YouTube TV recently announced a price increase, bringing its monthly subscription cost to $82.99. This has prompted many to ask: is it still a more affordable option than traditional cable TV? The answer, according to recent data, is a resounding yes.
While YouTube TV’s price has risen, the cost of cable television has skyrocketed in recent years. Cord-cutting, the trend of consumers ditching cable for streaming services, has put pressure on cable providers, leading them to increase prices to recoup lost revenue. In the last three years alone, average cable bills have jumped by a staggering 52%, increasing “three times the cost of inflation” from $96 to a whopping $147 per month, according to recent reports by MNTN. This price hike comes even as cable providers reduce the number of channels included in their packages, meaning consumers are paying more for less.
Research from MNTN reveals that the average household only watches about 15 channels out of the 200+ offered in a typical cable package. This means that a significant portion of the monthly cable bill is essentially wasted. Calculating the “true cost” per channel, MNTN found that consumers are paying an average of $9.57 per channel, a figure that rivals or even exceeds the cost of many leading streaming services.
Furthermore, a survey revealed that over 45% of cable customers would cancel their service if it wasn’t bundled with their internet. This highlights the captive nature of many cable subscribers. Meanwhile, 54% of households already subscribe to at least one streaming service, indicating a clear shift in consumer preference.
MNTN’s research further emphasizes the cost-effectiveness of streaming. For less than a third of the average cable bill, consumers could subscribe to multiple major streaming services, including Hulu, Paramount+, Peacock, and HBO Max, totaling around $59.92 per month. This combination would likely provide access to all their favorite broadcast and cable TV shows, along with a vast library of on-demand content.
Even with YouTube TV’s new $82.99 price tag, it remains significantly cheaper than the average $147 cable bill. And with features like unlimited DVR and multiview, it offers a compelling alternative to traditional cable.
The rise of streaming has also given consumers greater choice and flexibility. Platforms offer various tiers, including ad-supported options, providing even more budget-friendly ways to access content.
While YouTube TV’s price increase may cause some initial sticker shock, the data clearly shows that it, along with other streaming options, continues to offer a significantly more affordable and customizable viewing experience compared to traditional cable television.