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IPTV vs. Cable TV: How Much Can You Save?

Editorial Team 5 min read
Illustration of a dollar sign next to a grid of streaming channel tiles

For years, cable was the default way to watch live TV in the US. Today, more households are questioning the monthly bill, and for good reason. Between equipment rental, regional fees, taxes and price increases when promotions end, the number on the bill is often much higher than the advertised package price.

In this article, we'll break down where cable costs come from, how IPTV pricing works, how to compare the two fairly and which option makes sense for different kinds of households.

Where your cable bill really goes

The advertised price of a cable package is only the starting point. A typical bill includes several other line items.

The base package

This is the price you see in ads, usually tied to a promotional period of 12 or 24 months. When the promotion ends, the price commonly goes up, sometimes substantially.

Equipment rental

Most providers charge a monthly fee for each receiver or DVR box. If you want TV in the living room, the bedroom and the basement, you pay for three boxes every month.

Surcharges and fees

Many bills include "broadcast TV" or "regional sports" fees that aren't part of the advertised price. They're often listed separately and can increase during the year.

Taxes

Local and state taxes are added on top and vary by location.

Contracts and cancellation fees

Many cable and satellite deals require a one- or two-year commitment. Leaving early can mean an early termination fee.

Tip: Pull out your most recent bill and add up every TV-related line, not just the package price. That total is the number to compare.

How IPTV pricing works

IPTV takes a much simpler approach. With our service, you choose:

  1. A plan length: 1, 3, 6 or 12 months.
  2. The number of screens you want to use at the same time: 1, 2 or 3.

You pay one price for that period, in US dollars, and that's it. There's no equipment rental because you use devices you already own, no installation appointment and no long-term contract. Longer plans cost less per month. You can see the current prices and per-month cost of each plan on our pricing page.

Side-by-side comparison

Cable TV IPTV
Pricing Package + equipment + fees + taxes One price per plan
Promotional price increases Common after 12–24 months Price shown is the price you pay
Equipment Rented box for each TV Use your Smart TV, streaming stick, phone or computer
Installation Often a technician visit Install an app in minutes
Contract Often required None
Extra screens Extra box and monthly fee Choose 1–3 connections
Watch outside the home Limited Any device with internet

Working out your own savings

Here's a simple way to compare your options:

  1. Add up your current TV costs for one month, including every fee and box.
  2. Multiply by 12 to get your yearly cost.
  3. Compare with the 12-month IPTV plan for the number of screens you need.
  4. Factor in your internet plan. You need home internet for both; if you're keeping it anyway, it isn't an extra cost. If you'd need a faster plan for streaming, include the difference.

Many households find that the yearly difference is substantial, especially those paying for several cable boxes or whose promotional rate has expired.

Hidden costs of switching (and how to avoid them)

Switching isn't completely free of effort. Plan for these:

  • Devices: If your TV isn't a Smart TV, you may need an inexpensive streaming stick. See our Fire TV Stick setup guide.
  • Internet speed: Make sure your connection can handle the number of screens you want. Our guide to internet speed for 4K streaming explains how to check.
  • Returning equipment: When you cancel cable, return the boxes promptly to avoid unreturned-equipment charges.
  • Contract timing: If you're under contract, check whether waiting until it ends is cheaper than paying a termination fee.

Who benefits most from IPTV?

Cord-cutters on a budget. One predictable price is easier to plan around than a bill that changes with fees and promotions.

Multi-TV households. Instead of renting a box for every room, you choose the number of simultaneous connections you need.

People who watch on the go. Your subscription works on phones, tablets and laptops, not just the TV connected to the cable box.

Renters and people who move often. There's no installation and no hardware tied to an address.

When cable might still make sense

To be fair, cable can still be the right choice in some situations:

  • Your home internet is slow or unreliable, and faster service isn't available.
  • You have a bundle discount that makes TV almost free with your internet plan.
  • You prefer a single provider for everything and don't mind the cost.

If any of these apply, it's worth comparing carefully before switching.

Making the switch

  1. Check your internet speed on the TV you'll use.
  2. Request a free trial to test the service on your devices.
  3. Pick a plan on our pricing page.
  4. Set up your devices using our device guides.
  5. Cancel cable and return the equipment.

New to IPTV? Start with our beginner's guide for a full overview.

Frequently asked questions

Do I need to keep my cable internet?

You need a home internet connection, but it doesn't have to come from your TV provider. Many people keep the same internet service and simply drop the TV package.

Is IPTV cheaper than streaming apps?

It depends on how many apps you subscribe to. IPTV focuses on live TV plus an on-demand library in a single subscription, which can replace several separate services for some households.

Are there any setup fees?

No. There are no installation or activation fees with our plans. You pay only the plan price shown on the pricing page.

Can I go back to cable later?

Yes. Because there's no contract, you can simply let your plan expire.