Even with the advent of the internet and other technology platforms, cable television still manages to charge consumers a hefty penny. Many people are being creative on how they watch television, yet still companies are not lowering their prices to attract more customers.
According to a study found on MSNBC, the monthly rate for pay TV has been rising at an average of 6 percent annually and hit $86 a month last year for basic pay and premium-channel TV. This information was reported Tuesday by market research firm The NPD Group. The uptick in licensing fees – which are the fees cable and satellite providers pay for programs – is driving much of the increase, at a time when consumer household income has hardly budged. The group took this information from 1,000 U.S. households. With the climbing rates, NDP estimates that consumers will pay around $123 a month in 2015 and $200 a month by 2020.
The dramatically rising cost of pay TV could lead to more consumers cancelling service in favor of more affordable over-the-top video services and free-to-air broadcast, NPD said. With companies offering bundles and discount packages, trying to escape this expense might become nearly impossible.