The Cord-Cutting Math is Now Official: Consumers Are Rejecting Pricey Live TV

A recent report from Cord Cutters News, "Most Cord Cutters Are Ditching Cable TV For On-Demand Services Instead of Options Like YouTube TV to Save Money", confirms a dramatic and welcome shift in the streaming market: more cord cutters are now skipping virtual live TV providers (vMVPDs) like YouTube TV entirely, opting instead for purely on-demand subscription services to save money.

This market trend powerfully validates a conclusion I first drew after analyzing my own viewing habits back in 2011, and which has been something we've discussed for years. The simple truth is this: cutting the cord does not need to mean simply stopping a massive monthly payment to a cable company only to start paying nearly the same amount to a streaming provider. It means looking at the massive world of streaming to find what truly works best for your viewing needs and, most importantly, your budget.

The Problem: The Cost of "Live"

The reason for this mass consumer shift is simple math. When I first cut the cord, the financial savings were instantly obvious. Today, live streaming services are no longer the cheap alternative they once were. The base price for major vMVPDs now runs nearly $100 per month.

The base ad-supported plan for Hulu+Live TV is now priced at $90/month, while YouTube TV's base price is $83/month. These costs are quickly approaching--or even exceeding--the cost of some entry-level legacy cable packages, erasing the original financial benefit of switching.

The Solution: The Core Cord-Cutting Math

My decision to cut the cord was driven primarily by money, a conclusion reached after two years of studying my 2009 and 2010 viewing habits. That analysis showed me that the vast majority of my viewing was time-shifted and could be achieved far more affordably by combining three core elements. This is the simple math that still holds true today:

On-Demand (SVOD)

If you are the type of person who records most of what you watch and catches up later, you are already functioning as an on-demand viewer. Using a low-cost service like the standard Hulu plan (now priced around $12/month) lets you watch most current-season shows hours after they air, which is functionally the same result as a DVR.

Free Local Channels (OTA)

For local news and specific live sports, an over-the-air (OTA) antenna provides free access to all major local networks (ABC, CBS, Fox, NBC). Pairing a good antenna with a tuner/DVR device for whole-home viewing is a one-time investment that saves you a monthly fee indefinitely.

Free Surfing (FAST)

For those who enjoy turning the TV on and letting it play, free ad-supported television (FAST) services such as Pluto TV, Tubi, and The Roku Channel offer hundreds of specialized channels with news, movies, and classic shows. These services perfectly mimic the experience of cable channel surfing without any subscription cost.

The difference between a basic on-demand plan (Hulu at $12/month) and the full live package (Hulu+Live TV at $90/month) is a premium of $78/month, or $936 per year, just for the live functionality. This massive savings potential is what more and more consumers are finally prioritizing, proving that the money-first approach is the right approach.

The feelings of satisfaction, control, and better viewing experiences were realized after I made the financial decision. More and more consumers are coming to the same essential conclusion: the future of TV is à la carte, built around the lowest-cost combination that meets your needs. My Streaming Life is one of minimizes my overall costs and maximized my freedom. Do whatever works best for you, and take control of your TV. Make it work for you.