According to a recent forecast, you may want to start saving your pennies now to pay your cable TV bills come 2020.
The NPD Group research firm released a new forecast last week for where pay TV bills are headed, and it isn’t pretty. It seems that the average cable bill has been jumping by six percent a year, and it currently shows no signs of slowing down. In 2011 the average bill in the United States was $86, and is projected to hit $123 per month in 2015 and $200 in 2020. “The increase sounds slight, but it’s really not,” entertainment industry analyst at The NPD Group Russ Crupnick, told Reuters. “Consumers are going to have to decide when they get that bill for $100 or $200 if cable can be one of their most valuable entertainment expenses going forward.”
Before you head to your local cable company office with your pitchforks and torches, however, you should know that it isn’t them you should be blaming. “As traditional streams of revenues like DVDs shrink, content creators are going to look for other areas to make up the difference,” said Crupnick. He went on to add, “It’s going to cost more to license content across all of the entertainment categories.”
Earlier this month a study showed that the number of people cutting the cable cord to use services such as Hulu Plus and Netflix Watch Instantly was escalating, but before you think that may be your salvation, realize that the potential for them to raise prices exists as well. If the content creation companies are raising the the licensing fees for cable companies, the odds are definitely in the favor that the same will be done for streaming media services.
Any way you slice it, it appears that watching your favorite TV shows is going to be getting more expensive over the next eight years or so. I don’t know about you, but the idea of paying $2,400 a year to flip through channels and say, “There’s nothing on!” isn’t exactly appealing to me.