Is Cutting the Cord Really Saving You Money? A Deep Dive

Many people have cut the cord on traditional cable TV over the past decade, driven by a desire for more flexibility, better control over what they watch, and the belief that streaming services are often cheaper than cable subscriptions. However, a closer look at the financial realities of the situation may reveal some unexpected results. This article delves into the question of whether cutting the cord has actually saved money and explores the costs involved with modern streaming services.

Why Cutting the Cord?

The decision to cut the cord typically stems from a dissatisfaction with cable TV services, which many users find to be more expensive and less flexible. In an era where the number of available channels and programs may be overwhelming, many viewers appreciate the ability to choose exactly what they want to watch.

The Cost Comparison

For many, the allure of cutting the cord lies in the potential for savings. Let’s consider a scenario where a household previously paid $100 per month for a basic analog cable package with 50 channels, as was common several years ago. Assuming that package included a single digital cable channel, the cost would have been around $50 per month for the digital option.

Now, let’s break down the costs of the alternative: streaming services. According to the article’s author, they are currently paying $35 less than they were paying for cable TV five or six years ago. That means they are now paying around $65 per month. To summarize the financial situation:

Previous Cable Cost: $100 per month for 50 channels Current Cable Cost: $50 per month for basic digital channels Current Streaming Cost: $35 per month for Netflix, Hulu, Amazon Prime, Acorn, and potentially other services

Alternative Costs: Internet and Other Streaming Services

When cutting the cord, it is important to consider the additional expenses that may arise. For instance, a household will likely need to have an internet connection for streaming. While some may already have broadband internet, for those who do not, it could mean an extra $20 to $50 per month for an internet service. However, this expense can be offset or even eliminated.

The Value of Variety and Flexibility

Despite the financial considerations, it is important to consider the value of the different viewing experience offered by streaming services. With cable TV, viewers typically receive a wide range of channels, including news, sports, and comprehensive coverage from various networks. Streaming, on the other hand, often allows for a more personalized and broader selection of content, including niche shows and international programming.

Is It Worth It? A Case Study

Let’s explore a case study to see if cutting the cord has actually saved costs in a real-world situation. Suppose a family of four, previously paying $150 per month for cable, decided to cut the cord. Their new monthly expenses are as follows:

Basic Digital Cable: $50 Streaming Services: $35 per month for Netflix, Hulu, Amazon Prime, and Acorn ($100 annual subscription for Acorn) Internet Bill: $50 (combined with basic digital cable package)

In this scenario, the total monthly cost would be $135, which is still within $15 less than the previous cable cost. However, the flexibility and variety offered by streaming services could add significant value for many viewers.

Conclusion

While cutting the cord on cable TV may initially seem like a significant financial decision, the true cost savings depend on various factors, including the individual’s streaming service subscriptions, internet costs, and the content consumption habits. The personal preference for content and the need for variety often play a crucial role in the decision-making process.

Questions to Consider:

How much are you currently paying for cable and streaming services? Are you willing to spend extra on an internet service to sustain your streaming needs? Do you value the variety of content offered by streaming services?

For many, the transition to streaming services may not always result in significant savings. Instead, it offers a different kind of value—flexibility, variety, and a more tailored viewing experience. Weighing these factors can provide a clearer picture of whether cutting the cord is the right choice for you.