April 20, 2021
In a recent article, Wired tries to make the case that "Cord Cutting Isn't About Saving Money; It's About Control". The digital mag isn't completely off base, but it does, perhaps, overstate its point. This week, we'll talk about why cord-cutting really is about both saving money *and* control, and how both are still possible.
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Streamer's Spotlight: Is Cord-Cutting No Longer About Saving Money?
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In his Wired article published April 16, Alex Cranz attempts to make the case that cord-cutting is no longer about saving money, but about having control over what you can watch, and where. Her article appears to lean into the idea that because YouTube TV, Hulu, and the like are as expensive as Spectrum, cord-cutters are no longer signing up to these for the cost, but for the ability to "preserve the social contract" between broadcasters and consumers. There are some notable problems with her approach, however.
YouTube TV, Hulu + Live TV, etc. Are Still Cheaper
We're not going to pull punches on live TV streaming service providers. They've gotten far too expensive. Those costs have skyrocketed in the past two years, with $64.99 being the price point many are settling at right now.
To highlight her point, she points to Spectrum TV, which she says she can get for less than these services. That's true if you only look at the advertised price. But with traditional cable TV, the advertised price is never what you end up paying.
For example, right now, Spectrum advertises its TV Select package as available "From $44.99 per month". Oh boy! That's definitely cheaper than YouTube TV and Hulu + Live TV, and by $20/per month! That also comes with 125 channels, more than both services offer.
But there's an asterisk by that pricing. Spectrum locks you into that package for 12 months. If you want to cancel you'll could end up paying an early cancellation fee up to $75. And the price listed doesn't include the $11+/month for equipment, the $50 installation fee, the $12.99/month you'll pay if you want DVR, or the $16+/month broadcast TV service charge.
Is Spectrum cheaper than live TV cord-cutting services like Hulu + Live TV,or even FuboTV? Hardly. You're still saving a ton of money on a monthly because cord-cutting services don't attach so many extra taxes fees.
Cranz Isn't Wrong About Control, However
Still, Cranz isn't wrong that cord-cutting is about control. The above example with Spectrum actually also a good support for her argument about control.
Take contract terms, for example. Traditional cable companies have long imposed one to two-year contracts on customers. Getting out of those contracts usually comes with an early termination fee. That's something that doesn't exist with cord-cutting services. And *that* is a prime argument for the type of control over services that Cranz could have made and elaborated on in her article (but failed to address).
Additionally, some of that control is about having the option to not buy every channel to get the channels you actually want. Cranz highlights this a bit but doesn't make a solid argument to support that position.
The diversification in the streaming market is good and bad. The bad is obvious here: Your costs can quickly add up if you want to get every channel (Paramount+, Peacock, Netflix, ESPN+, etc., etc.). But on the flip side, you can cancel or suspend subscriptions at will. There's no need to pay for everything at once, or even all year long. It's empowering for consumers, even if it makes the streaming environment more expensive from a top-level view.
Long Story Short: Cord-Cutting Is still About Both
Costs for cord-cutting have gone up. Nobody is going to debate that. But traditional cable remains far too expensive and far too restrictive. Cord-cutting can still save you hundreds of dollars each year. The streaming environment is just that consumers need to be a bit more skillful and discriminating to navigate around and realize those cost savings.
Of course, that's the core philosophy of the tools we're building at Flixed, so maybe we're a bit biased!
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This Week's Streaming Guide
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1. Hulu's Sasquatch Isn't About Big Foot
Hulu's new Original series Sasquatch by carry a mythical title, but it's not quite what it seems. Watch TODAY (April 20) on Hulu. - Watch on Hulu
2. Here Comes the 2021 NFL Draft
It's happening! Watch the 2021 NFL Draft this WEDNESDAY (April 21) on ABC at 8 PM EST. - Watch ABC Without Cable
3. German Sci-Fi Film 'Stowaway' Hits Netflix
From Netflix: "A three-person crew on a mission to Mars faces an impossible choice when an unplanned passenger jeopardizes the lives of everyone on board." Available this THURSDAY (April 22). - Watch on Netflix
4. 93rd Academy Awards Coming in Hot
After a weird pandemic year for the film industry, the 93rd Academy Awards may end up being among the least-watched in its history. View the event on ABC this Sunday (April 25) on ABC. - Watch ABC Without Cable
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News and Industry Developments
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1. YouTube TV Pairing with Mobile Providers to Offer Big Discounts
Discounts are available from both T-Mobile and Verizon. - FierceVideo
2. Should Netflix Have Just Bought Sony?
The company secured rights to Sony films, but should it have just...bought Sony outright? - Vulture
3. FuboTV Stock Continues to Bleed
After surging to 62 after its IPO, FuboTV's stock dropped below $20 per share. What happened? - Yahoo! Finance
4. ODD: Sling TV Is Suing Peleton Over Streaming Technology
In the world of "weird lawsuits to happen" this one is certainly up there. - FierceVideo
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