Our Rebuttal to NBC’s Anti-Cord Cutting Story





Cutting the cable connection to coax connector illustrating people cancelling cable TV service

Cutting the cable connection to coax connector illustrating people cancelling cable TV serviceThis week, Netflix announced a $2 price hike and, as you would expect, big media companies jumped at the chance to bash cord cutting. This time NBC News quickly released a story called “The Bundle strikes back: How streaming caught up to cable TV prices.” In this story, NBC News (which is owned by Comcast) argued that streaming now costs as much as cable TV.

They have Internet costs on average at $68 a month. Netflix, Hulu, HBO Now, and Amazon Prime Video cost $45 a month for a total of $113 a month. When compared to $120 for what they claim is the average cost of cable TV and Internet they say it just doesn’t make sense to be a cord cutter.

Now as you would expect Daniel Arkin, the author of the NBC News story, glosses over anything that may upset his push to get you to subscribe to cable TV. For example, how that $120 price likely does not include the fees and taxes that Comcast charges. For example, how some Comcast and Spectrum fees can add up to over $60 a month, or how some Comcast plans now start at $254.95 a month.

So, that $120 plan they talk about could easily cost you over $180 once you add in the fees and taxes. Let’s not forget how that is also only the introductory offer.

The other factor this author forgets is most cable TV subscribers already pay for a streaming service. Many of the most popular shows right now are not available on cable TV, such as The Handmaid’s Tale and Stranger Things. A recent study showed that almost 80% of cable TV subscribers also subscribe to Netflix or some other streaming service. So now you need to add the cost of Netflix, Hulu, or Amazon (as many people pay for Amazon just to get the free shipping) on top of the cable TV bill.

No matter what way you look at it, cord cutting will save most Americans money. Just in the example shown cord cutting will save you $84 a year. When you add in the fees and taxes, that same example will save you $804 a year.

What about the price hikes? Remember most cable customers are facing their own prices hikes this month of anywhere from $5 to $10 a month.

So, the next time cable TV companies like Comcast want to tell you how cable TV is cheaper, remember all the hidden fees and taxes.

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