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Last October, Netflix hiked prices for the second time in less than two years. The current monthly pricing for the Netflix Standard plan with ads is $6.99. Without ads, the Standard plan will run you $15.49 a month and the Premium plan will cost $22.99.
The company is cracking down on customers who share their accounts with people outside a single geographic household, introducing an $8 monthly charge in a long-threatened bid to retain customers and stanch a slowdown in subscription growth. Netflix uses location tracking to ensure subscribed users are logged in at a single home subscriber base, which is sure to test users already sensitive to growing threats to their online privacy.
Since the end of June, Netflix has blocked devices that attempt to access a Netflix account without paying the proper fees, according to TechRadar. Subscribers in a compliant household can keep using the service on the road, like on laptops or hotel TVs, without paying additional fees.
The Financial Times previously reported that Netflix had alerted internet provider partners in the UK that they should expect angry calls and support questions about the sharing price hike and location tracking features.
This move suggested that despite Netflix's best efforts, the company predicted a large number of subscribers would only detect the change when Netflix demanded an extra $8 for sharing the account outside their new "home" location.
Ben Demers manages digital content and engagement at Kiplinger, informing readers through a range of personal finance articles, e-newsletters, social media, syndicated content, and videos. He is passionate about helping people lead their best lives through sound financial behavior, particularly saving money at home and avoiding scams and identity theft. Ben graduated with an M.P.S. from Georgetown University and a B.A. from Vassar College. He joined Kiplinger in May 2017.","contributorText":"With contributions from","contributors":["name":"Esther D\u2019Amico","role":"Senior News Editor","link":"href":"https:\/\/www.kiplinger.com\/author\/esther-d-amico"]}), " -0-11/js/authorBio.js"); } else console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); Ben DemersSocial Links NavigationAudience Engagement Manager, Kiplinger.comBen Demers manages digital content and engagement at Kiplinger, informing readers through a range of personal finance articles, e-newsletters, social media, syndicated content, and videos. He is passionate about helping people lead their best lives through sound financial behavior, particularly saving money at home and avoiding scams and identity theft. Ben graduated with an M.P.S. from Georgetown University and a B.A. from Vassar College. He joined Kiplinger in May 2017.
With its contracts and fees, cable TV is nowhere near cheap. The alternative is a suite of streaming services, but paying for multiple subscriptions -- or even a live TV streaming service like DirecTV Stream -- could also rival your cable bill. According to a 2023 report from Leichtman Research Group, 83% of US households have at least one streaming service, with over 50% of us subscribing to four or more.
These days, you can sever the cord completely and solely use streaming services like Hulu, Disney Plus or YouTube TV. You can also keep satellite or cable TV as your main dish while subscribing to a couple of streaming platforms on the side. There's also the option to watch 100% of what you want on cable TV only.
All those choices can quickly become overwhelming, but don't worry. Here, we do the math to break down how you can save money in most parts of the US with the best combination of cable, streaming and internet. (You can also find out how much you can save shopping at Costco compared with a regular supermarket, and if it's cheaper to buy Xbox Game Pass or individual games.)
To compare the price savings between streaming and cable, we started with monthly cable costs across a handful of US cities. While streaming service pricing is the same no matter where you live, we crunched numbers for major cable companies in New York, San Francisco, Houston, Atlanta, Kansas and Michigan. Here's what we found using a representative provider from each city.
If those numbers seem low at first sniff, that's because they don't include taxes and fees, which make up a significant part of monthly costs for cable. They differ based on location, equipment and service type (like regional sports networks), so it wasn't possible to accurately include them in the prices above. Additionally, we made these calculations using rates for basic internet, which ranges from 200 Mbps to 400 Mbps for most cities featured this graph.
The tables above reflect the average cost after any promotional one-year or two-year pricing expires. Pricing also excludes discounts for autopay and paperless billing, which is typically $10 across the board. Competition in metropolitan areas like New York can drive prices down versus places such as Kalamazoo, Michigan or rural Kansas, so you may be spending a little more or less based on what's available.
