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Cord Cutting Saves Americans Billions

Those of us who have found other ways to watch TV without cable already know that cutting the cord can save tons of cash.  However, there are many naysayers that say that cord cutters wind up getting too many services to make it that much cheaper than pay-TV. Well, a recent study has finally put this argument to rest.

A study by research firm cg42 shows that cord cutters save $104 per month on average. That’s over $1000 a year. Multiply those individual savings by the millions of cord cutters means billions of dollars back into the hands of American consumers.

This study completely contradicts reporters like Evan Horowitz, who claims:

even if you drop pay TV, you still need an Internet connection — generally provided by the very same companies, folks like Comcast and Verizon Fios. And their subscription packages are hedged to ensure that if your TV bill goes down, your Internet bill will go up.

Instead, the study shows that internet cost for cord-cutters went up less than $1 per month on average. While the study doesn’t speculate why this mythical internet price increase doesn’t exist, it may be due to ISPs having to compete with Google, municipal internet, and internet startups that have given larger ISPs a bit more competition over the past 2 years.

I’ve also heard the argument that cord cutters have to buy too many services to be as happy as they were with pay TV. That simply isn’t the case. As the cg42 study indicated, people with cable TV already spend about $15 a month on streaming services. That cost only increases $5 per month on average when consumers cut the cord.

In light of the fact that so many people already subscribe to Netflix and Amazon Prime, this should be self-evident. However, many people make the mistake of factoring in the services they are already paying for when they cut the cord.

How Happy are Cord Cutters

Readers may think; “Great! Cord cutting saves money, but will I be happy?” The study seems to indicate that most will. A key finding states:

Overall, 84% of Cord Cutters are happy with their decision to cut the cord and less than 2% plan on returning to Paid-TV in the next 12 months.

Furthermore, the study indicates that a majority of respondents can access most or all of the shows they desire. That trend tends to increase the longer a respondent has been away from Pay-TV. In my experience, I’m happier.  Most of my content is commercial free, which makes for a more pleasurable viewing experience.

Furthermore, since I’m  not purchasing a large bundle, I can make a value judging on the individual shows or services I purchase. This leads to watching higher quality TV shows.

Don’t believe the naysayers. Cutting the cord makes sense not just for your wallet, but your happiness as well.

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Categories: Tech News
Dennis Restauro :Dennis is the founder of Grounded Reason. He also hosts the Grounded Reason Podcast. Follow him on Twitter: Follow Dennis on Twitter

View Comments (6)

    • Paul, Lenny, and Christopher,

      Thank you for the kind words. Thanks for supporting the website.

  • Thanks for a GREAT article! I've been a Cordcutter for over a year. I'm am COMPLETELY happy!

  • Hi Dennis - just wanted to thank you for all of the help that you have provided in my personal cord cutting journey. It started a couple of years back when I finished my basement, put in a nice home theatre setup, but did not want to pay my provider for a second cable box. Instead, based the advice provided on your site, I installed a Mohu antenna in my attic (did not want to fight the condo association's rules about outside antennas), and picked up a robust set of better quality over-the-air channels for free on my basement TV setup. More recently, for my living room TV, and again based on the advice provided on your site, I picked up on the $35/mth introductory ATT DirecTVNow offer with the free Apple TV. I did an extensive comparison of that offering vs my cable provider, and determined that I will loose one channel of interest to me (NESN), will retain 78 channels (common to both), and can access 30 new channels that DirecTVNow offers that are not available with my current cable subscription. And, for the price of a second Apple TV box, I now have that complete capability on both TVs. With these changes, I have $60 each month in my pocket that was previously going to a cable provider. I recently retired, and being on a fixed income, that monthy savings means a lot! I enjoy your site, and just wanted to let you know how much I appreciate the information that you so willingly have shared over the years. Thanks, and keep up the good work!