Streaming vs. Cable TV: Which Is Best for You?

Cord-cutting has become increasingly popular thanks to the rise of streaming services. For those unfamiliar, “cord-cutting” refers to canceling your cable subscription and relying on streaming platforms, such as Netflix and Hulu, to watch your favorite shows and movies. The primary difference is that you can select your streaming services à la carte, while cable locks you into a set number of channels through bundles. The big question is: Should you cut the cord? In this guide, we’ll compare streaming versus cable TV, exploring everything from costs to content options so you can make an informed decision.

Overview of Streaming vs. Cable TV

1. How Does Cord-Cutting Work?
2. Streaming vs. Cable TV: What’s the Difference?
3. How to Watch Live TV
4. How to Choose Streaming Services
5. What Equipment Is Needed for Streaming?
6. Is Cord-Cutting the Cheaper Option?

How Does Cord-Cutting Work?

Cord-cutting has been on the rise in the U.S., with over 35 percent of households cutting the cord as of the end of 2023. The trend is expected to grow, with projections indicating that cord-cutting will account for more than half of all TV subscriptions.

In practice, after you cancel your cable TV plan, you’ll need to sign up for a few different streaming services to get the same amount of content you would from cable. Cord-cutting requires subscribing to services such as Netflix, Hulu, Disney+, and other streaming services. When choosing subscriptions, compare content offerings, prices, and premium features to ensure the best value for your needs.

Streaming vs. Cable TV: What’s the Difference?

The key difference between streaming and cable TV is in how content is delivered and consumed. Cable TV provides programming through a physical cable connection, offering a set lineup of channels with scheduled shows and broadcasts. You typically have little control over what you can watch at any given time unless you use DVR. Cable packages often bundle together many channels, including ones you may not be interested in, and usually require equipment such as cable boxes to access content.

Streaming services deliver content over the internet, allowing you to watch shows and movies on demand. Instead of a fixed channel lineup, you can choose from vast libraries of content at any time, often without commercials or with the option to skip ads for an additional fee.

Streaming offers greater flexibility, because you can access content from multiple devices — smart TVs, phones, tablets — without the need for physical infrastructure like a cable box.

Some cable TV services, however, have included app availability to watch content to increase cable’s flexibility. Xfinity and Spectrum cable TV subscribers have access to a dedicated app to stream cable content, watch on demand, and access DVR recordings. If you like the convenience of streaming, you may not need to get rid of cable if you’re happy with the service or enjoy the incentive of bundling your cable and phone.

It’s worth noting that cable users who enjoy traditional channels can opt for a streaming service similar to cable. Services such as Hulu + Live TV, YouTube TV, and Philo feature traditional cable formats without a cable subscription.

How to Watch Live TV

If you like the style of traditional cable but you’re looking for more affordable streaming options, there are live TV streaming services available. The services operate similarly to cable, where you can access your favorite channels on a regular TV schedule. You also have DVR capabilities and the option to watch on-demand content.

Opting for a live TV streaming service can be a great segue into streaming so you’re not diving headfirst into something completely new. In addition to paid live TV options, there are also free options. The free options don’t feature the same channels as traditional cable, but the format is the same, with dedicated channels for specific types of content.

When searching for a service, figure out which channels you most want to watch. Compare services that provide those channels and any associated costs. Sling TV features á la carte pricing, for example, so you may need to choose specific bundles with your plan, which can add up. Determine which features you need, such as DVR, and how much storage is included. If you’re a sports fan, look for a service that offers the sports you want to watch.

How to Choose Streaming Services

Choosing the right streaming service depends on your viewing preferences, budget, and the type of content you enjoy. Start by evaluating which shows, movies, or genres you watch most frequently. If you enjoy original content, for instance, Netflix and Hulu offer a wide range of exclusive series and films, while Disney+ is ideal for fans of Marvel, Star Wars, and family-friendly programming. If you’re into more niche content, services such as Max, Apple TV+, and Prime Video may cater better to your interests. Consider whether live TV or sports are important, in which case live TV services such as YouTube TV and fuboTV may be more suitable.

