Is Cord-Cutting Right for You?
Only a year ago, cutting the cord was a much easier decision than it is today. What changed? Well, for one, prices. While a year ago the advice was to find streaming services that provided your favorite channels and count your savings, it’s not necessarily the case anymore.
Streaming services and on-demand streaming video services have raised their prices. We see major media companies like Disney and WarnerMedia are getting ready to launch their own stream services. And, cable companies are trying to hang onto the subscribers they have left by offering discounted packages. There are a lot of changes and a lot of choices to make. Ultimately, creating a lot of consumer confusion.
It’s likely that you aren’t going to get everything that you want from a single service. More than 70% of US households using streaming services subscribe to more than one. 20% of US households subscribe to four or more services. If you are a household subscribing to a cable-replacement service, premium channels and a Major League Baseball (MLB) package, you might not be saving as much money by cutting the cord versus traditional cable.
When streaming services came to be, traditional cable was seen as over-priced and didn’t offer as much as streaming services do today. People that enjoy multiple services like Hulu, HBO and Netflix enjoy so much more. So, depending on your preferences, it may be worth the extra cost.
How much watching TV actually costs you
Are you paying too much to watch TV? Well, that depends on how many services you use and what your content preferences are. Many Americans stack up the variety of content with streaming services. It’s an à la carte viewing of channels, shows and movies.
The national average cost of traditional cable in the US is $102. When it comes to streaming services, users can pay roughly the same each month – $103 dollars a month – for six different streaming services. Here’s an example breakdown:
- YouTube TV – $50
- Netflix – $16
- HBO Now – $15
- Amazon Prime Video – $9
- Hulu – $6
- Disney+ – $7 (Coming in November 2019)
While the cost appears to be more for streaming, you have to consider that traditional cable packages often tack on fees. So, while streaming services are still less expensive than traditional cable packages, the prices are rising. Which means that by cutting the cord, consumers are not saving as much money as they once were. However, consumers can still get a lot more variety of content for their money.