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.
What do you think about the rising cost of cable? What’s your solution?