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Why is cable TV in the USA so expensive?


Why is cable TV in the USA so expensive?

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Cable TV is so expensive in the US and this graph is not going to come down, anytime soon. This is the debate we see online while comparing cable TV services with OTT platforms and various other free services that do pretty much the same job.

Due to the increasing bills and prices of cable and satellite operators in America, the customers now feel more convenient buying premium accounts on Amazon, Netflix, and other media apps to entertain themselves. Since they are more pocket-friendly when you reduce the installation charges and on-demand features etc. That way more customers are shifting from traditional cable to internet media services. The cable operators should revive their billing policy to relax their customers.

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In this article, we are going to walk you through the reasons why cable TV services are getting expensive with time. This read will enable you to comprehend the context and whether it is worth spending your money amongst all the other competitive options on the market. So, let’s get started:

  • To back the constantly up surging prices, various consumer reports reveal that there is a series of regulations that require updating according to recent technology updates and the addition of new services of customer care. Also, the fact that increase the prices is that the premium and several other channels as well charged exclusively. Cable companies have to pay the channel companies to keep the entertainment and information doze strong.
  • Different taxes and charges that are added in customer bills, in turn, impart a burden in the form of funds for the local fund-raising organization, educational programs for deserving children, and intellectual base channels.
  • A local cable company takes extra charges for providing services of local TV channels which may include ABC, CBS, sports, and FOX channels that work locally to entertain their customers. Their bills may include monthly installments of cable wire, modem, and kit you purchased on your first subscription. 
  • On customer complaints, federal and local government bodies decided to ban these extra charges in the bill by local cable operators. And recommended local franchise charges no more than 5%, which lessens the burden on customers.
  • One of the major reasons for extra charges is due to some exclusive services comprising sports and local TV channels that force the cable providers to increase the overall charges in their customer’s bill to pay a share of these regional TV channels. 

Just to give you an idea about the cable industry and how it works – broadcasting started evolving in the year 2000 in the USA, these broadcasting companies signed a contract with local cable operators and asked for their share to earn more profit. That contract is also referred to as “Consumer Reports Senior Policy Council”. CEO of a TV channel, Jonathan Schwantes shared his feelings about cable operators, he said that the cable industry had to charge more for their services. “It’s crucial as on some points, we can compromise to lessen their billing charges”.

Today, the cable industry has stern competition with online media which includes OTT platforms, social media, and various other apps, paid and free websites that provide quality content at lower prices.

Conclusive Notes

There should be a proper platform that addresses all cable operators, local TV channels, and Sports TV organizers and decides their shares in the bill. So customers could understand that what the company is charging more to add an extra burden on the bill. For instance, it is revealed by analyzing the whole cable industry that it is getting out of reach of the general public due to high pricing packages. You can still however reduce the prices of your cable service if you compare your bill, the offers you have, and what you consume. There are several packages designed to meet the basic needs to which you can downgrade or unsubscribe premium, add-ons, any additional feature that you can go without. It can also include getting your equipment and paying your bill on time.

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