Cable TV vs. streaming services: What's the best option?

Streaming services provide content over the internet, allowing users to watch their favorite content on smart TVs, computers or smartphones in real time without downloading files. The streaming technology uses bitrate streaming of media, which adjusts the quality of content based on the user’s internet speed and device capabilities.

When you pick content to watch, the streaming platform transmits small data packets to your device, which are temporarily stored and played back, resulting in a continuous viewing experience.

Streaming services generally fit into two types:

• Video-on-demand streaming services: These services offer users a vast library of content where they can watch various movies and TV shows, documentaries and exclusive content at their convenience. Subscribers can watch content at their own pace or binge-watch it without interruption. Examples of these platforms include Netflix, Hulu and Disney+.
• Live streaming services: Live TV platforms like YouTube TV, Hulu + Live TV and Sling TV provide live channels like traditional cable, where users can watch news, sports and entertainment in real time, over the internet. They offer the flexibility of streaming and include cloud-based DVR services.

Cost-effectiveness

Streaming services are generally more economical than cable TV. They offer multiple pricing tiers with varying content access, which users can choose based on their budgets. These platforms also offer free trial periods during sign-up, during which users can enjoy the content freely for a short time and decide whether or not to continue with the service.

Flexibility and customization

Streaming services offer flexibility and customization regarding where, when and how you can consume content. You can watch content from anywhere with an internet connection, pause and resume anytime and watch the same content on multiple devices.

Many streaming platforms also allow custom profiles and account sharing within a single account across devices to provide personalized content recommendations and enable family members to watch different content simultaneously.

On demand content

Streaming services provide on demand content with extensive libraries of movies, TV shows and original programming. Users have more control over what they watch and when without being tied to fixed programming schedules.

Internet dependency

Streaming services are dependent on internet connectivity. Users without high-speed internet or with poor internet connectivity due to network congestion at peak usage hours may face problems such as buffering or degradation in picture and video quality, especially when streaming HD and 4K/8K content.

Generally, streaming services lack the consistency of cable TV, which is unaffected by unstable internet connections or a lack of internet access.

Potential for multiple subscriptions

Although one subscription may be affordable, costs begin to mount when you subscribe to more than one service to access content. For example, you may subscribe to Disney+ for its family-friendly shows, Netflix for its original shows and YouTube TV for live-streaming news and sports. The total cost of managing these multiple subscriptions can exceed the price of a traditional cable TV plan.

Limited live sports options (for some services)

While some streaming services offer live sports options, they are typically limited compared to traditional cable TV.

Cable TV is still the go-to option for watching major sports leagues like the NFL, NBA, international sports and local team games, which are frequently not fully covered by streaming platforms. Limited options push sports fans to keep a cable TV package in addition to their streaming services.

• Traditional cable offerings: Cable TV has been the go-to for major and local sports and news channels and other live events for a long time. While Live TV streaming services offer some of this content, options are more limited.
• Streaming alternatives for sports fans: While Live TV streaming platforms like YouTube TV and Hulu + Live TV offer alternative sports channels, certain sports events may still be exclusive to cable TV. Sports fans with streaming services looking to catch up with their favorite niche sporting events may need to subscribe to specialized sports streaming services like ESPN+ or DAZN, which lead to extra subscriptions or reverting to their cable TV packages for blanket coverage.

Both cable TV companies and streaming services have embraced bundled deals to offer more value to their customers. Let’s look at the bundling options available.

Most cable providers use this strategy to entice customers with bundled deals that include internet, TV and sometimes phone plans in one bill. These bundles can be cheaper than buying each service individually. Many cable service providers also offer promotional discounts during sign-up, which can result in significant savings.

Cable TV and internet bundles also allow users to tailor their plans by selecting from various options, including combining different internet speeds with various TV and phone packages.

If you watch a lot of traditional TV and require reliable high-speed internet, consider subscribing to cable TV and internet bundle plans.

Streaming services have started offering bundles that combine multiple streaming platforms under a single subscription. An example is the Disney+, Hulu and ESPN+ bundle, which saves money and provides diverse cross-platform content to cater to different preferences.

