Streaming vs. Cable Battle of the Budget: Which One Saves You More Money? – CNET

If those numbers seem low at first sniff, that’s because they don’t include taxes and fees, which make up a significant part of monthly costs for cable. They differ based on location, equipment and service type (like regional sports networks), so it wasn’t possible to accurately include them in the prices above. Additionally, we made these calculations using rates for basic internet, which ranges from 200 Mbps to 400 Mbps for most cities featured this graph.

In our research however, we found taxes and fees can add between $30 and $50 to the monthly charge. Xfinity, for example, charges fees for broadcast TV (up to $25 per month) and regional sports (up to $19) and $5 for each additional Flex TV box. Verizon Fios charges for boxes ($6 each) and DVR service (another $12 and up) but doesn’t charge a broadcast TV fee. Spectrum charges monthly for broadcast TV (around $23), a box and remote ($12.50) and DVR service (another $5 and up). Cox and DirecTV/AT&T charge similar fees, and with every provider local taxes will vary.

The tables above reflect the average cost after any promotional one-year or two-year pricing expires. Pricing also excludes discounts for autopay and paperless billing, which is typically $10 across the board. Competition in metropolitan areas like New York can drive prices down versus places such as Kalamazoo, Michigan or rural Kansas, so you may be spending a little more or less based on what’s available.

Be aware that most internet plans available today should be fast enough to stream Netflix, even in 4K quality. The “slowest” budget plan we saw was 25Mbps (AT&T), but Netflix recommends a minimum of 5Mbps for 1080p or 15Mbps to get 4K. This means even the most basic connection should work fine if you only need to stream to one TV at a time. If you have a larger household, then a 50Mbps or even 100Mbps plan should be sufficient, and we found that most budget plans offered this.

Streaming only, without live TV, is the cheapest

The cheapest option? Get the least expensive internet plan you can and subscribe to Netflix, Disney Plus, Max and Hulu — separately or all together — and skip live TV. If you prefer other platforms such as Apple TV Plus ($10 a month), Peacock ($6 per month with ads) or Starz ($10), substitute them below. 

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Monthly streaming service costs compared

You can immediately see that paying for internet alone is roughly the same price as a live TV streaming service such as Hulu with Live TV or YouTube TV, which raised its price by $8 to $73 a month. If you pay $70 per month for internet and $77 for Hulu Live TV, that’s a total of $147. Stick with the cheaper Sling TV, which has a decent amount of cable channels, and the price drops to $110. You should also note that live services from Hulu and YouTube TV include unlimited DVR and don’t charge extra.

You may be able to find a customizable cable/internet bundle that costs between $105 and $125, or a cheaply priced standalone internet service. But as we mentioned above, once you factor in taxes and extra fees, live TV streaming usually comes out cheaper.

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Live TV streaming services offer apps that allow you to watch sports wherever you are.

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What are the pros of switching to a TV streaming service?

While streaming prices continue to increase, there are no taxes or hidden costs. You also don’t have to worry about fees for leasing equipment, contracts (unless you do an annual plan) or waiting (or paying) for the cable guy to come out for repairs or installation. You have the option to go commercial-free, and you’re not spending money on a bunch of channels you don’t want or watch. What else? Because you pay as you go on a monthly basis, there are no penalty fees for early cancellation and deactivation. You can watch content on demand with the ability to split costs for your account by sharing passwords. And that’s all without a credit check. 

We realize prices of on-demand services are increasing, and we’ve outlined those changes below, but costs can be marginal compared to what you’d pay for cable or satellite service.

Which is the best for you?

If you want to save money, then the best thing to do is subscribe to the cheapest internet subscription you can and get a Netflix and/or Hulu subscription. You’re done. However, if you find you would miss live TV, then the cheapest option is adding Sling TV to that. Yet, even signing up for Hulu Plus Live TV and internet will cost less than a premium cable subscription and yield a similar number of channels. Not to mention the copious amount of on-demand content Hulu includes — which now also incorporates Disney Plus and ESPN Plus.

Unless you’re a sports fan who needs a local RSN or cares about streaming lag, the main potential downside to cutting the cord is one of convenience — especially if you’re a channel flipper — as you’ll now need to navigate apps rather than use the channel buttons on your remote. If you’re happy with your cable subscription then you may not need to even worry about cutting the cord, and saving money may be as easy as cutting out some of the packages you don’t use. You could always supplement it with a Hulu, Disney Plus or Netflix subscription too.

While the leap to cutting the cord may seem intimidating, it can still offer a cable TV experience if you want that, as well as saving you some decent money in the process. For more insight on money-saving home entertainment tips, check out our articles on rotating your streaming services, the best antennas and a media player comparison.