It’s incredible how many people are dropping cable and, to be honest, I envy them for doing so. Out of the 80 people I polled on Twitter, 70% have cut the cord on cable. Now that we are living on one income, I find myself scrutinizing our expenses more and more, but I still can’t get myself to bite the bullet on replacing cable for a few reasons.
One, we have a package deal for cable, internet and phone line (our alarm system requires a house phone). Cable makes up 60% of the total bill, but the bundled deal comes with bundle pricing which brings down the cost of each. Another reason is for access to local sports and news. Lastly, we have a few shows that we enjoy on both HBO and Showtime, which usually come at a premium.
We are fortunate enough to share a Netflix account with my family, therefore that is currently at no charge to us. We also are currently receiving Disney+ for free for one year. However, we would need to couple a few different streaming packages to get similar access to what we have for cable. So, will cutting cable really save that much money?
Below is a breakdown of our current costs versus what we would pay if we pulled the plug on cable. We currently have Verizon Fios, so in order to keep some consistency, I used Verizon pricing for internet and phone in my hypothetical calculations.
Current Cost for Cable and Subscriptions
Our total bill each month is $165, making the cable portion $105
Cost for bundle per year: $1,980
Cost of using just Netflix and Disney+ per year (for now): $0
Disney+ going forward: $6.99 x 12 = $84
Total cost per year: $2,064
Costs for What Would be Needed If We Cut Cable
Hulu Live: $54.99
Showtime: $10.99 with Hulu Live
HBO: $14.99 with Hulu Live
Cost of subscription services: $88 x 12 = $1,056
Internet + phone bundle: $79.99 x 12 = $960
Total cost per year: $2,016
According to these calculations, we would only save $48 per year, or $3 per month, by getting rid of cable. If we take internet and phone out of the equation, the savings are way more significant. Without the internet and phone bundle and adding in Disney+ we’re paying $1,344 per year versus $1,056 per year for just viewing purposes. That would be a savings of $288 per year, or $24 per month. While that is certainly a more significant number, the fact remains that we would still need internet and phone and the bundled pricing does bring that cost down a considerable amount. I’m sure we could find a lower cost provider, as well, but I still cannot see the savings being substantial enough to outweigh the convenience of our one bill and easy access to everything we want to watch.
I’d love to hear your thoughts and experiences with pulling the plug on cable! Also, please let me know if you see any flaws in my calculations or significant savings that I am just not seeing. Maybe someone can convince me the switch is worth it 😉.