Budget Boosting Idea
Have you “cut the cord” yet?
No, I’m not talking about that cord.
I’m talking about the cable cord.
Many people in the entertainment sector have identified 2015 as the year to cut your cable cord as the rise of live-streaming services and the mounting cost of cable subscriptions has led many viewers to look for viable alternatives to their traditional cable services. Not only are Netflix and Amazon rising in the ranks as legitimate producers of quality television, the addition of a la carte subscriptions from powerhouse HBO and services like Sling TV and PlayStation VUE have created an open market where viewers can literally custom design cable packages to meet their needs and their budgets.
Plus, the savings can add up to hundreds of dollars a year.
Understanding the Modern Television Viewer
The key driver in this change in entertainment availability is, not surprisingly, the Millennials. From Netflix and Amazon Prime to Apple TV and Roku, the younger generation has lead the charge in ditching cable for years. Busy, demanding, and raised in the age of the DVR, this sector of the population doesn’t have the time or desire to sit down for live viewing of anything outside of the Super Bowl and the season finale of The Bachelor.
Pair these demands with a changing programming landscape that has sent high-quality TV and actors from network channels (ABC, NBC, CBS< etc.) to cable channels (FX, AMC, etc.) to subscription channels (HBO and Showtime) to, finally, subscription services (Netflix and Amazon Prime) and you have the perfect storm for the end of cable services. In fact, according to the FCC, the average basic cable package in 2014 was $66.61 per month!! That’s not even counting HD services, DVRs, and premium channels like HBO.
Cable Alternatives, Costs, and Savings
Because every one’s needs, tastes, and budgets are different, taking time to use one of the two popular “cord cutting cost tools” available from Slate and The Verge is probably the best way to see what your household can save when you cut the cord. However, before you do that, taking some time to understand what services are out there and how much they cost, is helpful as well.
Please note that I am using the FCC’s average numbers of $66.61/month or $799.32/year as a basis to calculate savings.
- Netflix
One of the most well-known cable alternatives, Netflix offers full program histories from a show’s pilot to last year’s season finale along with classic and many new-release movies. It also features exclusive programming such as House of Cards and Orange Is the New Black, which comes out in bulk by season at various times throughout the year. This is a great option for the casual TV fan who doesn’t mind staying one year behind seasons (generally the service releases last year’s season each fall)
Cost: $8.99/month for HD
Potential Savings: $691.44/year - Amazon Prime
Similar to Netflix, Amazon Prime streaming service offers current shows, movies, and exclusive programming such as Transparent and Alpha House.
Cost: $99/year
Potential Savings: $700.32/year - Sling TV
This new live-streaming service from Dish Network debuted in January and is one of the primary reasons that people have cut the cord in the past 10 months. Sling TV offers most of the popular “basic” cable channels such as AMC, TNT, Food Network, the Disney Channels, and ABC Family. Viewers can watch these channels live and on-demand, filling the gap usually taken by a DVR.
Cost: $20/month
Potential Savings: $559.32/year - Hulu Plus
Another well-known live TV streaming service, Hulu Plus allows viewers to catch live, most non-premium cable shows on networks like ABC, FOX, NBC, and the CW. They also include archived programming from channels like Comedy Central and FX similar to Netflix/Amazon. CBS devotees can also pay an extra fee for access to their content as well.
Cost: $7.99/month ($5.99/month extra for CBS All Access)
Potential Savings: $703.44/year ($631.56/year if you add CBS) - HBO Now
If you are a die-hard fan of Game of Thrones or Project Greenlight, opting for the HBO Now subscription is a must. Giving you access to all shows and movies aired on the HBO networks, you can access the HBO Now service through any internet-enabled device from tablets and computers to Roku boxes and Apple TV.
Cost: $14.99/month
Potential Savings: $619.44/year - Indoor TV Antenna
Many “old school” television viewers may enjoy seeing television as it happens. For them, the use of an indoor TV antenna (i.e. the new school version of rabbit ears), is sufficient enough as it lets you access your local network channels and see live events like sports in your local area.
Cost: $10/year
Potential Savings: $789.32
How You Can Have Your TV and Save Money, Too
For many people, just one of the options above will not be enough. However, even without using the cord cutting tools, it is easy to see how combining these services can still equal massive cost savings. Furthermore, depending on other utilities you use, you may be able to expand your viewing even more. Personally, I have basic digital cable at my house because it only cost $1/month extra to add 24 basic channels to my high-speed internet package.
The only real gap when it comes to cable alternatives is for the die-hard sports fan who will have a hard time accessing non-local games without cable or satellite sports packages. Many sports offer internet streaming services, though, and ESPN is included with Sling TV.
Finally, fans of a few, specific shows, can also opt to just purchase the season outright through iTunes or Amazon, which costs about $30 per season. With nothing but a TV antenna, you can actually purchase up to 26 individual seasons of television before cable becomes more cost effective – a truly a la carte option!
**What alternatives to traditional cable do you use? We’re a Netflix family!**
