Why I want to quit cable
Growing up, most of my friends had cable television, but whenever I brought it up, my parents would always say that I watched enough TV already (which was true). So it was always a treat when we went somewhere like a hotel, where there were more than five channels. I didn't know what any of the shows were, but it sure was fun pressing buttons on the remote. Today, I still don't know what most of the shows are, but the novelty is gone.
Nowadays, I have different choices (and priorities). I can entertain myself online, and services like Netflix and Hulu make that easier. When I do turn on the TV, it's often just for background noise as I cook dinner or do something on the computer.
I almost never watch shows when they actually come on, and I only know the schedules of a few of them. And nowadays, the gift of choice feels more like a waste, as I flip through sixty something channels and see nothing that I want to watch.
The other day I thought to myself, "I'm paying forty bucks per month to watch Groundhog Day. Again." But then I looked at the cable bill that I had not looked at in a year, since it's on auto-pay. I'm paying $64.99 for digital cable from Comcast, plus $15.95 for HD and DVR, and then there's about $5 in taxes and fees. The introductory price ran out long ago.
I could buy an obscene number of tacos from Jack in the Box with that cash.
So I looked into cutting the cord completely. I want to save money, but more importantly, I want to get more of what I want for my money. Toss the channels and shows I don't watch.
At $85.91 per month for the most basic HD plan from Comcast, that comes in at just over a grand per year. With Netflix and Hulu, it's $15.98 per month, or just under $200 per year. That's a big gap between Comcast and Hulu+Netflix. $839.16, to be exact, which is quite a buffer.
Of course you need a device if you don't already have one to play Netflix and Hulu on your television. A Roku costs between $50 and $100, and an Apple TV is about $100. Current difference: $739.16.
Also, you don't get all you want with just Hulu and Netflix. Personally, I watch basketball when good games are on. The NBA League Pass lets you watch (more) games over broadband though, on a Roku or Apple TV. That's $109 for the season. But, and it's a big one, in-market and nationally broadcast games aren't available via the League Pass. More on this to follow. Current difference: $630.16.
Then to get local channels, you can still use an antenna. The bestselling antenna on Amazon is $35.99. Current difference: $594.17.
Finally, that leaves a healthy amount to buy and rent shows and movies not available on Hulu or Netflix, which you can get on iTunes and Amazon Instant. For example, the pass for this season's How I Met Your Mother is $26.47. You could buy (and own) 22 full seasons of your favorite shows with the available buffer. I'm pretty patient though and don't mind waiting for stuff to become available on Netflix. I just need to be able to watch sports live. My wife has been really into Downton Abbey, and the season pass is $17.04. It's free on PBS, but she usually can't watch it when it airs. Current difference: $577.13.
After all the additional stuff, that's $577.13. Over 1,000 tacos.
But back to the basketball problem. Since League Pass doesn't get me nationally broadcast games, that means I wouldn't get most of the playoffs on ESPN and TNT. (I suspect the same for hockey, baseball, and football.) That's the most important part of the season, save the finals, which are broadcast on ABC. And my wife really likes HGTV and a handful of reality shows that aren't available on Roku, Apple TV, iTunes, or Amazon. Crud.
By the numbers and tacos, it makes sense to cut the cord. From a perspective of want though, it's harder to let go. It comes down to this: Is a year of a tiny subset of programming on cable and playoff games not available on ABC worth $577.13?
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52 Comments (Add Yours)
Hi Nathan,
I just moved to the US and didn’t understand how Comcast could charge so much for the tv bit (+forcing you into a 2-year plan). So I just got internet from them (only provider in my building) and then stream everything.
Nice graph to show the cost!
Tore
Tore, are you able to get the basic channels on your tv? Have you tried connecting the cable from the internet to your tv ?
I think you should definitely cut the cord; how can you not, after looking at that graph? I don’t have cable. I just watch my TV on Hulu (the free stuff) and Netflix (7.99/month). For sporting events I have an antenna. If there are sporting events that I want to watch but aren’t available online or on local channels, I go to a sports bar. It is a good reason to round up some friends and enjoy some wings and beer. Downton Abbey streams on Netflix. She would have to be a season behind though. As for HGTV and NBA games, that stuff just rots your brain so you’re better off without it ;)!
Downton Abbey also streams on pbs.org the night it airs on PBS.
Your numbers are slightly off because the AppleTV(Roku) / Antenna combo are sunk while leasing your DVR is a recurring cost. Obviously you have to pay the costs in year 1 and sometime down the road when it comes time to upgrade.
