Every time there is any talk of a streaming service increasing their price, we see a flood of comments about how cord cutting will soon cost as much as cable TV. Or you will hear from people who went back to cable because of a $1 Netflix price hike.
Will cord cutting cost as much as cable TV soon? Well, some streaming services did increase their cost by $1 to $5 a month depending on the service; however, cable TV also increased their prices. This year Spectrum raised their rates by $11.35 a month (with a second price hike coming soon), and Comcast raised their price by $7.75 a month this year. Let us not forget that the fees and taxes on cable TV can add up to over $60 a month.
According to Consumer Reports, cable TV core package fees went up 3 to 4 percent in 2018 along with new and higher fees on things like device rentals and broadcast TV. For example, Comcast raised their core package fees about $5 a month but also raised their broadcast fee from $1 to $8 a month and the regional sports fee was up as much as $1.75 a month. Missed payment fees went up to $10.
The truth is nothing can stay the same price forever. Yet cord cutting’s price is growing at a fraction of the rate that cable TV’s is. The best part is with cord cutting there is no contract, so you can cancel at any time. If your price goes up with cable, you are stuck until your contract ends or you pay an early termination fee.
There is one other factor pushing down the cost of streaming. Competition, which is something cable TV has not had to deal with traditionally. Right now, there are eight major live TV streaming services and countless smaller services. In total, there are over 100 streaming services compared to just a handful of traditional pay TV providers in any market.
So, will cord cutting cost as much as cable TV? Honestly, no, but it won’t always be the same price it is today. Cord cutting is still in the early days. As we grow and develop there will be price hikes just as there are on milk and bread.
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