What the Tech: Are you really saving money by cutting the cord?
By JAMIE TUCKER Consumer Technology Reporter
Cable and satellite TV providers had a rough 4th quarter in 2023 as nearly a million households cut the cord and switched to streaming programming over the internet.
The thinking is streaming saves money but it might not be as simple as it appears. How much can you save? I’ve talked to some people who aren’t saving as much as they thought because the cost of streaming services has risen dramatically in the last few years.
I tried crunching the numbers to see what the savings might be.
It’s difficult to say how much cable TV costs because there are a lot of variables. Such as how many TVs you have, what channel package you want, and does it includes internet, phone, or a modem. How much are added fees and taxes? While some say their cable bill is over $300 a month, others pay under $80 just for TV.
Since streaming services continue to raise prices, the savings may not be what you think.
The internet won’t be included in a cable package so you’ll pay for it separately ranging from $50-$100 a month depending on which company offers service in your area.
If you want regular Live TV with sports, you’ll need a service like YouTube TV, Hulu, or Fubo. Those are going to cost from $70-$80 a month. So you’re sitting at around $120 or more each month by streaming.
What about the extras like Netflix, Disney+, Prime, and Paramount? Those are going to be extra subscriptions for streamers and cable subscribers.
And the monthly charges have increased across the board. To save money on those services, many people are doing what’s called “churning” or rotating 2 or 3 services rather than subscribing to all of them at once.
The math for one household may be different from another, so you’ll need to look over a cable or satellite bill to see what you’re paying and compare that price to the $120 or more monthly for a live streaming service and the internet.
To save money, look for bundles and benefits from your cellular provider.
Check your credit card bills. Are you paying for a streaming service you’re not watching very often? 42% of people say they were paying for a service they didn’t know they had. This can happen if you sign up for free trials that convert to monthly payments automatically.
You can unsubscribe and re-join when there’s something you want to watch. If you’re already paying for streaming, you may find cheaper or free alternatives. Rather than paying for Prime, look at FreeVee which offers many Prime shows for free with ads.
Before switching to another service look closely at your bill and look for hidden fees. Before making the decision check to see how much you’ll have to pay for internet and whether the companies offering internet in your area can offer the speeds necessary for streaming and everything else you use it for.
