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Cord-Cutting Over Time: 12-Month Cost Projection vs. Cable Bundles

Cord-Cutting Over Time: 12-Month Cost Projection vs. Cable Bundles
Percival Westwood 30/12/25

Most people still think cable TV is the only way to watch TV. But if you’ve been paying $120 a month for a bundle that includes channels you never watch, you’re not saving money-you’re just used to it. Cord-cutting isn’t a trend anymore. It’s a financial decision that adds up fast. Let’s say you switch from cable to streaming today. What does your wallet look like 12 months later? Spoiler: you’ll save hundreds, maybe over $1,000.

What You’re Really Paying for Cable

Cable companies don’t sell TV. They sell packages. You get 150 channels for $119 a month, but only 12 of them matter. The rest? Sports networks you don’t care about, shopping channels, and repeats of 20-year-old reality shows. Add in equipment fees, regional sports surcharges, and a $10 monthly box rental, and your real bill hits $140. And that’s before taxes.

In New Zealand, Sky TV bundles work the same way. Even the basic package with 50 channels costs $95 a month. Add the HD box, installation fee, and premium sports add-ons, and you’re easily at $130. That’s $1,560 a year. And you’re locked in. No matter how much you use it, you pay.

How Streaming Works in 2025

Streaming isn’t one service. It’s a stack. You pick what you want. No contracts. No hidden fees. You pay for what you watch. Here’s what a realistic 2025 streaming setup looks like for most households:

  • Netflix - $18/month (Standard plan, 2 screens, HD)
  • Disney+ - $12/month (Standard, ad-free)
  • Prime Video - $9/month (included with Prime, but standalone is $10)
  • TVNZ+ / ThreeNow / Paramount+ - Free or $5/month for premium tiers
  • YouTube Premium - $12/month (ad-free, background play, music)

That’s $56 a month for everything you actually watch. No extra fees. No equipment rentals. No surprise price hikes every January. You can pause any service anytime. Skip a month? You save $12. Cancel Sky? You’re done.

12-Month Cost Comparison

Let’s break it down side by side. We’re comparing a typical Sky TV bundle in Auckland against a smart streaming setup.

12-Month Cost: Cable Bundle vs. Streaming Setup
Item Cable Bundle (Sky TV) Streaming Setup
Monthly Base Cost $119 $56
Equipment Rental (HD Box) $10 $0
Regional Sports Surcharge $12 $0
Taxes and Fees $9 $0
Total Monthly Cost $150 $56
12-Month Total $1,800 $672
Annual Savings $1,128

That’s over a thousand dollars saved in a year. You could use that to buy a new smart TV, pay off a credit card, or take a weekend trip to Rotorua. And you still get more content than you ever did with cable.

What You’re Losing (And What You’re Gaining)

Some people say, “But cable has live sports and news.” True. But here’s the thing: live sports are now on dedicated apps. Sky Sport Now costs $35/month. That’s cheaper than adding it to a cable bundle. And you can cancel after the season ends. News? TVNZ+ and ThreeNow stream live news 24/7. No cable box needed.

What you gain is control. You don’t have to watch ads on Sky. You can fast-forward through commercials on Netflix. You can binge-watch a whole season in a weekend. You can watch on your phone, tablet, or TV-no extra fee. You can pause and resume across devices. You don’t get charged for recording shows. You don’t get billed for accidentally watching a pay-per-view movie.

Two skeletons at a table: one overwhelmed by cable bills, the other relaxed with streaming apps and cash beside a glowing smart TV sugar skull.

Hidden Costs of Cable You Never Think About

Cable companies are experts at making you forget what you’re paying. Here’s what they hide:

  • Price hikes after 12 months - Your $119 deal? It jumps to $145 after a year. You don’t get a notice. You just see it on your bank statement.
  • Equipment fees - That box they gave you? You’re paying $10 a month for it. Even if you never use it.
  • Service fees - “Regional sports surcharge,” “broadcast fee,” “HD access fee.” These aren’t taxes. They’re made-up charges.
  • Early termination fees - Cancel before your contract ends? You pay $150. That’s like paying to quit.

