With Prices Rising Everywhere, is Streaming or Cable More Cost Effective?

It’s an unfortunate fact of life that prices for goods and services only ever go in one direction: up. Fubo was the latest streaming provider to make this clear, as the service announced it was raising prices on all of its live TV streaming plans earlier this week.

Fubo is not alone, however. Nearly all of the top subscription video-on-demand (SVOD) and live TV streaming services on the market have raised prices in the past year, some of them multiple times. In such conditions, it can be hard for consumers who are thinking about cutting the cord to know what’s actually best for their budget: live TV through cable or satellite, or via streaming services like DIRECTV STREAM, Sling TV and others.

Keep in mind as you read through this guide, that prices and channel availability can vary widely by area. Your channel needs and the pay-TV companies available in your specific area will play a big part in your ultimate selection! The Streamable has been following the pay-TV market for the past seven years, so you can trust you’ll get the most up-to-date and accurate information from our team of experts.

Live TV Streaming Costs

Are There Hidden Fees with Live TV Streaming?

For the most part, users of live TV streaming services don’t see the same fee structure as cable and satellite subscribers. There are no advanced receivership fees associated with live TV streaming, though Fubo charges a regional sports network (RSN) fee of $10.99 per month for subscribers who get one RSN in their area or $13.99 for those who get two or more.

Taxes are another matter. Users in 30+ states will note that their live TV streaming plan is accompanied by sales tax every month, and some big cities (such as Chicago) add more tax to streaming platforms specifically. Still, the biggest “hidden fee” associated with live TV streaming isn’t really hidden; it’s the fact that users need a broadband internet subscription to get live TV streaming.

Internet Service Provider Costs

One of the advantages that traditional cable and satellite plans have over live TV streaming is that such plans usually don’t require the customer to have an internet connection to watch TV. Internet plans are rarely available for less than $40 per month and can end up costing double that amount for higher speeds.

Bigger-name internet service providers include Comcast, Spectrum, AT&T, T-Mobile, Verizon, and others. When shopping for an ISP, you’ll want to make sure your download speeds are commensurate with your needs.

The flip side of the advantage that cable enjoys by not requiring an internet subscription is that in 2024, most people see the internet as a must-have utility, not an optional part of their entertainment budget. However, some providers allow users to bundle their cable plans with internet options for a lower price.

Cable TV Costs

Cable and satellite often include hidden fees that users won’t find in live TV streaming. Consumer Reports found in 2019 that the average cable customer faces nearly $500 per year in fees, and inflation has assuredly driven that amount even higher.

Equipment rental fees and regional sports network fees can add up fast for cable and satellite owners, and it only takes a few fees to raise the price of your monthly bill by 20% or more. CableTV.com found in February 2023 that the average monthly cable bill was around $83, putting it on par with live TV streaming.

As mentioned, some providers allow users to bundle internet and TV together. This is where customers can find real value; Spectrum offers a TV and internet bundle for as little as $65 per month, and most bundles will cost between $75-$120 monthly.

How to Decide

Predictably, The Streamable’s expert opinion is that streaming is a better option for most customers than cable. That won’t be true for everyone, however, and there are some important factors to consider before making your final choice.

Price Sensitivity: Streaming

Streaming wins here because of the variety of packages available. Providers like Sling TV and Philo are perfect for those who don’t need every cable channel under the sun, and both offer plans for $40 or less monthly.

There’s also no fee for canceling a live TV subscription. Cable and satellite plans lock users into long-term commitments, often accompanied by a big price increase after the first year of service. They also charge hundreds of dollars for customers who want to cancel before their contract is up.

Another factor in streaming to consider is the number of free streaming services like Tubi, Pluto TV, and The Roku Channel do a great job of mimicking traditional pay TV, and some customers may find they have all the content they need without paying $75 per month or more.

Even with bundles of TV and internet plans that offer bargain-basement prices, we still think streaming is the most cost-effective way to get live TV channels. It doesn’t include the long-term contracts or hidden fees associated with cable, so there are fewer nasty surprises associated.

Channel Flexibility: Streaming

Cable and satellite plans usually have big channel lineups, but as you browse different cable and satellite plans from different companies you’ll note that the equivalent tiers from each company are quite similar.

Streaming, on the other hand, gives users the power to really customize what they want. Most offer channel add-on packs to supplement your subscription without having to upgrade to a higher plan and pay for channels you don’t want. Check out The Streamable’s Service Matchmaker to see how you can customize your channels on the service of your choice.

Surround Sound: Cable

Most cable providers include the surround sound option while streaming services usually don’t. Even if a live TV provider does give users the option to watch with surround sound, additional devices are often needed. This is one area where cable has a clear advantage, for now.

4K Streaming: Push

While live TV streaming services are more likely to offer 4K streaming without an extra fee, there’s simply not that much 4K content on the airwaves right now. Fox offers some sporting events in 4K, but those are available on the Fox Sports app. NBC does likewise, but other than that there just isn’t enough available to give the advantage to cable or streaming.

Regional Sports: Depends

Many cable plans force subscribers to watch — and pay for — regional sports networks regardless of whether the viewer wants them or not. That makes them easier to access with cable, but live TV streamers like DIRECTV STREAM and Fubo provide them too.

Those living in an area with teams covered by a Bally Sports RSN can watch them on Bally Sports+ if they wish, and streamers like NBA League Pass and MLB.TV allow out-of-market fans to watch their favorite teams much more easily than a cable subscription would.

Ease of Use: Streaming

If you want to sign up for a new live TV streaming service, all you have to do is visit its website and subscribe. There’s no equipment installation, no waiting for a cable box to arrive, and no 1-800 number to call when you want to cancel your subscription.

The Bottom Line

Although there are times when a cable or satellite plan does make more sense for users, we can’t escape the conclusion that most people would be best served with a live TV streaming service.

Cable carries more fees, longer contracts, and less flexibility than streaming. It’s less customizable, and unless you need a sprawling channel count of more than 200 options, you’ll find that streaming is cheaper than cable, in some cases considerably.

Consumers will find that there’s something for everyone in the live TV streaming market. Philo and Sling are great for bargain hunters who watch a little less TV. Hulu + Live TV is amazing for customers who want to combine live TV and on-demand, as the Disney Bundle comes included in the price. DIRECTV STREAM and Fubo have enormous channel selections and tons of live sports. YouTube TV comes with one of the most user-friendly live guides of any service, traditional or streaming.

That power of choice stands out all the more when considering that in some areas, there are only one or two cable providers to pick from. Not being locked into a long-term contract is also hugely important, as it gives you complete control over your entertainment options and your wallet at the same time. If you’re even considering cutting the cord and moving away from cable, we think you’ll enjoy live TV streaming quite a bit more.