Cost is another factor when deciding on a streaming service. Many platforms offer different subscription tiers based on features such as ad-free viewing or access to exclusive content. Some services, such as Amazon Prime Video, are bundled with other perks (such as free shipping on Amazon), which could offer better value. It’s also a good idea to check whether any free trials or bundled offers are available, because it can help you explore options without immediate commitment.

What Equipment Is Needed for Streaming?

Cable equipment is often bulky and requires professional installation, but streaming devices are compact and easy to set up. Connect the device wirelessly to the internet for a more flexible and portable way to watch content. Many streaming services can be accessed directly through apps on smart TVs, eliminating the need for additional hardware.

Before you cut the cord, you’ll need to know what equipment is required to ensure you get the best streaming experience.

Reliable Internet Connection

Video content requires a significant amount of data and bandwidth to ensure smooth playback without interruptions. Streaming services such as Netflix, Hulu, and Disney+ offer content in high definition (HD) and even 4K resolution, which demands faster internet speeds and higher bandwidth to avoid buffering or lagging. If your internet connection is slow or unstable, you may experience poor video quality, frequent pauses for buffering, or long load times.

To prevent those issues, choose an internet plan that provides adequate speeds and a high or unlimited data cap. Streaming can quickly eat through data, especially when multiple devices are connected or if you’re streaming in HD or 4K. Many internet service providers (ISPs) implement soft data caps, which means that once you exceed a certain amount of data usage, your connection speeds may be throttled, causing slower downloads and lower-quality video streams.

Opting for an ISP with no data caps, such as Spectrum, can ensure a consistent, high-quality streaming experience, particularly for households with multiple users or heavy data consumption from activities such as gaming, video calls, and streaming on multiple devices.

Modem and Wi-Fi Router

A modem and router manage the flow of data between your internet connection and the devices you use to watch content. The modem is responsible for bringing the internet signal from your provider into your home, while the router distributes that signal wirelessly to your devices, such as smart TVs, streaming devices, smartphones, and tablets. Since streaming video content requires high bandwidth, especially if multiple devices are streaming simultaneously, having a modem and router that can handle the demands of modern internet usage is essential.

Most streaming devices, such as Roku and Amazon Fire TV, don’t have Ethernet ports, which means they rely entirely on your Wi-Fi network to access content. If your Wi-Fi router isn’t capable of supporting high speeds or a large number of devices, you may experience buffering, lag, and drops in video quality. Older or lower-end routers often struggle to keep up with the bandwidth demands of HD or 4K streaming, especially if other activities, such as online gaming and video conferencing, are happening simultaneously.

To avoid constant interruptions and improve your streaming experience, invest in a high-quality router with a strong range, dual-band capabilities, and the ability to prioritize streaming traffic. That ensures smooth, uninterrupted viewing, even in households with multiple users or devices connected to the network. You may need to extend your Wi-Fi with an extender or mesh network system.

Streaming Devices

Streaming devices such as Roku, Amazon Fire TV, and Apple TV are essential for accessing a wide variety of streaming services directly on your TV. The devices act as a bridge between your internet connection and your TV, allowing you to stream content from platforms such as Netflix, Hulu, Disney+, and many more. They offer an easy, user-friendly interface that brings together multiple streaming services in one place, making it simple to search for and watch your favorite shows and movies. The devices often provide smoother navigation and faster performance, ensuring a seamless viewing experience that enhances the convenience and versatility of streaming.

Some smart TVs come with streaming apps preinstalled, but not all of them support every app or service you may want to use. Smart TVs can have limitations in terms of available apps, performance, and software updates, which can restrict your viewing options over time.

