About one out of 10 consumers (11%) canceled their pay-TV subscription during the last year, according to a new report from the Consumer Technology Association (CTA). More than a quarter cited alternate options available at a lower cost as the reason for the split, and 21% of consumers say they haven’t had a service provider subscription for more than a year.
Almost half (46%) of consumers are getting content through paid video streaming services, up seven percentage points from 2014. Not surprisingly, Millennials lead the charge, with 62% choosing paid streaming services. Meanwhile, for those over the age of 35, 71% choose a traditional service provider.
If you’re considering ditching traditional cable for the suite of apps and paid streaming services now available to you, there are some things you should ponder:
Sports will be a nuisance. Depending on your state of fandom, catching all the sporting events you want to watch without a cable package could be a pain in the neck. There are apps that can help with national team coverage, but many of the specialized sports networks aren’t available on any streaming services, and local games could require an antenna or a trip to a local sports bar.
Cable news might also be a struggle. You might not be able to view a live stream of your favorite network (CNN, MSNBC, etc) without a pay-TV provider login. If you’re an avid follower of a particular news personality or show, that’s something to consider.
You’ll lose the random movie find. For cable lovers, one of the draws is the chance to stumble upon a beloved old movie you haven’t seen in years, or a new favorite you’d be happy to watch again. There’s also the option of switching on the television for background noise, if that’s your thing. Somehow, scrolling through Netflix-available movies doesn’t offer the same sense of surprise.
Your Internet connection is important. Without cable, you’ll likely be streaming most of your content, so you’ll need an Internet connection that’s fast enough for your needs. This may require an upgrade if your ISP offers a higher bandwidth option.
You may need additional equipment. If you still want a DVR, you may want to invest in the TiVo Roamio. If you’re looking to grab some shows via antenna, well, you’ll need an antenna. Hoping to transfer content from your laptop to your TV? You may want a Google Chromecast, Amazon Fire TV Stick or a Roku Streaming Stick. Attracted to PlayStation Vue? You’ll need a PlayStation.
It may be cheaper—but not by much. By the time you cobble together all the services you need to watch the shows you follow, all the separate subscription costs may add up to more than you think. Before you give cable the heave-ho, run the numbers on the services you would need moving forward (Netflix, Hulu, HBO GO, Amazon Prime Instant Video) and make sure it’s worth the hassle. Slate put together a great calculator to help you do this.
That said, there are savings to be had if you don’t subscribe to every service available and if you’re judicious about your consumption. If the math (and the hassle) work out for you, cutting the cord may be a money-saving move.
