LITTLE ROCK, Ark. (KTHV) - Numbers show more and more people are subscribing to Netflix, Hulu or other streaming services, while we see people dropping cable services.
Paul Hughes is one of the millions who canceled pay-TV cable services. We call him a ‘cord-cutter' and he canceled his pay-TV subscription about three years ago.
“The biggest thing for me was not necessarily how much you're saving, but having control over what you're paying for," said Hughes.
According to a national market research company, eMarketer, 33 million people will cut the cord this year. The company reports the trend is happening at a faster rate than expected.
Leichtman Research Group found the largest pay-TV providers, like Comcast, Charter and Cox, lost about 305,000 subscribers in the first quarter of 2018. That’s following a drop of 1.5 million subscribers in 2017.
Meanwhile, Netflix ended March 2018 with 125 million subscribers worldwide and Hulu reports growing to more than 17 million subscribers in 2017.
"They’re calling cable television what it really is -- it’s a luxury," said Alexander Smith, business consultant with Scale Technology. “I think it’s a lot bigger than people have realized and its actually been happening for a lot longer."
Smith studies how people are adapting to technology changes
“Now you have a lot of streaming apps where people are saying ‘I can tailor this to what I specifically like and pay a fraction of the cost’," said Smith.
eMarketer claims pay-TV subscribers are paying roughly $100 a month for cable.
"It can be upwards of $1,000 a year," said Smith.
Paul purchased a $50 streaming stick to access Netflix, Hulu, Amazon Prime and a Major League Baseball subscription on his TV. One of the benefits to streaming services is they often don't have a contract so you can try it and cancel at any time.
Netflix costs a minimum of $7.99 a month, Hulu costs a minimum of $7.99 a month and Prime is $119 annually. MLB also costs $82.99 annually, which Hughes splits with his brother, so he spends an estimated $30 monthly for his services.
"With these streaming services you get to pick and choose exactly what you want and if you don’t like it, you can stop it and its done," said Hughes.
Paul also purchased a $40 digital antenna, giving him basic channels for free.
There are also live TV packages delivered via the internet like Sling TV, $25 a month, DirecTV Now, $35 a month, YouTube TV, $40 a month, and PlayStation Vue, $44.99 a month.
"You can basically pick and choose your channels and tailor it to your likes," said Smith.
Making the switch doesn't always make things easier and many enjoy the simplicity of cable TV.
"It’s a sacrifice," said Smith, who understands why many keep cable. “You have a plethora of television shows you can watch at any given time and it’s a luxury"
If you like having all of your favorite shows in one place like cable subscriptions are, without a doubt, a simpler way to access these shows.
“You kind of have to give up a little bit, whereas, the people who have cable, I guarantee they're keeping it for the accessibility to be able to watch their favorite stuff, they don't want to give that up, and I don't blame them," said Smith.
If you’re deciding what's the best bet for you, look at your budget and consider what are you really spending time watching.