I just saw a great article on TheStreet.com on the cost of watching TV. It estimates the cost for the average person of watching TV, over 45 years, is $3.7 million dollars. Now that sounds like a lot, but let me expound on how they got there. First take the $100/month cable bills and invest that into a brokerage account. That $1,200 a year compounded at 8% is a cool quarter of a million alone. Then there are TVs, electricity, movie rental and pay-per-view and not to mention junk -- I mean products -- you buy because you saw them on the Home Shopping Network.
One fact cited -- which really surprised me -- was that for each hour per week of TV watched you spend an additional $200 per year on stuff. According to my calculation that is $3.84 an hour of junk per hour bought because I saw it on TV. As I sit here wearing Reebok shoes and sipping my cool, refreshing Mountain Dew, I think that just can't be right. I do not watch HSN or QVC; but something tells me all those billion-dollar companies only buy advertising for one reason ... it works!
So this brings up the $64,000 question. Who Wants To Be a Millionaire? That would require turning off the TV; getting started on those home improvements, getting a part-time job, or starting that home-based business. Time is money and just what is your TV-watching time worth? If you are still watching "Are You Smarter Than a Fifth Grader," you may not be.
It would be terrible if we didn't know what Rosie O'Donnell said about Donald's Trump's hair. Maybe mom was right ....My mind will rot if I watch enough of the idiot-box.
America is the land of Freedom and Liberty and for all the good it may do; I don't think we should outlaw TV's quite yet. If you want to let your mind rot, go right on and do it. But please don't tell the paternalistic mayors of San Francisco or New York who want to protect me from the evils of bottled water or trans-fatty French Fries.
I admit I like my remote control and when it comes to financial bets, I hate to buck the system. If you can't beat them ...join them. So if you have canceled that cable bill and are investing that money how about sticking it in some entertainment companies betting your friends aren't going to have that kind of self discipline. You have the big four networks CBS (NYSE: CBS), NBC is owned by General Electric (NYSE: GE), ABC is owned by Disney (NYSE: DIS) and News Corp (NYSE: NWS) owns Fox. There is Viacom (NYSE: VIA) and the Home Shopping Network owned by IAC/InterActiveCorp (NASDAQ: IACI). If you need more ideas flip on the TV for a moment and some company will announce it's product for you to invest in.
Kevin Kersten is an Options Analyst with InvestorsObserver.com. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You To Dump A Stock.
Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about. Mr. Kersten also owns a TV which he freely admits he watches way too much.
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Reader Comments (Page 1 of 1)
7-23-2007 @ 6:27AM
Bill Olmsted said...
People "buying stuff" is what makes the US and world economy go 'round.' Without consumers buying stuff, Options Analysts who writes idiotic blogs wouldn't exist.
Maybe you are right, Mr. Kersten
7-23-2007 @ 11:13AM
Bill Olmsted said...
TV is the greatest invention ever. I watch it 24 hours a day. I buy everything I see advertised. I haven't gotten out of bed since 1968 because I don't want to miss anything on my beloved tube . Those of you who think exercise, fresh air, the arts, good literature, family, friend, socializing and so forth are more fufilling than an episode of the Twilight Zone are missing the boat. I say chill out. Grab a brew. Turn on. Tune in and drop out. TV forever baby!
7-23-2007 @ 11:16AM
Mike N said...
The same can be said about the cost of AOL over the same time period of 45 years and the roughly the same cost. So now tell me why AOL chose to publish this story about how much cable TV cost. Talk about Non-news nonsense.
7-23-2007 @ 11:16AM
James Kirk said...
Well said! But TV can empty one's pockets in many other ways:
1) placement of items
2) TV "experts" who select stocks to make $$$. (Remember the .com day traders??)
3) suggestion (ie sports announcers who say "if you had HDTV you could see this...)
Ran out of space, but there's lots more
7-23-2007 @ 11:17AM
jim candler said...
The best thing you can do for your kids is to watch unpluged TV with them. Try it. Just sit in front of your TV with your kids and unplug the set. You'll be amazed at the great conversations you'll have with them in front of that blank TV once they get over the shock and confusion. Make it your new "bad" habit.
7-23-2007 @ 11:21AM
Martin said...
Makes one wonder if you can say the same thing about the internet.
7-23-2007 @ 11:22AM
former tv watcher said...
Two months ago I lost my job. The family had to make financial decsions, including dropping Directv. It was very hard at first not having 150 channels at the flip of a switch. But now I'm saving $89 a month and I don't miss watching TV at all.
7-23-2007 @ 11:22AM
Penelope said...
Wow, these statistics are awesome. I always knew the tv is just a way to sit on your butt. In fact, I feel guilty doing it half the time. Read a book, go for a walk, call a friend. There's so many things to do in life...go DO them instead of being entertained by commercials, and mindless programs. (Yes there are several educational ones, I know). Travel, reading and learning new things...so many other ways to learn.
7-23-2007 @ 11:23AM
inventor said...
these statistics are distorted.... most the products would be consumed tv or not.... this writer must think people are so dumb we would believe everything we read.... 2 thumbs down for stupidity
7-23-2007 @ 2:09PM
Barbara said...
Everything in moderation, TV, internet, drinking, smoking. You could name 1000's of items or services to give up to invest that money. Balance of life is what living is all about. Personally, I learned a long time ago to give up a little to get what I wanted out of life, by a little I mean about 5-7 hours a week to start a home base business that in turn gives me that extra to invest for the long run. http://www.barbara.agelessway.com
7-23-2007 @ 2:10PM
ME~ said...
We don't have broadcast TV. No cable & no antenna... We have a TV that's only used to watch an occasional movie, eduactional recordings as needed as well as home movies once in a while. We have 100% control of our childrens viewing. As a result our kids have real life experiences that enrich thier development~ They are also not desensitized...
My children dont feel unjustly deprived of "pokemon" or "Thomas" because we read the books. Lifes short and there are no re-runs ;)
8-02-2007 @ 2:32PM
Matt said...
I just spent a week in a Log Cabin in Colorado. I brought with me the bare essentials... Clothes, Toiletries, Some Hiking Boots and a good book. While doing this I realized that I was completely happy with just that. I spent my day time hiking and my evenings reading. I realized how much I really didn't miss TV or Video Games or all the other random crap I fill my day with. TV is overated. Save the money.
-Matt
http://www.howiwillberich.com
8-21-2007 @ 7:18PM
Mark said...
Good Golly, someone has wayyyy to much time to their hands to come up with these statistics, wouldn't you all agree? Nevertheless, if you have seen enough tv, you've seen our commercials. We watch tv normally every sunday & tuesday evenings. We are in that "noon till five" workforce you see on tv. TV can give you the "Slight Edge" if you are viewing the correct programs. What do we do meanwhile? Excersize, proper rest and play. And of course, read some posts here and there, on occaision.
Cheers,
Mark
http://wecare.simpleasabc.com