Why Cable & Satellite TV Is Going To Cost You Even More

JamieBly

NEW YORK (CNN/Money) -- Your cable bill is going up this year -- and next year, and the year after that -- with no end in sight.

The average digital cable customer already pays almost $75 a month, according to research firm Centris. And many subscribers pay more than $100 to tune in to everything from "The Daily Show" to "Jersey Shore."

Customers see an average annual price hike of 5%, analysts say -- which means that in five years they'll be shelling out more than $95 a month for TV.

"There will always be an increase in cable bills," said Miller Tabak & Co. media analyst David Joyce. "Times are changing and providers have to make up losses somewhere, so consumers bear the brunt of it."

==INTERNET KILLED THE CABLE STAR?

Every industry player is faced with the threat of Web-based television, with cheap content available on sites like Netflix and Apple's iTunes store. Even better are new software packages which let users access thousands of satellite channels for free, using their existing internet connection.

Viewers can now watch all of their favorite shows from online services like VeryBest.TV, which offers full access to over 2,000 channels worldwide in English (and an additional 1,500 channels in other languages). Viewers only have to pay one time for the software, and then all television viewing and guide updates are free forever.

==BAD FOR ADVERTISERS, GOOD FOR VIEWERS

Advertisers are also unhappy about Internet TV, as sites like Hulu and VeryBest.TV offer very limited commercial interruption, noted Steven M. Rogé, portfolio manager at R. W. Rogé & Company.

The future of commercial time on Web-based platforms remains unclear, as the nascent medium continues to develop. However the days of both having to watch commercials AND pay big monthly fees are coming to an end.

Online: http://www.verybest.tv/

---

Story from US but sounds like it's going to spread all over... I'm only going to watch on the Internet from now on :mad:

amacachi

Not "going to spread", it has spread. Everything in that is old news and already applies in Europe as well.

Until the internet speeds etc. improve and costs come down (a dollar per show? Come on!) there'll just be a gradual shift. The only reason I have subscription TV is for sports because a lot of what I watch isn't available at all online, or is legally available but only from Australia so it pretty much doesn't work, or is easily available but my connection sucks balls.
I'd be willing to be that anyone in America paying over the average is doing so for sports.
How much is cable in the USA anyway? Basic cable + HBO/Showtime/AMC? I doubt it touches the $75 mark mentioned in that article, with sports subscriptions dragging the mean way up.

Minstrel27

When it costs too much people who cannot afford it will cancel. It's not rocket science.