Streaming devices, on the other hand, offer a broader selection of apps, frequent updates, and enhanced features such as voice control, search functions across multiple platforms, and better integration with other smart-home devices. Before choosing a device, verify that it supports the streaming services you plan to use, especially if you’re interested in niche platforms or premium services that may not be available on all smart TVs.

Is Cord-Cutting the Cheaper Option?

Cord-cutting can be a cost-effective alternative to traditional cable TV, particularly when considering the lower monthly prices of streaming services. Many streaming platforms offer subscription plans that are significantly cheaper than cable packages, making them an appealing choice for budget-conscious consumers. If you primarily watch specific genres or channels, picking and choosing streaming subscriptions can seem like a more affordable way to customize your viewing experience.

It’s important to recognize, however, that the costs can add up if you subscribe to multiple streaming services to get the content you desire. Each individual subscription may be cheaper than a cable package, but subscribing to several can quickly exceed the cost of a cable bill. If you sign up for Netflix, Hulu, Disney+, and a live TV streaming service, for example, the cumulative monthly expense can become significant. That’s especially true if families find themselves needing to accommodate different viewing preferences, leading to even more subscriptions.

Many cable companies offer bundle options that include not just TV, but also internet and phone services at a reduced overall rate. Bundles can provide substantial savings compared to purchasing each service separately, making cable more appealing if you’re looking for comprehensive packages. Additionally, cable often includes live TV channels, sports programming, and other features that streaming services may not provide or do so at a high price.

The best way to decide if cutting the cord makes sense for you is to do the math. In my home, for example, I pay $75 per month for streaming services, including Philo for live TV. It’s worth noting that we’re not a sports-watching household (which is where many homes find their costs rising). Compared to $150 to $200 for cable, we’re saving money. If your household watches sports, however, you may end up paying over $75 for a live TV streaming service on top of streamers such as Netflix and Hulu, which may be comparable to your cable TV bill.

Do some research on which streaming services you would want to add, and compare live TV streamers that may include features you’re looking for, such as sports or DVR. Add up the estimated cost of what you would spend compared to what you’re currently spending with cable. Will it save you money, is the cost similar, or are you losing money on the deal?

Frequently Asked Questions About Cord-Cutting

Why is streaming so much cheaper than cable?

Streaming platforms typically have lower overhead costs since they don’t require the extensive infrastructure that cable companies maintain for delivering signals. They also operate on a subscription-based model without the need for contracts, enabling consumers to choose and change services more freely. That flexibility, combined with the absence of equipment rental fees and often fewer bundled services, allows streaming providers to offer competitive pricing that appeals to budget-conscious viewers.

What are the disadvantages of streaming TV?

One major drawback of streaming is the reliance on a stable and fast internet connection. Without it, you may experience buffering, low-quality video, and interruptions. The vast array of streaming options can also lead to subscription fatigue, since users may find themselves paying for multiple services to access their desired content, which can ultimately add up to costs comparable to or even exceeding traditional cable bills. Content availability can vary among services, and licensing agreements may cause your favorite shows or movies to be removed, leading to frustration if you expect consistent access to your preferred content.

Can I cancel my cable and keep my internet?

Yes, you can cancel your cable subscription while keeping your internet service. Most ISPs offer stand-alone internet plans that allow you to maintain your internet connection without the need for a cable TV package. It’s important to check with your ISP regarding any contractual obligations or fees that may apply when canceling cable, as well as the internet speed options available, to ensure you find a plan that meets your streaming needs.

What is the best streaming service?

Determining the best streaming service largely depends on your preferences and content needs, but many consider Netflix to be a leading choice due to its extensive library of original programming, movies, and documentaries.

Is there a totally free streaming service?

Yes, there are several free streaming services that allow you to watch content without any subscription fees, although they often come with ads. Services such as Tubi, Pluto TV, and Roku offer a variety of movies, TV shows, and live channels without requiring payment. Those platforms may not have the extensive libraries or original content found on paid services, but they provide a cost-effective way to access entertainment.