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The popularity of streaming services has skyrocketed since 2020. Today, at least 99% of American households pay for at least one or more streaming services, according to recent Forbes data. Due to the number of different movie and TV streaming platforms, many households — around 54.4% by the end of 2023 — chose to ditch their cable TV completely and save money.
However, as streaming services have gotten more popular, so have their prices, leading many to wonder whether choosing one over the other saves money. According to experts, both streaming services and cable offer pros and cons, but one ultimately costs less for users.
Pros and Cons of Streaming and Cable
Streaming has its benefits, including flexibility and the ability to subscribe and cancel anytime without any long-term contracts. You can watch a variety of content on numerous different services, such as Netflix, Hulu, Disney+ or Amazon Prime. With streaming, you can watch what you want when you want.
However, different streaming platforms offer different content, often requiring users to subscribe to multiple services, which can quickly add up. Furthermore, inflation has impacted the costs of streaming services in recent years, and 45% of users have canceled a streaming subscription in the last year because costs got too high, according to Forbes.
Alternatively, cable TV usually provides bundled services that combine TV, Internet and phone plans and can be more cost-effective. Unlike streaming services, cable includes live TV programs like the news, sports and local channels. With this being said, cable often has a higher base cost than a single streaming service and it usually requires long-term contracts.
The Cost of Streaming vs. Cable
A cable package can range from $50 to over $100, not including potential cancellation fees and additional costs from required equipment or premium channels. Alternatively, Disney+ costs $8 a month, Netflix costs $6.99 a month (for a standard plan with ads) and Hulu costs $7.99 (also for a standard plan with ads). Even if one subscribed to all three streaming services, it would still cost significantly less than cable TV.
While the average cable bill is about $122 a month, the average household only watches about 20 of those hundreds of channels, according to data from MarketingProfs. Additionally, many people choose to combine both streaming platforms with their cable.
Which Option is Cheaper?
Streaming typically costs less than cable. But the key to saving the most money with streaming is limiting yourself on how many monthly subscriptions you choose. The base cost of cable is higher than streaming, but if you add high-speed internet and streaming services, the cost is closer to or higher than cable’s base price.
Generally, streaming services are cheaper than cable, especially when consumers are selective about their subscriptions. However, for consumers who want a wide range of content and opt for many streaming services, the overall cost may exceed the cost of cable.
Ultimately, choosing streaming or cable depends on individual viewing habits. While streaming tends to be the more affordable option, the price you pay depends on the person, their preferences and how many streaming services they choose to pay for.
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