However, streaming service bundles have less flexibility as they have fixed combinations of services, while cable bundles allow for mixing-and-matching of services. Streaming bundles also may not provide channel variety compared to cable TV, especially in live news and sports content. Additionally, some content may overlap across the streaming platforms, leading to redundancy.

Before choosing between cable TV and streaming services, consider the following factors.

• Watching habits: Streaming is ideal for viewers who want the freedom to watch content on their own time or binge-watch entire shows. On the other hand, cable TV is perfect for individuals who prefer scrolling through channels and discovering content in real-time.
• Budget restrictions: Streaming services are usually cheaper than cable television packages. However, if you subscribe to multiple streaming services or streaming bundles to cover your entertainment preferences in addition to a high-speed internet plan, the price gap between streaming and cable shrinks.
• Speed and internet availability: If you live in an area with limited internet access or slow speeds, cable TV is more reliable as it does not depend on the internet to deliver content. If you have internet access for streaming, factor in the cost of upgrading high-speed tiers to stream in HD, 4K or 8K quality.
• Desired Content: If you prefer live sports, news, niche channels and discovering real-time events, cable TV may be the better option. Conversely, if you love watching exclusive content, streaming services can fit your needs.
• Number of viewers and devices: Consider how many people watch content simultaneously in your household and on what devices. Streaming services offer multi-device viewing but limit the number of concurrent streams. Cable TV may require additional equipment to enable multi-device viewing.

You can choose a hybrid approach combining streaming, cable TV and internet services to enjoy all the benefits. You can achieve this by:

• Combining cable with select streaming services: You may want to retain your cable TV package to remain updated with live sports and news and then add one or two streaming services for on demand
• Using an antenna for local channels with streaming: You can use an HD antenna to access free-over-the-air local channels and subscribe to streaming services for additional content. This approach allows you to access live local channels and on demand content at a lower cost.
• Subscribing to cable internet with streaming TV: You can maintain a cable internet subscription for reliable internet while subscribing to streaming services. This approach is cost-effective if your cable internet provider offers competitive internet-only plans.
• Triple-play bundle: This hybrid approach combines cable TV, high-speed internet and streaming services in one comprehensive package. Some cable service providers offer cable TV alongside internet plans and include subscriptions to specific streaming services as an add-on. Users can choose different tiers within each service category to cater to their needs.

Cable TV and streaming services have the potential to grow and adapt to market changes. Some of the trends and predictions for the future to watch out for include:

• Growth of the streaming industry: The streaming industry is expected to grow, challenging cable TV’s dominance as media companies launch their own streaming platforms. This growth could lead to further content fragmentation while providing viewers with various content libraries to choose from.
• Cable TV adaptations: Cable providers are adapting their services to compete with streaming, offering more flexible packages, integrating streaming platforms into their plans and improving TV Everywhere app services that enable viewers to watch content anywhere, as they can on streaming platforms.
• Potential for à la carte cable options: This approach could provide more flexibility for cable TV consumers, allowing them to choose individual channels to subscribe to rather than subscribing to many channels they don’t need. This approach gives consumers more control over the content they want and makes cable TV more competitive with streaming services in terms of customization and cost.
• Integration of AI and personalization: Both cable and streaming services will likely incorporate AI-driven content recommendations and personalized user experiences to attract and retain customers.
• Interactive and immersive content: As virtual and augmented reality (VR and AR) advances, cable and streaming companies will likely invest in these technologies and integrate them into their platforms to enhance viewership experiences. For instance, VR companies like NextVR partnered with the NBA and NFL to provide immersive live-streaming experiences as if they were courtside. Fans could stream games from various angles using a VR headset or a smartphone, including a 360-degree view of the arena.
• Rise of FAST TV streaming services: FAST (Free Ad-supported Streaming TV) is a streaming model that combines the accessibility of streaming with the familiar experience of cable TV. FAST TV platforms like Pluto TV, Tubi and XUMO offer free access to live TV channels and on demand content via the internet on multiple devices. Their revenue comes from ads rather than monthly paid subscriptions, making it possible for customers to watch content for free.