Is It Cheaper to Have Cable or Streaming? The Hidden Costs You Didn’t Expect!

In recent years, the question “Is it cheaper to have cable or streaming?” has become one of the most heated debates for anyone looking to save money while keeping access to their favorite TV shows and movies. There’s fierce competition with cable companies offering hundreds of channels and streaming services offering on-demand content. Is there anything cheaper in the long run? Spoiler: All of this isn’t so clear-cut. There are hidden costs when you dive deeper, and they can change things dramatically, with the cable versus streaming difference, when deep down, there are. Want to discover the true thing? Let’s break it down!

The Initial Price: Is Cable More Expensive Than Streaming?

On the surface, cable looks like the more expensive way to go. Cable providers tend to make their packages sound like they’re at $50 or more per month on packages with (surprise) more channels and more premium features. Streaming services frequently tout low monthly subscription fees starting at $10 – up to $20 – that sounds too good to be true. Sure, streaming is easy to assume is the winner here, but it’s not as cut and dry as that.

So, cable companies often offer the first year for promotional price. While these offers can appear as really huge discounts, they are often promising deals that, when the promotional period ends, the cost shoots up and customers end up with a very high bill for actually. Those who didn’t read the fine print are in for a bit of a shock, this shift.

Alternatively, if you go with streaming, you might think it’s cheaper because at first, you’ll likely end up subscribing to more than two platforms to access all the shows and movies you love. Your total monthly quickly starts to add up: Netflix, Hulu, Disney+, Amazon Prime… Whether you count it, some streaming platforms will also offer premium plans with better quality streams and multiple device access, and that’s additional costs. Is cable more expensive than streaming from the get-go, then? How you slice it depends, and it’s just the cost story beginning.

Monthly Bills Breakdown: Cable vs Streaming Costs Comparison

How does a cable vs streaming price breakdown break down after the initial price? There are often several other fees in cable bills. It’s the basic package cost, but it’s generally the tip of the iceberg. And there’s the cost of equipment rentals, premium channels, sports packages, and on-demand. But these extras will balloon that $50/month bill to $100 or more. That’s not to mention most cable providers tack on taxes and regional sports fees as well, which only adds to the price.

With streaming, you pay for the services. It will seem cheaper per month, but when you purchase a few more services, it can reach cable prices very easily. Say you’ve got Netflix ($15.49), Disney+ ($10.99), HBO Max ($15.99) and Hulu ($7.99). All of a sudden, you’re spending $50 to watch your shows and movies. Also, if you wish to have live TV streams, services like Hulu + Live TV or YouTube TV, charge around $70 + per month for live channels, not including premium on-demand services.

It’s not just the base price in the monthly bill comparison—it’s all the little pieces that make a difference. It appears cheaper upfront, but it may become a similar or maybe even higher monthly expense.

Equipment Fees: Beyond Subscriptions: What You’re Paying For

As cable goes, the biggest hidden cost is equipment rental. Most cable providers will require you to subscribe to a set-top box and DVR to access your channels and those fees can run $10 – $20 per month per box on your bill. If you have more than one TV in your house, that number adds up in a snap. And for the cost of renting a router if you’re getting cable with internet.

But equipment fees aren’t usually part of streaming (at least as famously known as it is). With most streaming services you just need a device to stream on, whether that is a smart TV, a gaming console, a phone, or even a simple Roku/Firestick. But, here’s the catch: Maybe not all devices will support 4K streaming or maybe you’d like to upgrade to a faster router handling your streaming demands. You won’t make rental fees like you would with cable, but upgrading your tech so you can support high-quality streaming could cost you more.

Additionally, you may encounter data caps according to your internet provider. Unfortunately, streaming is very data-hungry, and if you exceed your limit you’re subject to overage fees or might be forced to move to a more expensive, unlimited plan. So there’s another hidden cost that can make streaming cost more than you even expected.

Hidden Streaming Costs: Additional Extra Services That Total Up

Now, let’s talk about the sneaky side of streaming: the extras. While the basic subscription to a streaming service is cheap, what when you want more? When should I get more shows, more movies, or no ads? Just about, every streaming service has premium tiers or additional fees. As an example, Netflix has multiple pricing tiers, and if you want 4K or simultaneous streams, you’re going to need to buy the highest tier plan.

There are also some premium add-ons available on some streaming services. For example, Amazon Prime has premium channels like HBO or Starz with an extra fee on top of a Prime subscription. Watching Hulu also comes with an additional cost if you want to bundle Disney+ and/or ESPN+. Next thing you know, you’ve accumulated a whole bunch of extras that increase your total bill in unexpected ways.

You should also pay attention to live TV on a streaming platform. Affordable basic streaming services, but as soon as you add live TV (a.k.a YouTube TV or Sling) your costs spike. And then all this stuff, it’s a $70 or $80 per month investment instead of just $15 per month.

Cable vs. Streaming: The Bite Out of Your Wallet that Bundled Packages Take.

Cable companies are known for offering bundled packages—combining TV, internet, and sometimes phone services into one plan for a “discounted” rate. This can be a great deal for those who need all three, but be warned: these bundles typically are promotional offers with the expiry of a year or two sometimes their prices are hiked.

It is important when comparing bundled cable with standalone streaming services to then find out what you need and what may be a better option for you. Getting too many streaming subscriptions too can get costly compared to having a package you’re not using if you already have an internet package. Unfortunately, if you require fast internet, the cost of subscribing to high-speed internet for streaming may nullify any savings you’d intended.

But there are exceptions: Streaming services don’t have the same bundle deals that cable providers do. A good example of this is Hulu’s bundle with Disney+ and ESPN+ if you’re a fan of all three. However, that’s not the case with a streaming service, as you’ll still be paying extra money for your internet connection, and that may add up to more.

Price Hikes: How Streaming and Cable Prices Differ Over Time

When it comes to cable or streaming, price hikes are notorious. Everyone knows that cable providers love to raise prices once the initial promotional period is over. That $50 plan you could afford? One second it can be managing at $100 or less, and the next it can jump to $100 or even more after 12 months, leaving you with a much higher bill than you expected.

And just like streaming services are not immune to price increases. In recent years, Netflix, Disney+, and Hulu have all increased their prices multiple times in one short period, but they are not alone. These hikes are usually much smaller increments than cable but they all add up, particularly if you are a cable subscriber.

Remember, cable and streaming prices are fluctuating. If you choose one or the other you’ll inevitably find your costs climbing which will make sticking to a fixed budget harder.

The Final Verdict: Is It Cheaper to Have Cable or Streaming?

After putting all the hidden costs and prices together, is cheaper to have cable or streaming? Unfortunately, the answer isn’t as simple as that. If you only sign up for one or two platforms and simply stream, streaming can be cheaper. But if you start adding multiple subscriptions, a premium feature, or high-speed internet, streaming can get just as expensive as cable.

Although it may seem like cable is the pricier option at first, bundling deals and the promise of only one bill for TV, internet, and phone services combined can actually be cheaper if you only require TV, internet, and phone services.

In the end, all of that comes down to what you need and what you’re willing to suffer. Choosing to get Cable or streaming will depend on what you plan to use it for, be sure to check your bills and decide what fits you best!