Consumers are growing increasingly concerned about rising television and satellite prices across the U.S.
Over the last decade, prices for television services have risen almost twice as fast as inflation according to government research. Since 2007, TV bills have increased by 53 percent. Last year, they averaged $100.98.
Why are prices rising? Much of it can be attributed to the rising cost that TV networks are charging to host content. At the same time, consumers are demanding more premium content than ever before and so it’s proving to be difficult to satisfy both needs.
Sources indicate that cable companies are paying about 2.5 times the amount they were paying in 2007.
The issue, though, is that customers are starting to push back. Over the top content services like Netflix offer cheap, high-quality packages loaded with premium shows and movies. Consumers no longer have to rely on their standard packages, especially with live sports now being offered online by some providers.
To prevent more cord cutting, cable companies are advised to find alternative methods of making up for rising network fees. Instead of raising prices and punishing consumers, find other ways to make up lost causes.
A growing number of providers are now looking into broadband Internet service, for instance, so that they can keep profiting from customers that stream large amounts of content over their networks. By offering premium Internet service, companies can stay competitive across a wider portfolio of offerings.