Streaming services don’t do this. You pay your monthly fee. That’s it. No hidden fees. No surprise bills. No penalty for leaving.

Who Should Stay With Cable?

Not everyone should cut the cord. If you’re watching 8+ live sports events a week, and you need the same channel across 4 TVs in your house, cable might still make sense. But even then, you can get Sky Sport Now on one TV and use streaming for everything else. You don’t need the full bundle.

Also, if your internet is slow or unreliable, streaming won’t work well. But in Auckland, 95% of homes have fibre. If you’re on a 100Mbps plan or better, you’re fine. You don’t need cable for speed.

How to Make the Switch in 2025

Switching isn’t hard. Here’s how to do it without stress:

  1. Cancel your Sky TV contract. Call them. Say you’re leaving. They’ll try to keep you with discounts. Don’t take them. You’ll save more long-term.
  2. Return the box. You’ll get a prepaid label. Send it back. Keep the receipt.
  3. Buy a smart TV or a Roku/Apple TV box if you don’t have one. A basic Roku costs $50. One-time cost.
  4. Sign up for Netflix, Disney+, and Prime Video. Use free trials if you need to.
  5. Use free apps like TVNZ+, ThreeNow, and YouTube for news and local content.
  6. Set up parental controls on each app. You don’t need a cable box to block content.

You’ll be done in an afternoon. No technician. No waiting. No new wires.

Twelve calendar pages show savings growing from streaming while cable bills vanish, leading to a plane ticket with marigold trails to a Roku device.

What Happens After 12 Months?

After a year, you’ll have saved over $1,100. That’s not just money. It’s freedom. You’re not tied to a contract. You’re not paying for content you don’t use. You’re not stuck with a company that treats you like a number.

And your options keep growing. New streaming services pop up every year. In 2025, you can get niche channels for documentaries, anime, or indie films for under $5 a month. You can bundle them all or pick one at a time. You’re in charge.

Cable isn’t dead. But it’s no longer the smart choice. The math doesn’t lie. If you’re still paying $150 a month for TV, you’re paying too much. Switching doesn’t mean giving up TV. It means taking back control. And in 2025, that’s worth more than any channel lineup.

Common Questions About Cord-Cutting

Is cord-cutting really cheaper than cable?

Yes, by a wide margin. A typical cable bundle in New Zealand costs $150/month, or $1,800 a year. A smart streaming setup costs around $56/month, or $672 a year. That’s over $1,100 saved annually. You still get more content, better control, and no hidden fees.

Do I need a new TV to cut the cord?

Not necessarily. If your TV is from the last 10 years, it likely has built-in apps like Netflix and YouTube. If it doesn’t, a Roku or Apple TV box costs $50 and turns any TV into a smart one. No need to buy a new TV unless you want one.

Can I still watch live sports without cable?

Yes. Sky Sport Now offers live sports without a cable contract. You can subscribe monthly and cancel after the season. Other sports are on free apps like TVNZ+ or YouTube. You’re not locked in.

What if my internet is slow?

If your internet is under 50Mbps, streaming might buffer. But in Auckland, fibre is widely available. Most homes have 100Mbps or more. If you’re on a slow plan, upgrade. It’s cheaper than cable, and you’ll notice the difference.

Will I miss out on new shows without cable?

No. New shows launch on streaming services first. Netflix, Disney+, and Paramount+ release entire seasons at once. Cable often waits weeks or months. You’re actually getting content faster with streaming.

Next Steps

If you’re still on cable, take 10 minutes today. Check your last bill. Multiply your monthly cost by 12. Now add up your streaming subscriptions. The difference is your savings. That’s not a guess. That’s real money. You can use it for anything. The only thing holding you back is habit. Not technology. Not choice. Just the comfort of staying the same.

2025 isn’t the year you’ll finally cut the cord. It’s the year you realize you should have done it years ago.

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