Is Streaming Better or Worse for Consumers Than Cable?
In 2023 most of the streaming services raised their prices and I’ve heard a lot of people complain about streaming becoming a worse value than cable. Were consumers actually better off with a single cable bundle compared to cutting the cord and signing up for a smorgasbord of services?
The answer is: it depends on the type of TV watcher you are.
The Price-Sensitive Casual Watcher
If you are looking to be entertained on a shoestring, I think you’re in great shape in the streaming era. Most people like this are well-served by simply subscribing to Netflix which can be enjoyed for as little as $7 a month (it’s safe to assume that this consumer doesn’t mind ads). I suppose if you live in a metropolitan area you can watch broadcast television for free, but most non-sports fan consumers will get a lot more value from Netflix.
Even if this type of user wants to occasionally watch content on another streamer they can cancel Netflix for that month in order to maintain the same budget.
The Prestige TV Fan
This is the camp that has been super-served by streaming which is why I love the streaming era. For the past few years the best prestige shows have been on streaming (either simultaneously with linear or as exclusives) and the streamers have been ordering tons of these shows in order to compete (though we’re now seeing some pullback on this spending).
Also a massive portion of your cable TV dollar goes to sports content, whether it’s from ESPN or a regional sports network (RSN). The reason why you can still put any four streaming services together and still pay less than a typical cable bundle is the fact that you’re (mostly) not paying for the high cost of sports.
The Sports Fan
This is the user who is really getting screwed by the current state of play. If you want to watch every game from your favorite NFL team, you’ll need cable plus Prime Video (if they play on Thursday night) and on occasion, Peacock. If you want to watch your favorite MLB team you’ll need cable to get your local RSN, and occasionally Apple TV+ and Peacock. And if you’re interested in ESPN+, that’s extra.
Fortunately there is a light at the tunnel for sports fans. Disney, Fox and Warner Bros Discovery recently announced a new partnership to bring all of their sports content to a new service. The RSN model is collapsing very quickly now which should result in all MLB games being offered via streaming in one form or another.
In the end I think that sports fans will be able to cut the cord and go all in on streaming, probably for less than they pay now if sports is all they really care about.
Everyone Else
For everyone else who wants a bit of everything, you’re probably super confused right now about whether or not to cut the cord, and which streaming services to sign up for. Eventually I think this user will be offered some bundle options that more-or-less serves their needs. Yes, this sounds an awful lot like cable, but with streaming you can watch on your schedule (without having to remember to record anything) and you can binge your shows.
The biggest downside of the streaming bundle versus cable, is that with cable you have a single interface to watch all of your content, but each streaming service is a little different. Apple and Amazon have both tried to build singular UIs as a portal for all of your content, but so far most of Hollywood hasn’t signed on to that model.
