Posted in: Media Industry

$200 Cable Bills By 2020? 9 Percent Of US Households Ditched Cable In 2011

Cable Companies And 200 Bills

If you’ve been complaining lately about the cost of gas at the pump just wait until 2020, that’s the year that a recent forecast report predicts the cost of cable TV will run you $200 per month.

The report cites currently cable price increases which have skyrocketed by 6 percent annually.

In issuing the forecast Keith Nissen, research director at research firm NPD Group revealed:

“As pay-TV costs rise and consumers’ spending power stays flat, the traditional affiliate-fee business model for pay-TV companies appears to be unsustainable.”

Among the biggest issue is the profit sharing that occurs between cable providers and programming creators. Both sides have been fighting for years over who should receive the biggest share of revenue from cable TV subscribers.

Much like myself tens of thousands of consumers have already cut cable from their budget, during instead to Hulu Plus, Netflix, Amazon Prime and other video services that are cheap and offer on-demand viewing from various devices, even while a subscriber travels.

According to the report, nearly 9 percent of TV homes cut the cable in 2011 with 11% of homes planning to watch more TV online.

The current household bill for cable TV is $86 per month for a combination of basic and premium channels. By 2015 that number is expected to reach $123 and then $200 by 2020. It should be noted that the pricing structure does not include internet or phones services which could easily push the monthly cost over $300.

Will you ditch your cable TV provider if prices continue to increase at an average of 6 percent annually?

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