Be aware that most internet plans available today should be fast enough to stream Netflix, even in 4K quality. The "slowest" budget plan we saw was 25Mbps (AT&T), but Netflix recommends a minimum of 5Mbps for 1080p or 15Mbps to get 4K. This means even the most basic connection should work fine if you only need to stream to one TV at a time. If you have a larger household, then a 50Mbps or even 100Mbps plan should be sufficient, and we found that most budget plans offered this.
The cheapest option? Get the least expensive internet plan you can and subscribe to Netflix, Disney Plus, Max and Hulu -- separately or all together -- and skip live TV. If you prefer other platforms such as Apple TV Plus ($10 a month), Peacock ($6 per month with ads) or Starz ($10), substitute them below.
If you want to have the cable TV experience without the fees and contracts, then live TV streaming is the next best thing. These services can offer a program guide, DVR and most of the familiar channels you're used to with cable. They cost more than on-demand services like Netflix, however.
You may be able to find a customizable cable/internet bundle that costs between $105 and $125, or a cheaply priced standalone internet service. But as we mentioned above, once you factor in taxes and extra fees, live TV streaming usually comes out cheaper.
The final line in the chart above shows the cost of DirecTV Stream with internet actually costing more than cable, and that's not a misprint. That service costs $109 per month for the Choice package, which includes regional sports networks, aka RSNs. These are networks that carry the majority of the NBA basketball, NHL hockey and (during the spring and summer) MLB baseball games for their local team. These RSNs are usually included in local cable packages, so most cable subscribers never have to worry about gaining access to the broadcasts on these channels.
Because of rights agreements, most live TV streaming services like YouTube TV or Hulu with Live TV don't carry many RSNs. DirecTV Stream is the exception. It has nearly every RSN, particularly the Bally Sports channels (formerly Fox Sports) offered by Sinclair, but you'll need to spring for the $100 plan. Another alternative is Bally's Plus, a $20-per-month option that offers access to numerous RSNs, but you'd still need another live TV service to follow national games as well as NFL football.
Ultimately, depending on your location, getting a cable subscription that includes sports channels like ESPN, FS1, TNT and the local RSN, as well as local CBS, Fox and NBC stations for the NFL, might actually be cheaper and easier than streaming.
Access to local news, live sports and network shows while they air is a trade-off some viewers aren't willing to budge on. Streaming services offer some but not all of these options. Another benefit is you can save a few bucks if you bundle all your services with a phone plan. Providers like Verizon and AT&T offer additional discounts.
While streaming prices continue to increase, there are no taxes or hidden costs. You also don't have to worry about fees for leasing equipment, contracts (unless you do an annual plan) or waiting (or paying) for the cable guy to come out for repairs or installation. You have the option to go commercial-free, and you're not spending money on a bunch of channels you don't want or watch. What else? Because you pay as you go on a monthly basis, there are no penalty fees for early cancellation and deactivation. You can watch content on demand with the ability to split costs for your account by sharing passwords. And that's all without a credit check.
If you want to save money, then the best thing to do is subscribe to the cheapest internet subscription you can and get a Netflix and/or Hulu subscription. You're done. However, if you find you would miss live TV, then the cheapest option is adding Sling TV to that. Yet, even signing up for Hulu Plus Live TV and internet will cost less than a premium cable subscription and yield a similar number of channels. Not to mention the copious amount of on-demand content Hulu includes -- which now also incorporates Disney Plus and ESPN Plus.
Unless you're a sports fan who needs a local RSN or cares about streaming lag, the main potential downside to cutting the cord is one of convenience -- especially if you're a channel flipper -- as you'll now need to navigate apps rather than use the channel buttons on your remote. If you're happy with your cable subscription then you may not need to even worry about cutting the cord, and saving money may be as easy as cutting out some of the packages you don't use. You could always supplement it with a Hulu, Disney Plus or Netflix subscription too.
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