The Best Way to Cut Cable Costs? Cut the Cable Cord!

As average monthly cable costs soar over $200 a month, it might be time to rethink your relationship with cable television. The best way to cut cable costs is to cut the cord altogether, but don’t worry – it’s not as scary as you think!

Cost of Cable Television

Allconnect, a marketplace connecting customers with internet service providers, conducted an in-depth review of cable costs, finding options ranging from $35-146 a month for cable alone and $45 to $225 when bundled with internet (which is typically required for cable these days). 

Those numbers didn’t account for the hidden fees, like service agreements, equipment rentals, and taxes often associated with cable, or the add-ons for regional broadcast or sports packages. 

When you factor everything in, average cable costs soar to over $200 each month.  

The Best Way to Cut Cable Costs? 

Thankfully, cable companies no longer monopolize how we watch television, meaning the best way to cut cable costs while still enjoying your favorite shows is to ditch cable altogether and use an alternative instead. 

Alternatives to Cable

There’s even more good news. With so many alternatives available, there are tons of options and tons of competition, keeping the prices relatively low. 

Streaming is cable’s primary competition, especially among millennials, but you should also consider satellite or YouTube. 

Cable vs. Streaming

Most people who cut cable rely on a streaming platform for television. Streaming services start at less than $10 a month, so if you pay for just one service and a basic internet plan, you will pay less than $100 a month for entertainment. If you’ve been paying upwards of $200 a month for cable, that’s like cutting your bill in half! 

Of course, the low-end streaming services come chock full of ads, but even the ad-free options are cheaper than cable. The premium versions of streaming services range from $8-$23 per month. 

Streaming prices increase when you combine all services or wish to watch live television. However, they’re still typically cheaper than cable. 

Common streaming services that make great alternatives to cable include:

• Amazon Prime
• Netflix
• Hulu
• Max
• Crunchyroll
• CBS All Access
• Paramount

As streaming gains steam, more and more companies look to get into the game. Unfortunately, that’s bad news for customers. As each network and studio develops its streaming platform, it refuses to license its content to others. For example, Star Trek left Hulu when Paramount made its own platform, forcing users to sign up for an additional service to continue watching their favorite show. 

Paying for Multiple Streaming Services

If you opted for the premium service of the big four streaming services, you’d still pay less than cable each month. The combined cost of Hulu, Netflix, Max, and Disney is $80 per month. When you add the internet cost, your total internet bill will be around $140 – a savings of $60 per month over cable. 

However, streaming also has additional perks, like no contracts and no hidden fees. Many cable cutters rotate streaming services, paying for Hulu for a few months and binging the content there before switching to Netflix. With this system, they only have to pay one streaming provider each month, but still have all the entertainment they desire at their fingertips. 

Cable vs. Satellite

Satellite television brands itself as the alternative to cable, but realistically, the prices don’t differ much. Satellite costs range from $70-160 per month and include hidden equipment rental and service fees. 

One advantage of satellite is that you don’t need internet; however, in today’s world, most of us have internet anyway, so that’s not much of a cost saver. 

Cable vs. YouTube

What started as a video sharing platform morphed into a legitimate alternative to cable. YouTube features a wide range of shows you can’t find anywhere else, in addition to clips of your favorite shows, news, and sports. You can access most of the content for free, but must pay a premium for ad-free viewing and additional add-ons.

Nothing highlights YouTube’s place as a legitimate way to cut cable better than it’s NFL Sunday Ticket offering. What used to be a Satellite exclusive is now a YouTube exclusive, making the platform the top choice for football lovers. 

How To Watch Live TV After Cutting Cable

Live TV remains cable’s most significant advantage, but streaming services offer options. Unfortunately, they’re almost as costly as cable. 

Hulu is the only “top 3” option offering live TV, with prices ranging from $76-90 per month, without factoring in internet options. 

