Netflix and Hulu vs cable: money matters

For years we left our homes and drove to a Blockbuster. Now millions of us simply turn on a tablet, phone or game console.

Netflix buried Blockbuster, and soon they will do the same to cable.

There are many pros to video streaming services like Netflix and Hulu, such as instant availability, access across multiple platforms and its wide array of choices.

But by far the most attractive thing about Netflix is its price.

The cheapest Netflix account is $7.99. And this is why cable will be buried 6 feet under.

Cable is far more expensive and increasing in price every year. Even Netflix’s most expensive option: $43.99 for eight accounts with DVD renting is far less expensive than any cable subscription I’ve seen.

I have to mention, however, that Netflix needs an Internet connection.

A cable company will sometimes give you a few channels for free with an Internet subscription.

So, a cable subscription around $70 will get you a handful of channels and Internet. If you want to watch anything worthwhile, your cable bill could be in the hundreds.

Only $8 gets you tens of thousands of movies and TV shows, not to mention exclusive-to-the-U.S. Netflix shows like “Derek,” “House of Cards” and “Orange is the New Black.”

The other downside is that Netflix-exclusive viewers are forced to wait for new shows to come out, sometimes for years. I, myself, am always a year behind in “Top Gear” because I only watch it on Netflix.

But for those with enough patience, waiting is worth saving money.

Experian Marketing Services of New York City did a survey of 24,000 U.S. adults and found 18.1 percent of households with Netflix or Hulu in 2013 cut their cable subscription.

“The share of households considered cord-cutters — those with high speed Internet, but no cable or satellite TV — is on the rise, especially among video streamers,” the study said.

I think in the next few years, cable companies will have to change drastically to compete with the red giant.