Also, why did you break your graph into 5 months? Did I miss something in the article or was it simply to show the the break even point of your cord cutting option?
I’ve recently done the same thing (and have a buddy or sports bar for most of my OTA sports needs). But don’t forget that you still have to pay for the bandwidth to receive the 1′s and 0′s. The ISP monthly charge may still be cheaper overall, but it is an associated cost for the alternative plan.
Back when I had Comcast, they offered basic cable for $15/month, and a $15/month discount when you subscribed to both cable and internet through them. Basic cable was local stations plus TBS, CNN Headline and some shopping channels. They don’t normally advertise this plan; you either have to ask or threaten to switch to a competitor for both services.
On costs, the investment costs need to be amortized over the life of the product, so instead of $100/year it’s more like $33/year.
We ditched cable a couple years ago in favor of Netflix, but when they upped the cost recently we ditched them too. Instead we now use the local library. I can get the TV shows on DVD from them for free and use the free Hulu.
For an antenna: Most can use a piece of wire stuck in the Coax connector in the back of the set. No need for fancy antennas, most are snake oil anyways.
As for the box, you can get an RCA unit for about $40. Netflix, Youtube, and Hulu(?). Or, wait until your DVD player craps out, buy a BluRay player. Most of them have Netflix, Hulu, and a few other services built in.
Or, just use your console as your box. Most all of them can do Netflix and YouTube. I think PS3 can do Hulu.
The fancy antennas aren’t snake oil. You get HD channels over them now… HD quality. It’s digital, no snow, or standing in the right spot. Although… it’s either there or not.
You can do the same with a length of wire jammed into the coax connector on your TV, by and large.
For the cost of a few beers and maybe some wings, you could probably watch the playoff games not available through the non-cable options. There are plenty of sports bars in my area, or just regular bars with a TV tuned to sports. Or, if you have a buddy that likes to watch the games, you could plan to go over to their house to watch. Make sure you bring the tacos.
This exactly what we did when we cut the cable: we dropped $30 a month (half the savings) in a jar and then if we intentionally wanted to watch something, grabbed money out of the jar and headed to the sports bar.
regarding ESPN. make sure that your internet provider has ESPN 3.
Great analysis. One question, why can’t you watch the nationally televised basketball games on ABC over the air?
I think he meant the ones on TNT and ESPN
Only the finals are broadcast on ABC. The rest of the playoffs are on ESPN and TNT.
just posted some comments about our experience with quitting cable here: www.russpoldrack.org/20.....cable.html
My main problem with cutting the cable was lack of Discovery, Science, and HBO. None of that content was available to me without cable, and I went into withdrawal.
I really wish there was an a la carte option. I couldn’t give two hoots over MTV, CNN, et. al. Just give me some Discovery channel and Science channel please!
Cable companies can’t do a la carte. If they did, they wouldn’t be able to sell stations to evangelical right-wing outlets; because nobody would order them.
Check out Redux for your science fix.
I cancelled HBO a couple of months ago. Watching a season in bulk is fun.
Nice chart, but you leave out the cost of internet access. I assume it’s not free, unless you’re surfing on someone else’s wi-fi. For me, it’s been about $50-60 a month, once the introductory rate wears out, paid to the local cable company. That brings Hulu/Netflix up to $75 a month.
Good catch. This was the stumbling block for me in my drop/don’t drop cable TV. If I considered my internet as a must have, the way bundling worked my cable television and phone service was $19/month on top of the required internet. It is harder to play the Hulu/Netflix card knowing that price difference.
I would pay for internet regardless of whether I cut the cable or not so lumping the Internet cost in is irrelevant. I can live without cable. I can’t live without the interwebz.
What I was saying is that my internet is $79/month if I get the same level of service without being bundled. My bundled internet, phone, and cable comes in at $98/month. So….cable and phone costs me $19/month as I see it.
It’s not really relevant data though. He’ll be paying for the internet whether he cancels his cable or not.
And, generally, there is a package deal of sorts, which drops the price of cable substantially. Closer to 20 or 25 US per month for cable access.
Still a bit higher than Netflix and Hulu+ combined.
I’m going to pay for internet regardless, so I didn’t include it.
When you bundle you save a huge %50 on the numbers. You need to include bundled costs.
“And my wife really likes HGTV and a handful of reality shows that aren’t available on Roku, Apple TV, iTunes, or Amazon. Crud.” same here , now I pay for netflix (Bluray), Vonage, triple play Verizon. I feel completely mugged by these corporates.