Streaming vs. Cable: Which One Saves You More Money?

The ongoing battle between streaming services and cable TV just got more interesting. With streaming platforms like Netflix and Disney Plus now charging extra fees for sharing accounts, and with the rise of ad-supported plans, sports add-ons, and yearly price hikes, consumers are left grappling with the question: Which is the better deal — streaming or cable?

You might be someone who has fully embraced streaming and forgotten what the old cable bills looked like, or maybe you’ve stuck with your cable or satellite provider because you’ve become accustomed to your bundle deal. Either way, are you truly getting the best value for your money?

Breaking Down the Costs

Let’s start by looking at the price breakdown for both options — cable vs. streaming vs. live TV streaming. Cable TV, as we know, often comes with bundles, contracts, and hidden fees that can add up quickly. Meanwhile, streaming services offer more flexibility but can quickly get expensive if you’re subscribing to multiple services.

According to a 2023 report from Leichtman Research Group, 83% of U.S. households have at least one streaming service, and more than half subscribe to four or more platforms. But that doesn’t necessarily mean streaming is always the cheaper option.

Average Monthly Costs:

ServiceAverage Monthly Cost
Basic cable + internet$144
Premium cable + internet$217
Basic streaming (with ads, no internet)$33
Premium streaming (no ads, no internet)$71
Live TV streaming + internet$135

Note: Cable costs are averages from six major U.S. cities, streaming from four services, and live TV streaming from five services.

Cable Costs Breakdown

Cable TV pricing varies depending on where you live, with service costs differing from city to city. However, the general trend is clear: cable remains pricey, and when you add on taxes, fees, equipment rentals, and optional packages (like sports networks), it only gets more expensive.

For example, in cities like Kansas or Michigan, you might see basic cable packages cost around $125–$160, but this doesn’t include additional fees like those for DVRs or sports channels, which can add up to $50 extra per month. As a result, a basic cable and internet plan could cost you anywhere from $144 to $217, depending on where you live and the plan you select.

Streaming Only: The Cheapest Option?

If you want to avoid live TV and enjoy on-demand streaming content, the cheapest option is streaming services. For example, you can get access to Netflix, Disney Plus, Max, and Hulu at a fraction of the cost of a traditional cable subscription.

Here’s a quick look at how much you’ll pay for the basics:

ServiceBasic (with ads)Premium (ad-free)
Netflix$7$15.50-$23
Hulu$8$18
Disney Plus$8$14
Max$10$16-$20

If you opt for the basic versions of all four major streaming platforms, it will cost you around $33 per month. Add in the cost of internet (averaging $70 per month), and you’re looking at roughly $97 per month — substantially cheaper than the $144 you’d pay for basic cable and internet. This is a savings of at least $44 a month.

Want Live TV? Streaming Still Wins

If you’re someone who enjoys traditional cable TV programming but wants to ditch the costly contracts and extra fees, live TV streaming services are a great alternative. Platforms like Sling TV, YouTube TV, Hulu Plus Live TV, and DirecTV Stream offer live channels with sports, news, and shows, but without the hefty price tag of traditional cable.

Here’s how the costs stack up:

ServiceInternetBasic TV PackageTotal (Live TV + Internet)
Average Cable$70$74$144
Philo$70$25$95
Sling TV$70$40$110
YouTube TV$70$73$143
Hulu Plus Live TV$70$77$147
DirecTV Stream$70$109$179

As you can see, live TV streaming services like Sling TV or Philo offer a much cheaper alternative compared to basic cable TV packages. While YouTube TV and Hulu Plus Live TV come in at around the same cost as cable, services like Sling TV and Philo offer great value for viewers on a budget.

Sports Fans: Cable Might Still Be Your Best Bet

While streaming services have made it easier to access content from nearly every genre, they still struggle to offer the breadth of sports channels available on cable. If you’re a sports fan who needs local networks for NBA, NHL, or MLB games, cable may still be the best option.

DirecTV Stream is one of the few streaming services that offers regional sports networks (RSNs), but it comes at a high cost — typically $109 per month for the package that includes RSNs. Since many streaming services lack access to these networks, it could be more affordable and convenient to stick with cable if you need access to live sports content.

The Pros of Cable TV

  • Live sports and local news: If these are crucial for you, cable TV offers full access to these channels without needing to jump through hoops.
  • Bundling discounts: Many cable providers offer discounts when you bundle internet, TV, and phone services together.
  • No need for extra equipment: With cable, you get everything you need included in the box, without worrying about streaming devices or tech support.

The Pros of Streaming Services

  • No hidden fees: Streaming services are straightforward in terms of pricing, with no surprise taxes, equipment rental fees, or service charges.
  • Flexibility: You can subscribe month-to-month without worrying about long contracts or cancellation penalties.
  • On-demand content: Most streaming services offer a vast library of movies and TV shows that you can watch whenever you like.
  • Commercial-free options: Many premium services, like Netflix and Hulu (with ad-free plans), let you skip commercials entirely.

Which is Best for You?

If you’re looking to save money, the simplest option is to ditch cable and just subscribe to streaming services like Netflix, Hulu, or Disney Plus while paying for a basic internet plan. This setup typically costs around $97 per month, which is far less than what you’d pay for cable.

If you need live TV, services like Sling TV or Philo offer a great alternative at a much lower cost than traditional cable. However, if you’re a sports fanatic and need access to local games, you may find that cable TV — especially with services like DirecTV Stream — is the best fit for your needs.

In the end, the decision depends on what you value most — whether it’s convenience, cost, or access to live events like sports. With the right combination of streaming and internet, it’s possible to save money while still getting the TV experience you love.