Best Satellite TV Based on In-Depth Reviews

How Satellite TV Works

Unlike cable television, satellite TV doesn’t use coaxial cables to deliver television programming directly to the consumer’s home. Instead, it works via a series of devices interacting in concert to transmit radio frequencies from a programming source to satellites orbiting the Earth 22,236 miles above the equator, then to customers’ satellite dishes and, ultimately, to their television screen(s). The only connection supported by a cable is that of the dish to the receiver.

Satellite TV service depends on five major components:

1. A programming source, which are the channels or television programming whose rights for distribution a satellite TV provider pays for in order to broadcast.

2. A broadcasting center, where satellite dishes as large as 30-40 feet in diameter receive signals from programming sources. The dishes are then pointed to a satellite in the Earth’s atmosphere and beam signals within a specific frequency range.

3. A satellite, located in the thermosphere, placed in geostationary orbit (approx. 23,000 mi). Aboard the satellite are transponders, devices that emit a signal upon receiving a different one. The transponder translates the frequency into another and transmits it back down to Earth.

4. A disk-shaped parabolic antenna, commonly known as a satellite dish, which captures the radio waves sent from the satellite in space. Dishes also come equipped with a low noise block downconverter, often referred to simply as a low noise “blocker” or “converter”. These converters take the radio waves collected by the dish, amplify them, and convert them to a signal that is sent to the receiver through a cable.

5. A receiver, or set-top box, which is connected to a satellite dish and low noise blocker. Set-top boxes extract signals from the radio waves collected by the dish and converts them to what we see on our television screens: video.

What’s Included with Satellite TV?

What you pay for when purchasing a satellite TV package can be split into two groups. The first is the services provided by the satellite TV company, namely their customer support and the network or channels included in your package. The second is the equipment, which is leased to the customer and includes a set-top box, satellite dish, and low noise blocker. The monthly lease is included in the advertised rates seen online.

The number and types of channels in a satellite TV package can vary widely depending on the price and intended audience. More expensive plans feature numerous channels and often include niche programming. They may also include premium networks like HBO and Showtime—which are normally quite expensive on their own.

Customers don’t really get a say on the type of equipment a provider installs in their home. Satellite TV companies upgrade their equipment every so often, and will install whatever gear is the most current in their line. There is one piece of equipment that customers can choose for themselves, though: digital video recorders (DVR).

DVRs double as receivers (i.e. set-top boxes) and have a host of features that regular receivers lack. However, they may require an additional lease on top of a company’s advertised rates. The choice of whether to get a DVR or not will depend on a consumer’s watching habits and their recording needs.

Why Satellite TV?

If you live in an area where your access to terrestrial or cable TV is limited—or simply non-existent—then satellite TV is the natural solution to that problem. Because of how satellite works, providers in the U.S. are able to offer their services nationwide. That means even consumers in the most rural of areas, where cable companies cannot or may not want to expand into, have a way of enjoying TV programming. And unless weather conditions are exceptionally bad, satellite TV service should remain mostly uninterrupted.

For those that live on the road, or on water, satellite is the only alternative to traditional TV service. Fortunately, both major satellite TV providers in the U.S. offer methods for tuning in to their programming while outdoors. 

But how about people living in areas with access to cable? For those in that situation who are considering changing their provider, there are several reasons why they might also want to consider satellite TV service.

Cable vs Satellite: What Works Best (for You)?

The question of whether to get satellite or cable TV will ultimately boil down to two factors:

1. Where do you live?

2. How much are you willing to spend on residential TV service?

Satellite TV is available nearly everywhere because of how it works. The availability of Cable TV, on the other hand, will depend on where individual companies have coverage. This is why satellite is common in rural areas, where cable TV companies may not want to expand, or even have the means to do so. In some cases, however, satellite may be preferable to cable for those living in urban regions.

Take the example of Estefania Guzman’s family who changed from cable to satellite and back. Estefania lives in Puerto Rico, where competition is sparse—just like in many parts of the U.S. Her family lives in a relatively urbanized area and had satellite TV first before switching to cable. Some time after, they changed back to satellite. What spurred these changes?

“Both [cable and satellite providers] had really great offers that were interesting to us but, at the end of the day, we always end up watching the same channels,” said Mr. Guzman, Estefanía's dad. At first, the switch to cable made sense given that they had access to it and it was cheaper. But when they realized their cable provider was unable to provide the programming they really wanted, the change to satellite was a natural choice. “So we went back to satellite with a Latino package because it was different and included the channels we watch the most.”

Overall, satellite is more expensive on average than cable, but what you get often offsets this increase in cost—for those who can afford it. Consider that premium cable TV packages are comparable to basic satellite TV packages in terms of number and variety of channels. Both DirecTV and DISH also rank better, if marginally, for customer satisfaction. In the end, the slightly higher cost of satellite may be worth it if you want the wider selection of programming and slightly better customer service.

Streaming Services and Cord-Cutting: The Industry Today

Historically, satellite TV’s biggest competitor has been cable TV. Early uptake of the technology for commercial purposes was low due to the equipment’s cost—why invest in a clunky satellite dish when I can get cable for less? Rural communities aside, there was no real argument for getting satellite if you had easy access to cable.

As the industry grew in the 90s and dishes and converters became less expensive to roll out, satellite became a bigger threat for cable. It eventually shaped up to become cable’s boxing mate in the ring. Satellite was thriving for a long while, then, with revenue and uptake steadily rising through the years.

Today, however, satellite TV faces a foe that is perhaps even greater than cable: streaming services. Netflix, Hulu, Amazon Prime—they’re everywhere. With more newcomers to the market in the way of Disney+ and Apple TV, the industry's subscription numbers continue to grow dramatically. Many people are opting to “cut the cord,” doing away with TV service altogether and paying only for Internet service so they can stream.

Things aren’t looking great for the satellite TV industry (or indeed, for cable either). In 2018, the number of Netflix subscribers alone surpassed that of satellite and cable TV for the first time. A July 2019 IBIS World Market Report published that revenue had fallen at an annualized rate of 2.5% to $36.7 billion over the five years to 2019, including an expected drop of 4.3% in 2019 alone.

IBIS also found, however, that companies are finding ways to keep up with streaming. One way they’ve managed to do so is by starting their own online video-streaming services. Another is by acquiring companies that aren’t facing the losses that satellite TV industry is seeing—DISH buying Sprint’s prepaid wireless business, for example. The future of satellite TV remains suspect, however, with DISH missing profit estimates and DirecTV confirming they’ve launched their “last satellite” for the time being.

Emma Brandeis from Dish said that although “cord-cutting has affected the entire pay-TV industry,” Dish was able to react to this changing landscape by providing their own over-the-top streaming solution. Additionally, she told us that “based on Q3 earnings reports, cable lost more subscribers than satellite providers” and that “Dish had fewer net losses than any quarter since Q3 2014.” She followed by concluding that the evidence showed Americans still valued traditional pay-TV service.