Other platforms, like YouTube, Philo, and Sling TV, also offer plans, and they’re all cheaper than cable. However, the prices rise when you bundle live television plans with streaming services. Customers who cut cable to save money must be careful, or they’ll find themselves paying similar rates for all the different services. 

Making the Decision to Cut the Cable Cord

If you’re savvy about your streaming services, you can save a lot of money by cutting cable. You must decide what’s more important: an extra $100 a month or live television. 

I cut my cable cord years ago and haven’t looked back, but it was a difficult change at the time. I grew up with cable television and had some form of it my entire life. Although I only used it for a few shows, I struggled with the decision to cut the cord for good. 

Where would I watch the newest episodes of my favorite network shows? How would I watch my precious Chicago Bears play?

After some soul-searching, I realized neither was worth the extra money I paid for cable.  I could find my favorite shows on streaming platforms and go to a sports bar to watch my team play if I really wanted to. I’d get a day out, which would still be cheaper than cable!

Change is hard, though, so weighing all the options before cutting the cord is vital. Decide why cable is crucial to you and whether that’s worth the extra expense. If it is, that’s okay. Money isn’t everything. But you may want to consider cutting the cable cord if it isn’t. 

How To Cut Cable

Cable providers don’t make ending service easy. Most of them lock you into a two-year service agreement, and you’ll have to pay a fee for canceling early. 

If you’re near the end of your agreement, it may be cheaper to wait it out, but if you have a year left, it might be cheaper to pay the cancellation fee and move on with your life. 

You will almost always have to call the provider to cancel your service. They don’t make it easy by providing online options. In addition, once you’ve canceled, you must return any equipment you’ve rented from them, like cable boxes. Usually, they will send a box, allowing you to pack it up and drop it off at a delivery company they’ve contracted with. 

If you don’t return their equipment, expect a surprise bill asking you to pay. Keep copies of your receipt showing you’ve returned it in case they don’t receive it and demand payment. 

When You Don’t Have a Smart TV

Most modern televisions come with Wi-Fi, allowing you to connect to your favorite streaming service easily from your home network. 

But you can still cut cable if you have an older television. 

If your television set has an HDMI connection, you can hook it up to your computer and use it as a second monitor. If not, you can buy adapters to create whichever connection you need.

How to Cut Cable Costs Without Cutting Cable

Although the best way to cut cable costs is to cut the cord altogether, some folks don’t want to give up. Can you still save money?

Yes!

Explore these five methods for saving money on cable without giving up the service. 

Cut the Premium Channels

Premium channels, like Showtime and HBO, cost a pretty penny. Stop paying for them to lower you monthly bill. 

Switch Providers

Most cable companies offer introductory rates to new customers, so you can save a lot of money by switching services at the end of your contract. 

Call and Complain

If you don’t want the hassle of switching, try calling your provider and complaining about the price hike. Tell them you’re considering switching due to the cost. Many will offer special deals to keep you as a customer. 

Opt for a Basic Plan

Basic cable is still one of the cheapest options around. The price soars when you start adding extra channels, but basic cable typically includes all the network channels and a handful of cable channels (like TBS and CNN). Each provider has a different list of “basic” cable channels, and then a “premium” list of other channels you can only get with a more expensive subscription.  

Bundle Cable & Internet

A lot of companies still offer great deals for the cable + internet bundle. Shop around and see what’s best – but don’t bundle just out of convenience. It might be cheaper to use one provider for cable, and another for internet. 

Cutting Cable a Big Change, But Worth It

Cutting cable is a massive change, but it’s worth the effort. The cost savings itself is worthwhile. You can use that extra $100 a month to fund your emergency account or fill holes in your budget. 

You may not realize it now, but it’s also freeing. We’re so used to being home on Tuesday to watch our favorite show we don’t realize how much of a hold it has over our lives. Cutting cable frees us from the routine and allows us to watch on our own terms, and that’s worth even more than the cost savings.