Despite stagnant wages for U.S. workers, cable bills have been rising 6% per year and will pass $200 per month by 2020, according to a report from NPD Group, reports the New York Post.
The rising price of cable is due to the struggle between cable operators and programmers, who negotiate over which will receive the bigger share of the increasingly pricey payments, the story notes.
But the sharp increase in cable costs is convincing some consumers to cut the cord. "Cable faces big challenges on how to stay relevant,” said NPD analyst Russ Crupnick.
About 9% of TV homes cut cable last year, with another 11% planning to cut the cord, according to a January study from Deloitte.
On average, households spend $86 per month for basic and premium cable, excluding Internet and phone service. By 2015, that will rise to $123 and by 2020, the average bill will hit $200 per month, the piece adds.