Does embracing streaming technology save you money?
You’ve probably heard rumors about people cutting the cord. “Cutting the cord” means forgoing cable television service in favor of internet streaming services like Netflix, Hulu, YouTube, and Sling. These providers offer streaming content, including current television shows, but at a substantially lower cost than the traditional television package.
Why is Cable so Expensive?
Cable companies must come to agreements with the networks they broadcast, and that requires money to exchange hands. To bring you the content and channels you want, they’ll have to charge you for it. Plain and simple, premium channels are more expensive to host, and thus the cost is passed onto customers.
Cable companies are running a business after all, and for a business to be successful, they have to bring new customers in constantly. To bring in new customers, providers often offer enticing deals for first-time customers, but once you are in the funnel, prices can jump astronomically. Some users have reported a bill jump of over 25% when a contract period ends, and there is little the cable companies are willing to do to bring the price down. The introductory prices seem reasonable enough, but once the contract period is over, the price jump can leave many users feeling a bit put out.
What is the Cost of Cutting the Cord?
Netflix runs at an average cost of $9.99 per month, as of September, 2018. That seems like a great option, but remember, Netflix doesn’t include current titles, and you are limited to viewing what the company has to offer in their current rotation. That library is subject to change without notice for subscribers, so a show you’ve been binging might be here today and gone tomorrow.
Hulu, on the other hand, offers streaming access to current shows. With their Hulu+ plan, you’ll get access to most of today’s current programming, but a day later than you’d see it on traditional television. Programs are now starting at $5.99 a month, but dropping commercials will cost extra, as will adding premium content from HBO, Showtime and Cinemax. Using Hulu's base plan could end up saving you money. Hulu also offers a program that includes live streaming of 50 of today’s top television channels for $39.99, and that also gives you access to the company’s library and originals.
Sling, a streaming company that offers over the top service, allows consumers to pick the package that works for them. If you are a sports nut, you can add sports channels at an additional cost. If you can’t get enough of the lifestyle-genre of TV, you can add a bundle that includes channels that show lifestyle content. If you choose to go “all-in” with Sling, you’ll see a bill between $40 and $54 per month, depending on some of the choices you’ve made. SlingTV offers live television, so you'll see programming as it happens, while still saving money.
Don’t forget though, you’ll still need the Internet to run these streaming services, and for that, you’ll need to go to your cable company. The base cost of Internet service is typically $50.00 per month (plus taxes and fees), but packages with higher speeds tend to be more expensive. You’ll need to factor this cost into your cord cutting savings.
Can you Save Money by Cutting the Cord?
Saving money by cutting out cable is a bit more complicated than it may seem on the surface. The short answer is yes, you can save money, but it’s not a given. Before you go ahead and cancel your cable contract, you’ll need to weigh the pros and cons and find a streaming service that works for you.
Figure out what type of programming you are most interested in. If you aren’t a huge live TV watcher and want access to something, Netflix will do just fine or even Hulu’s base plan. This type of streaming service will save most people money on their bill.
If you are a live TV watcher or you are a big sports fan, however, things get a bit more complicated. Once you add the sports add-on you’ll need to enjoy the games you love, the price you pay might be closer to your cable bill than you would like.
The bottom line is you’ll need to do your research and consider all of your options before making a final decision. Weigh the savings over the hassle to find a solution that works for your life and your bank account.
* Independent Bank is not recommending a specific company, and the user is responsible for researching the privacy/security policies before utilizing the service of these or other similar companies.
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