Satellite TV vs. Digital Cable

Satellite TV providers send a signal from a ground center to multiple satellites orbiting the Earth, allowing anyone with a satellite dish and the proper set-top receiver to view their programming. Satellite TV providers protect their networks by encrypting and encoding their signals and controlling the types of devices that can play back the signals to discourage theft, explains Ed Tittel of Digital Landing. Digital cable is available only in areas where its providers are located. A digital cable package requires a set-top box, which the cable company will provide, along with audio and video cables and a remote control. These set-top devices must be authorized by the cable company before use and are closely monitored to prevent theft.

Satellite TV package costs vary by provider, with basic packages beginning as low as $20 per month and premium packages extending to more than $100 per month, and generally require a 12-to-24-month contract. Other televisions in your home will require receivers leased at an additional cost. Digital cable costs vary by provider and location, with prices ranging from approximately $10 per month for basic packages to $120 per month for premium packages. A monthly rental fee is usually charged for set-top boxes and additional rooms. For both satellite and digital cable, services such as HDTV, DVR and premium channels typically cost extra.

Installation and activation is usually free for satellite TV and includes the satellite system, set-top receiver and remote control. Digital cable installation costs usually range from $20 to $40 and include a set-top cable box, cables and a remote control. Upon service cancellation, both satellite TV and digital cable providers require consumers to return leased equipment, which includes satellite systems, set-top receivers or cable boxes, DVRs and remote controls. You may return this equipment to the company yourself or request a service call to have it removed, which you may be charged for.

Both satellite TV and digital cable providers offer a variety of bonus features. Satellite TV providers offer channel packages to accommodate the consumer's preferences, including pay-per-view broadcasts of movies, concerts and sporting events, as well as HDTV and DVR services. Satellite TV providers partner with separate companies to provide high-speed Internet and phone service that can be "bundled" into the satellite package at a discounted rate. Cable companies offer similar channel packages, pay-per-view and on-demand options, HDTV and DVR availability. Some cable companies also offer digital phone and high-speed Internet services, which may be similarly bundled into the cable package at discounted rates.

Satellite dishes must be able to "see" the provider's satellite in orbit. Satellite signals can be disrupted by heavy precipitation and high winds that move obstacles, such as trees, into the satellite dish's line of sight. Most disruptions are occasional and temporary, but they can be minimized by properly securing your satellite dish in an area with the clearest line of sight possible. While outages may occur as a result of downed or damaged cable lines, digital cable reception is not typically affected by obstacles or severe weather.