Even as a growing number of consumers are opting out of traditional pay TV in favor of over-the-top services and other streaming alternatives, the price of the average cable bill is once again on the rise.
“Time Warner Cable Inc., Comcast Corp., Dish Network Corp. and AT&T Inc. are all planning to increase their prices early next year — at the risk of turning off more subscribers fed up with the rising cost of television,” BloombergBusiness reports.
The companies are citing rising carriage costs for broadcast and sports networks, the story notes.
“To attract viewers who are migrating to Netflix Inc. and Amazon.com Inc., programmers are spending billions of dollars on developing scripted shows and on the rights to air sporting events — one of the last things that people still watch live,” Bloomberg reports. “They are passing on those costs to cable- and satellite-TV providers by charging higher fees to carry their channels. Those providers, in turn, are passing on some of those costs to consumers.”
The report notes that the average price of a cable bill has gone up at an annual rate of 5.9% since 1995, hitting $66.61 last year.