alternatives to give us an option that includes NBA TV, Espn, NFL Channel, MLB TV, TNT and the travel channel. Is that too much to ask for?
We use a similar setup at our house, but instead of Roku we’ve got the FireTV Stick and Chromecast. We use those streaming devices along with our Tablo over-the-air DVR that allows us to record over the air tv shows, movies, etc. We just have the antenna hooked up to the DVR and then we can watch live tv on any of our tablets, phones or TVs with a streaming device. We use all that in conjunction with Netflix, Amazon Prime and for some content Sling TV. The options for cutting the cord are pretty endless these days – only the sports part of it seems to be lagging.
I’ve always had basic cable (only because it keeps my internet price down. Otherwise I’d be paying more for internet than both combined) and had Amazon Prime. I would watch TV on my laptop either with Amazon prime, or just watching for free on the network’s website. I was used to watching on my laptop since I did it the whole time I was in Iraq. When I realized how affordable a Roku is, I got one and wow, what a difference! I wish I’d have purchased one sooner! It’s just a lot more comfortable watching on my TV and actually using my TV! With Netflix and Amazon Prime, I’m set! I love it!
thebrokeprof Same here, actually. I do still have cable and the only real reason I do is because of sports. I hope they offer a “sports only” streaming package sometime in the near future.
Beachbudget I’m 99.9% sure the HBO streaming service works on the Roku. I don’t have HBO but I know they have an app on Roku and I can’t imagine it woudn’t be compatible??
Jason @ The Butler Journal Haha yes Jason, that’s too much to ask for! I’m curious how it will all work out in the future. I’m sure there will be some giant sports package, but I hope you can pick and choose a smaller one. I want a few specialty channels like Big Ten Network and Fox Sports North which I’m sure would be left off anything but the highest priced plan.
moneymatters Holy cow you seem to have just about everything other than cable! And you’re right: sports are the only thing keeping cable alive.
SimplySave We have cable for the same reason: it just wasn’t that much more to have cable with our internet than to have just internet. With that being said, I would love to cut the cord once some sport channels move to streaming. I agree: the Roku is so cheap!
We purchased a Blu Ray player that’s wifi-enabled, and have all the heavy-hitter apps built in (Netflix, Hulu Plus, Amazon, Youtube, etc.). For us, since we were wanting to rent the occasional Redbox, it seemed smarter than buying a second piece of hardware that (and maybe I’m missing something) does basically the same thing.
Just recently cut the DirecTV subscription, too. :) Looking forward to a little recurring cost savings.
DonebyForty That’s nice the Blu Ray player has apps right on it. It does sound like you picked something that works well, and no it doesn’t sound like you’ll need a Roku.
I haven’t cut cable yet but I’m planning on cutting it as soon as a sports “a la carte” package comes out.
We currently use Chromecast but have been thinking about switching to Roku soon. My goal is to live without cable for as long as we can, but also keep costs down. We have memberships with Amazon Prime, Netflix and more recently Hulu and I just want to ensure that we’re keeping our costs low because if you subscribe to every streaming service available, you could very well be paying the amount of a basic cable package any way.
Chonce That’s my one complaint about people who profess a hatred towards cable but then purchase every streaming service out there. I mean, I hate the games cable companies play as much as the next person but even if everything went to “a la carte” through a variety of streaming options you could easily pay the same – or more – than basic cable.
I’m having the hardest time deciding between the Roku and Amazon’s Fire Stick. Amazon went and beefed up the specs, but I’m wondering how important that is for streaming. I’m also worried about pulling the trigger and the Roku Stick 2 might come out any second. It’s been well over a year since the Roku Stick came out, right?
dalydose I feel like the newer versions of Roku aren’t significantly better than the old ones. i have a Roku 2 and I don’t think the Roku 3 or the Roku stick are significantly better. I wouldn’t worry too much about the next generation coming out.
Great article! For those who are interested in getting a Roku or other streaming device but feel you would miss sports or certain channels check out Sling TV. For $20 a month you get live channels like the History Channel, Disney, AMC and many more plus the ESPNs. Not only that but if you make a couple month commitment you can choose to get a free Roku streaming stick or about half off some other options.
Here’s there site: https://www.sling.com/
We have a Roku in just one room of our house and that’s all we watch. Even though we have cable, we never use it. Now, we’re seriously considering buying another Roku and cutting our cable. This is without having anything but the device and a Netflix and amazon subscription.
My wife and I are actually FINALLY cutting cable this month! I have a plan for replacing it at a much lower cost and I am planning on footing the bill for Sling TV. Still a lot cheaper.