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Cord-cutting: Alternatives to expensive cable

Emily Starbuck Crone
NerdWallet
Cord cutting is looking more attractive since streaming services cost far less than cable packages.

It's no surprise that more consumers are cutting the cord on cable and switching to streaming programming. Not only do streaming services cost far less than cable packages, but they also allow you to watch what you want, when you want it with fewer, if any, commercials.

Once you decide to leave your cable provider, you still have to choose a streaming service that offers you the variety of content you need at a reasonable price point. Services will vary by cost, selection of current TV shows, availability on different streaming devices, subscription terms and frequency of commercial interruptions.

A look at your options

With traditional cable, you can easily pay upwards of $60 per month for television, and that's not including Internet. Consumers who can't afford their pricey cable service may find a better alternative with one or a combination of the following streaming services:

Sling TV

This new streaming service changes the game, since it will feature live TV from popular channels such as ESPN, CNN and Food Network. A subscription is only $20 a month and can be cancelled any time. As of now, it's still invitation-only and not widely available. It may not be available on Google Chromecast or Apple TV, though it's expected to be compatible with most other popular streaming devices, computers and tablets.

Hulu Plus

For $7.99 per month and with no long-term commitment, Hulu offers thousands of TV shows from major networks, such as ABC, Comedy Central and Fox. There's no live TV, but episodes are available the day after airing. Many movies are also included, as are a variety of original Hulu series. The downside: it's not commercial-free, though there are still fewer ads than cable, and some shows only have the last few episodes available. There are also a few TV shows that can only be streamed on your computer — meaning you can't watch it on your television due to rights issues.

Netflix

Also starting at $7.99 per month and with no long-term commitment, Netflix offers thousands of movies and TV shows. The selection isn't as current as Hulu's, but it's completely commercial free. While there's a delay of a few months before TV shows or movies become available, the streaming service has upped the ante with acclaimed original series, such as House of Cards and Orange is the New Black, which you can only view with a subscription.

Prime Instant Video

Amazon Prime members get access to Prime Instant Video, a streaming service offering thousands of ad-free streaming television shows and movies. Similar to Netflix, the content isn't as current as Hulu's, but you do get access to exclusive Amazon original shows, such as Transparent and Alpha House. One drawback is that there's an annual fee of $99 per year instead of a low-commitment monthly subscription.

What's on the horizon

Standalone HBO

It's increasingly common for consumers to have subscription to HBO through their cable provider, but only watch it through the HBO GO app on a streaming device. HBO has announced that in April, it plans to launch a standalone service that won't require a cable subscription. If more networks end up offering this model, quitting cable will be that much easier.

Sports channels

Sports lovers should know that Major League Baseball, the National Basketball Association and the National Hockey League all have subscription services available on most streaming devices. The catch is that for now, in-market games are blacked out, which means you'll still need access to cable to watch events broadcasted in your area. While ESPN has a streaming app, you can only access it if you have ESPN through a cable subscription.

How to view streaming content

When you're subscribed to streaming services, you can view content directly on a computer or tablet if you don't mind a small screen. Newer "smart" TVs also have some streaming services built-in, as do some video game consoles and DVD players.

If you want to watch streaming content on your TV, but don't own the aforementioned technology, you'll need to buy a separate streaming device, such as a Roku, Google Chromecast, Apple TV or Amazon Fire TV. Each of these devices has a one-time purchase fee, but cost nothing on an ongoing basis; you only pay for subscriptions to the streaming services you want. Not all streaming devices offer all services, so compare before you buy.

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