? Will cable TV ever get cheaper?
#1
06-18-2012, 09:33 AM
? Will cable TV ever get cheaper?
Will cable TV ever get cheaper ?
By MSN Money
While the fierce competition between cable companies and online video services should be good for consumers, experts say it may end up raising both TV and Internet bills.
The Justice Department is conducting a wide-ranging antitrust probe into whether cable companies collude to restrict competition from online video providers like Netflix, The Wall Street Journal reports. At issue: Cable companies want to cap data downloads among heavy users, which would affect those who've abandoned pay TV in favor of streaming shows and movies over the Internet. <!--EndofExcerptMarker-->
Though more people have "cut the cord" in recent years, analysts say it hasn't resulted in the price cuts many expected. "Cable prices won't go down unless cable investors get hurt, and that will only happen when even more customers cancel their cable," says technology analyst Jeff Kagan.
Some 9% of homes with televisions cut their cable services in 2011, while an additional 11% said they planned to do so, a survey released by Deloitte earlier this year found. (Post continues below.)
But despite this, cable prices doubled over the past decade, Kagan says. Customers have been complaining about price increases for years, he adds. "This is backwards compared to other technologies, but cable television pricing continues to go up," he says.
And prices may double again
in the next decade. Keith Nissen, research director at NPD Group, predicts bills will hit $200 a month by 2020 -- up from the current average of $86.
In light of the Justice Department's investigation, cable companies may look for other ways to maintain their revenue and market share, experts say. One option: Do what cellular networks are doing and move toward usage-based pricing for broadband Internet, says Craig Moffett, senior analyst at Bernstein Research.
The shift to usage-based pricing would be good for the cable operators, but bad for consumers who want to watch more on-demand television online, he says. This would also slow the pace of innovation within the industry, he says, and make it more difficult for Apple or Google TVs to get widespread and cost-effective access to cable video feeds.
TV and cable networks also have no interest in lower prices, experts say. "The companies are caught in the middle and have to pay more year after year to networks," says Kagan. (Netflix, Time Warner and Comcast did not respond to requests for comment.) Cable companies have also responded to the competition with their own new tech offerings, such as apps that allow viewers to watch TV on multiple devices and video-on-demand, says Brian Dietz, a spokesman for the National Cable & Telecommunications Association.
Google and Apple -- which both have streaming video offerings -- may be in the best position to upset the status quo. "These two companies changed the wireless space," Kagan says. "Perhaps they can change the television space as well."
More on SmartMoney and MSN Money:
- With so many people cutting the cord, you'd think cable TV would now cost less, not more. But experts say that's not likely.
- Member's what type of TV connection do you have ? Cable/UVerse/Broadcast/Dish ? Are you happy
with your service & the cost of it ? Please post & share.. - Thank You
By MSN Money
While the fierce competition between cable companies and online video services should be good for consumers, experts say it may end up raising both TV and Internet bills.The Justice Department is conducting a wide-ranging antitrust probe into whether cable companies collude to restrict competition from online video providers like Netflix, The Wall Street Journal reports. At issue: Cable companies want to cap data downloads among heavy users, which would affect those who've abandoned pay TV in favor of streaming shows and movies over the Internet. <!--EndofExcerptMarker-->Though more people have "cut the cord" in recent years, analysts say it hasn't resulted in the price cuts many expected. "Cable prices won't go down unless cable investors get hurt, and that will only happen when even more customers cancel their cable," says technology analyst Jeff Kagan.
Some 9% of homes with televisions cut their cable services in 2011, while an additional 11% said they planned to do so, a survey released by Deloitte earlier this year found. (Post continues below.)
But despite this, cable prices doubled over the past decade, Kagan says. Customers have been complaining about price increases for years, he adds. "This is backwards compared to other technologies, but cable television pricing continues to go up," he says.
And prices may double again
in the next decade. Keith Nissen, research director at NPD Group, predicts bills will hit $200 a month by 2020 -- up from the current average of $86.In light of the Justice Department's investigation, cable companies may look for other ways to maintain their revenue and market share, experts say. One option: Do what cellular networks are doing and move toward usage-based pricing for broadband Internet, says Craig Moffett, senior analyst at Bernstein Research.
The shift to usage-based pricing would be good for the cable operators, but bad for consumers
who want to watch more on-demand television online, he says. This would also slow the pace of innovation within the industry, he says, and make it more difficult for Apple or Google TVs to get widespread and cost-effective access to cable video feeds.TV and cable networks also have no interest in lower prices, experts say. "The companies are caught in the middle and have to pay more year after year to networks," says Kagan. (Netflix, Time Warner and Comcast did not respond to requests for comment.) Cable companies have also responded to the competition with their own new tech offerings, such as apps that allow viewers to watch TV on multiple devices and video-on-demand, says Brian Dietz, a spokesman for the National Cable & Telecommunications Association.
Google and Apple -- which both have streaming video offerings -- may be in the best position to upset the status quo. "These two companies changed the wireless space," Kagan says. "Perhaps they can change the television space as well."
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- Get cable TV on the cheap
Last edited by Space; 06-18-2012 at 09:36 AM.
#2
06-18-2012, 09:46 AM
Join Date: Sep 2008
Location: Southeast PA
Posts: 25,136
I have Comcast (well.. starting Wed). For most TV Channels, HD DVR, HD in my bedroom, and basic internet speeds my bill is going to be around $120/mo.
It's crazy! HD should not cost extra like it does. You should just have cable, and if you can have the HD hookups on your box you should just be able to plug it in. No need for them to charge an "HD Fee" every month.
It's crazy! HD should not cost extra like it does. You should just have cable, and if you can have the HD hookups on your box you should just be able to plug it in. No need for them to charge an "HD Fee" every month.
#3
06-18-2012, 10:03 AM
..Thanks `Mike for sharing & Wow, that's expensive (I think).. I don't have enough time to watch TV to invest that much money. I've never had anything, but broadcast (antenna T.V connection). I do enjoy T.V., but I just rather be outside when I do have any time `off...I hope in my future when life slows down that I can have a Bigger T.V., and the time to enjoy so many great programs & movie's that are available.
I wonder what other member's are paying for their service ($'s) ? ?
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