How Much Money Will Cutting the Cord on Your Cable Service Really Save You? (2024)
If you're thinking about cutting the cord on pay TV this year, you're in good company: it's estimated that about a quarter of all Americans could do away with traditional cable by 2022. But just how much money can you save by changing your TV-watching habits? Reviewed recently broke it down.
The average cable or satellite user spends a little over $100 a month on their TV bill, which means canceling their service could save them over $1200 annually. But many pay TV defectors will likely be looking for an alternative way to watch their favorite programs. Assuming you're one of the 83 percent of consumers who pays for both TV and internet, switching to a web-based service shouldn't be too expensive. An Amazon Prime plan costs $119 a year, a standardNetflix subscription (HD and two screens at once) costs $156, and a basicHuluplan costs $72. Even if you spring for all three choices, you'll still only be paying $347 annually, saving you about $853 if you're a former cable subscriber.
Web-based streaming isn't the only option cord-cutters have. If you can't part with your favorite network programs, you can purchase an OTA antenna for about $50. Watching cable shows without dealing with a cable company is also a possibility. Sling TV offers a Blue service, which includes access to live channels like FX, Comedy Central, HGTV, Food Network, and Bravo through a cloud-based DVR for just $30 month. If you wanted to try all the options above, it would still only cost you about $757 a year, which is $443 less than cable or satellite alone.
No matter what you're looking for, there's likely a service or device out there that complements your viewing tastes. Here are even more cable alternatives to get you started.
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We did the math, and the exact answer ranges from $30 to more than $100 every month, depending on what you actually watch. The general answer, however, is that cable is almost always more expensive than streaming, especially once you figure in all the taxes and fees that get added to your monthly cable bill.
Ultimately, cutting cable out of your budget and focusing on the entertainment content you do want will save you money. The trick is to keep an eye on the provider(s) that you use, making sure that you only pay for what you want to see.
Is cutting the cord worth it? The average US household spends $109 a month on cable or satellite TV. If you cancel cable and go all-in on free streaming, you could save $1300+ per year. You could mix and match two streaming services each month and still save $1000+ each year.
Keep in mind that cord-cutting might also make you pay more for Internet. To support multi-user streaming in one household, it's possible you will need to upgrade your Internet plan for more speed.
Cable TV providers typically charge a monthly subscription fee that includes access to a range of channels. However, these fees can be significantly higher than what you might pay for a Roku device. Additionally, cable TV often requires long-term contracts and additional charges for equipment rental or DVR services.
Streaming is still (usually) cheaper. If you want to have the cable TV experience without the fees and contracts, then live TV streaming is the next best thing. These services can offer a program guide, DVR and most of the familiar channels you're used to with cable.
Cut the cord, cancel TV service and keep your internet. If you've decided it's time to cut the cord but stick with your ISP, the first thing you should do is review your contract.
Cable plans at speeds of 100+Mbps download/20 Mbps upload can cost $50-100 per month. Fiber plans often start at $30-50 for 100+ Mbps for both upload and download speeds. Gigabit fiber plans tend to average $80-150 monthly.
1. Sling TV. Sling TV is the best cable TV alternative for a simple reason: its lower price and customizable nature feel truly in line with the idea of cutting the cord. So much so that our streaming editor Kelly Woo chose it to replace cable.
Rising cable costs and the thousands of options for shows and movies on various streaming services have been key factors in the popularity of cord-cutting. As long as streaming subscriptions are more affordable than cable for the average household, it makes sense to move away from cable.
There are a number of reasons why people are choosing to cut the cord, but the two most common are the high cost of cable TV and the increasing availability of streaming services. Cable TV is expensive. The average American pays about $100 a month for cable, and that's just for basic channels.
The best way to scrimp on cable TV rates is to look for the basic or starter package your local service provider offers. You could also try to reduce your premium channels and extra equipment. If you need more than one service, it helps to look for deeply discounted bundled offers. Should I choose a contract-free plan?
Long story short, you no longer need a cable subscription to watch your favorite shows and movies on a smart TV. There are many options available if you're looking to rely solely on streaming. However, you'll want to make sure to weigh your options before “cutting the cord.”
You don't need to sign up for a monthly plan just to access basic cable channels. You can easily access your local stations with an OTA (over-the-air) antenna. They don't cost very much compared to how much you'd spend on a pricey monthly bill.
But unplugging the box in the room you use the most, such as your living room or bedroom, is probably not a great idea. Sure, you'll save a little on your power bill, but at the cost of introducing a lot of hassle into your life.
Is cable TV or streaming the better option? If you're looking purely at the quality of channels offered, cable provides better packages than live TV streaming services. You'll get more channels in total and the option to save by bundling with an internet plan.
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