Average Monthly Cable TV Subscription Bills May Top $200 by 2020

April 10, 2012 - Press Release from The NPD Group

According to research by the NPD Group on Cable or Satellite TV bills, the average Cable TV service in the US cost $86 (2011), and it is expected to keep on rising. This is due to the increase in television licensing fees. Mathematically, the Cable TV monthly rate increases at an average of 6 percent every year, while the consumer household income still remains at its normal level.

Based on information received from a recent “Digital Video Outlook” report by the NPD, only a few citizens of U.S. households don’t subscribe to Cable TV services. Although an increasing amount of people don’t use Cable TV services, the total Cable TV subscription price has not reduced. The recent mortgage crisis has lead to a great increase in housing vacancies, and due to the bulk payments, there are many empty houses that still retain their Cable TV subscriptions.

Keith Nissen, research director of the NPD group explained in an interview that in the long run, the normal affiliate-fee business model for Cable TV companies is unendurable. He also added that wanted Cable TV changes will not come quickly or easily but the potential competition between S-VOD and premium-TV suppliers might bring about the necessary transformation of the Cable TV industry.

Many Americans have begun cancelling their Cable TV subscriptions due to economic considerations and they are now watching their Television programs via internet TV services, free-to-air broadcasts and cheaper subscription video-on-demand (S-VOD) services like Netflix.