Do we even need cable anymore? Thanks to online streaming services such as Netflix and Hulu, you may be thinking that you don’t. After all, you can always watch your TV favorites online—and even find new online-only shows. Before you make the exclusively online leap, do your homework. Cutting cable can cost more than you think.
Can your internet handle streaming video?
According to a 2014 report by the FCC, the average cable bill is about $66 a month. Your internet and cable are likely packaged together, and since you need internet to stream your Netflix, you can’t entirely kiss the cable provider goodbye. However, you can downsize your package to an internet-only option.
The bad news, though, is that you can’t rely on the cheapest internet service if you want to rely on your Roku. High-speed internet is a must-have; there’s nothing worse than waiting ten minutes for a 22-minute episode to load. Affordable, speedy internet depends on your location and the availability of competitors in your area. On average, an internet-only bill costs between $30 and $50 dollars.
We’re going to look at the best case scenario here: you were paying $69.99 a month for mid-tier cable (consisting of 50 or so channels) and internet and decide to downgrade to a strictly internet plan. Now you’re paying a national service provider $25.99 a month for high-speed internet, which is a good deal. So far, you’ve saved $44 a month, but you haven’t bought any streaming subscriptions yet.
What is the best online streaming service?
There are several streaming services available. We’ll start with the two streaming giants you’re definitely familiar with: Netflix and Hulu.
Netflix and Hulu have become household names. Five years ago, we would never have imagined that an online series could beat a traditional TV show for an Emmy, but the Netflix originals House of Cards and Orange is the New Black proved us wrong. Although the one-time DVD delivery service boasts a number of popular original series, Netflix is best for rerun binge-watchers. Currently airing and recently finished TV shows likely won’t have the most recent season on Netflix. However, their library trumps all in terms of movies and older television shows. If you want to marathon episodes of Friends and follow the Internet’s favorite corrupt politician, Frank Underwood, then Netflix is a must have.
There are three Netflix membership packages. You can pay $7.99 a month for standard definition streaming to a single device at a time. For a dollar more, you have HD streams for up to two devices at once. Netflix’s family plan gives you up to four HD screens with simultaneous streaming. Most folks opt for the $8.99 package, if only for crisp video quality.
Hulu, which is owned by NBC, Fox, and Disney-ABC, offers a limited free option. However, you won’t have access to many of your favorite TV shows until a week after the original air-date. Your selection is also severely limited. For $7.99, you have access to nearly all of the latest TV shows. Although Netflix is known for their original content and expansive selection of old favorites, Hulu is becoming a serious contender: they recently acquired the entirety of Seinfeld and will be bringing the newest season of FOX favorite The Mindy Project on as an original series. You’ll also find more international programming on Hulu; they have expansive selections of Korean Dramas and Latino programming. For an additional $8.99 a month, you can watch Showtime programming as well.
Both Hulu and Netflix can be streamed on your computer, Smart TV, Chromecast or Roku devices. And of course, you can stream to your smartphone as well. It’s common for many people to pay for both Netflix and Hulu. If you subscribe to both, you’ll be paying $16.98 a month: $8.99 for the HD Netflix subscription and $7.99 for Hulu. That brings your entertainment total to $42.97 a month.
The gaping hole in the streaming game: Where are the sports?
There’s a four letter word that draws people back to cable providers: ESPN. Although you can watch highlights and old games online, nothing beats watching the action of a game unfold on live TV. Many streaming services fall short when it comes to sports, but Sling TV has you covered.
Unlike Netflix and Hulu, Sling TV is a live streaming service with access to 16 real channels. The starter package is $20 a month and offers ESPN and ESPN2; for an extra $5 a month, you have access to nine premium sports channels. Of course there’s more to Sling than sports: you’ll also get CNN, AMC, and TNT, to name a few. Sling is currently available for streaming on Roku, Amazon Fire sticks, and Xbox One.
Cable versus Streaming. Who wins?
Sling + Netflix + Hulu + Internet = $62.97 a month. Compare that to your $70 cable bill, and you’re saving a whopping $7.03 a month. Not bad, if you were trying to rationalize a monthly Big Mac meal. Dropping cable can save you money, but you need to think about what you watch before cutting the cord. Do you need Netflix, Hulu, and Sling TV? If you really think so, you’re likely better off with your current cable package.
