Yesterday Apple announced that Apple TV+ would be $4.99 a month or free for the first year if you buy a new Apple product. As you would expect, many cable TV advocates have jumped on the idea that this, combined with subscriptions to other streaming services, now makes cord cutting add up to more than the cost of cable TV.
One of the tweets that kicked off this fire strom of tweets about how cord cutting costs more than cable TV comes from Jon Erlichman a morning anchor of BBN Bloomberg along with a host over at CTV. Mr. Erlichman listed nine streaming services and points out how they cost $90.91 per month.
Here are the services and prices he included:
- HBO Now $14.99
- Netflix $12.99
- Hulu $11.99
- Showtime $10.99
- CBS All Access $9.99
- Amazon Prime $8.99
- Starz $8.99
- Disney+ $6.99
- AppleTV+ $4.99
Total: $90.91 a month.
It’s no surprise this has lead to a firestorm on twitter pushing the idea that cable TV is now cheaper than cord cutting. (Including tweets from people who work for cable channels like Comedy Central.) But many of these attacks once again just show how cord cutting is cheaper. So lets break down how this argument that $90.91 a month for cord cutting costs more than cable TV.
Average Cost of Cable TV is $107 a Month Just For TV
According to Fortune, the average cost of cable TV for TV only was $107 a month in 2018. That means even if you get all of the streaming services listed above you will still be saving $16.09 a month.
Most Cord Cutters Subscribe to 4 or Fewer Services
Multiple studies have recently come out to show that most cord cutters subscribe to 4 or fewer streaming services. A recent survey of over 3,000 of our readers shows that over 90% pay for 4 or few services. Over 72% of our readers pay for 3 or fewer TV services. So this idea that cord cutters are paying for 9 services is not a typical cord cutting experience.
Most Cord Cutters Plan to Drop a Service When They Add a New Service
A recent new study showed that most Americans who planned to get Disney+ would drop a streaming service to keep costs low.
HBO, Showtime, and Starz Cost Extra With Cable TV
The average cable TV bill now costs $107 a month but things like HBO, Showtime, and Starz are extra. So you can’t count HBO, Showtime, and Starz as a cord cutting expense as you would also have to pay for these channels with cable TV.
You Can’t Get This Content With Cable TV
The truth is many of the most popular shows right now are just not on cable TV. The Handmaid’s Tale, Stranger Things, Orange is The New Black, and more are all award-winning shows you can’t get with cable TV. Much of the most popular programming on Disney+ and CBS All Access is content that does not air on CBS or The Disney Channel. This is why most cable TV subscribers also pay for a streaming service.
So next time you see someone arguing how cord cutting costs more than cable TV, remember to remind them of these simple facts. Cord cutting still may not be for everyone, but the idea that you can’t save money with cord cutting just does not add up.