Is It Really Cheaper to Cut the Cord and Switch to Streaming?
Over the past decade, millions of households have asked the same question: Is it really cheaper to cut the cord and switch to streaming? The rise of Netflix, Hulu, Disney+, YouTube TV, and dozens of other streaming options has given consumers more choices than ever before.
But with rising subscription prices, internet fees, and add-ons, some wonder whether cutting cable actually saves money—or if it just shifts the cost.
In this article, we’ll break down the true long-term costs of cable vs streaming, explore the hidden expenses people overlook, and help you decide whether cutting the cord fits your household budget.
Why People Consider Cutting the Cord
Rising Cable Bills
Cable bills have consistently risen faster than inflation. In many U.S. households, the average cable TV package costs between $70 and $150 per month, not including internet service or premium add-ons.
Flexibility and Choice
Streaming offers flexibility—cancel anytime, choose packages that match your interests, and watch on multiple devices. Unlike cable, you’re not locked into long contracts.
Content Preferences
Some households want live sports, while others just need on-demand shows and movies. Streaming allows consumers to personalize their viewing experience, but personalization often comes with multiple subscriptions.
Breaking Down the Cost of Cable
Before comparing, let’s understand what a typical cable bill looks like:
-
Base TV package: $70–$100/month
-
Premium channels (HBO, Showtime, etc.): $10–$20 each
-
Equipment rental (boxes, DVR): $10–$15 per TV
-
Regional sports fees & broadcast fees: $10–$25
-
Taxes & hidden fees: $5–$15
Average total cable bill: $120–$180/month for most families.
Annualized, that’s $1,440–$2,160 per year, not including internet service.
The Cost of Streaming Services
Streaming looks cheaper at first glance, but it depends on how you subscribe.
Popular On-Demand Services (Monthly Pricing as of 2025)
-
Netflix: $15.49
-
Disney+: $13.99
-
Hulu (ad-free): $17.99
-
Amazon Prime Video: $8.99 (standalone)
-
Apple TV+: $9.99
Live TV Streaming Alternatives
These mimic cable with live channels, sports, and news:
-
YouTube TV: $72.99
-
Hulu + Live TV: $76.99
-
Sling TV: $40–$55
Additional Costs
-
Internet: $30–$90/month (required for streaming).
-
Streaming devices: $30–$200 (Roku, Fire Stick, Apple TV, smart TVs).
-
Password sharing limits: Some platforms now restrict account sharing, forcing additional subscriptions.
Strategies to Save Money While Streaming
1. Rotate Subscriptions
Don’t keep all services year-round. Watch Netflix for a few months, then cancel and switch to Disney+.
2. Use Free Streaming Options
-
Pluto TV
-
Tubi
-
Freevee
These ad-supported services offer free content.
3. Share Family Plans (Legally)
Some platforms allow multiple profiles under one account—maximize household use.
4. Avoid Add-On Traps
Premium add-ons like Showtime or Starz add up quickly. Only subscribe when you plan to watch something specific.
I do believe you will definitely be able to reduce your monthly bill switching to streaming versus remaining on cable TV. The first and most important thing to do is to look at how much you are paying each month for your internet service. Look to either renegotiate or switch to a new provider if they are available in your area. Look for a package deal like 300/30, which stands for 300mb download. Generally this should do nicely for the majority of households with 30 internet devices or less. The best part the 30 stands for $30/mo. That right there will save you a great deal and provide great service.
Another cost mentioned above is cable companies basically rent you their equipment. You pay a monthly fee to use their cable modems and cable boxes. This cost is usually $10-15 dollars per month. If you purchase your own cable modem, the ROI on this is usually less than a year and you can take it with you anywhere you live. They are plug and play and work great. If you still have a regular phone line, no problem they support those as well.
For those of you who are switching from Cable to streaming for the first time. The biggest change for you will be how each app works. You may want to consider going from cable to one of the bigger platforms such as Youtube TV. I say this because the menu system is laid out very similar to cable, so the move from one to the other will be minimal.
To discover the best streaming products. We would love you to visit our Affiliate links below.