Not really apples to apples though. One difference is that these streaming services are now creating their own content which causes buyers to get that service just for the unique content. That wasn't the case with Cable 5-10 years ago.
Secondly, if it is 1 person in a household is watching, then sure, you can cut back some, but if it's a family, good luck. My wife would not give up HGTV, Discovery, Hallmark and I couldn't care less about any of those. I like ESPN/ESPN+ and she couldn't care less about that. A few years ago, my kids absolutely wanted Disney+
Netflix Standard Cost: $15.49
Hulu/Disney/ESPN+: $15 (with ads)
AMC+ $9 (for Walking Dead))
Discovery+: $5
Paramount: $8
Peacock: $8
Now if you want to watch Ted Lasso, add another $11. And if you aren't in an area where you get a lot of channels over the air and you want Fox, CNN, MSNBC, Weather channel, etc... you'll need to go with something like SlingTV, which is another $40 (which negates some of the ones above).
Hulu + TV and Youtube TV cost the same amount as Spectrum TV (although you can get a bundle deal with Spectrum).
I don't agree that you need to "Oversubscribe" to cost as much as cable for everyone. For some people, sure. For others it really depends on the number of people in a family and what's important to them.
Part of it is that maybe we’ve forgotten how ridiculously awful the price model of cable got right before streaming took off.
Back in 2008, the average cost of basic cable was $50 (
source) and by 2015 that ballooned to $69 (
source).
In 2024 dollars, that’s $73 increasing to $101 over the course of seven years. For
basic cable.
Services like Sling, Hulu+, YouTubeTV are pretty much the same thing as basic cable. They cost $40-$76 for a base plan.
So take your (let’s call it on average) $60 for the equivalent of basic cable, which is already 40% cheaper than what you were spending before. Add on “premium channels” — Netflix, Max, Paramount, etc as listed above. If you buy the entire list, you’re in for another $60 a month.
So that’s $120 for basic + premiums. What did the equivalent cost before? Obviously a complicated question because of how tiers were designed, but
this reddit thread has it around $200 for a typical multi-tier plan
without actual premiums like HBO.
So as far as I can see, virtually everyone is saving about 40% off the equivalent of cable.
And there are exacerbating factors as well:
- Cable companies typically charged for equipment, which also meant charging for replacement of old equipment, and this could run into the hundreds of dollars for a household.
- Cable companies would physically damage your house for installation. I want to cry when I see original hardwood flooring with cable holes drilled through the boards.
- As we all remember, cable prices were a shell game that required you to call and threaten to disconnect in order to get better prices. This was an insane customer service model, but as monopolies they got away with it for decades. A lot of people were out there spending $300+ a month because they wanted a single top-tier channel and weren’t the sort of person to haggle on the phone.
- In order to get a decent price, cable companies required you to bundle services to get products you didn’t want at all. How many of us bought a landline phone just to cut our TV bill, or bought a tier with 8 Hallmark channels in order to be eligible for the
next tier which included sports?
- To that point, cable companies deliberately loaded their tiers with junk channels that nobody watched. The equivalent of those channels now cost
nothing, they’re free on services like OrbiTV. Want to watch Gunsmoke reruns 24/7 until your eyes pop out? It’s free!
- Streaming services are often given away for free as a benefit of other products. I get HBO/Max for free* with my phone plan. I get Amazon Video for free* with my Amazon Prime account. Whereas I used to pay over $100 a year just for HBO alone.
- Most importantly, you can turn streaming services on and off at will. If all you want is to binge the latest season of Ted Lasso, it’ll cost you $11 for the month. If you wanted the same thing on the old cable model, you were locked into a year contract for thousands of dollars with a termination penalty.
* yes I get how this technically works
I hear you on the results being dependent on the household and their specific dynamic, that’s true. But I can’t see how anyone could be spending as much on
equivalent products as they were before, and certainly not if we’re factoring for inflation.