Why is Cable TV in the USA so Expensive


Estimated in the USA, 94 million people use satellite and cable TV but now they are forced to leave cable TV services due to the constant buy gradual price hikes over the years. The government data analysis suggests that prices of TV services have risen two times faster than inflation in the past 10 years. Moreover, one more data provider company has confirmed the fact that the bills have hiked up to $100.98 in 2017 – a 53% rise from 2007. On the other hand, TV service providers put all the blame on the fees they have to pay to network companies to broadcast the channels. The fees cable companies had to pay to network companies have increased 2.5 times more which adds the burden on the service takers i.e. consumers. Meanwhile, the network companies are also suffering from increasing costs as they have to invest more money –  especially in sports; they have to pay large sums of money to sports leagues – that generate great views.

I think the reason for the price hike is that we don’t just get cable TV services from our providers. Instead, we get internet, phone, and TV services in one bundle which again can make it a bit costly. Also in the USA, there are very few choices to choose from. We have only a few providers – depending on the location. Mostly it is Comcast Xfinity or Verizon; and usually these three offer packages at the same prices. 

Spectrum TV is also one of the most favorite cable and internet services providers amongst more than forty states in the US. Why? Mostly because of some incredible policies no-contract, buyout option, free installation and so many other perks if you sign up with Spectrum – there might be some terms and conditions. Before anything else, the user must have Spectrum serviceable in their area to avail of the services. All perks get unnoticed and mean nothing if the service is not good but that department is well taken care of and the provider is so confident they didn’t bother putting their customers into the contract trap followed by heft termination fee.  


Cord-cutting might sound a solution to this problem i.e. rising charges of cable TV services but in actuality, it is not. As we are getting three services in one bundle and if we get the only internet from the provider the cost of the internet would be higher. Also, if we negotiate and take packages with less price the speed of the internet will not be enough to use Netflix or other streaming services. One home usually has many devices, also a lot of people are doing work from home due to Covid-19, and the internet connection with the fastest speed is essential which can eventually cost a lot of money. The reason for all this is that is how the providers have been doing their businesses. They don’t change or evolve as there is very less competition


Mostly in America, there is very little competition in terms of cable TV and the internet. I personally as a cable technician from New York City can assure you about the fact that a lot of buildings in New York City – the most urban city of the country – are not carrying FIOS or RCN. Also, they don’t even want to pay extra money to upgrade their buildings which is why companies are not evolving nor any noticeable competition is coming in the market. 


Conclusive Notes: 

However, cable TV companies are constantly working on improving their services, by introducing Apps, options to live stream to keep up with the trend and are very gratefully accepted the challenge of this time. Furthermore, they should focus on reducing the charges, and increasing more perks for their users through their already offered packages. The cord-cutters and never-cord league is shifting to online streaming services, they not only love their services for the kind of quality they are in whether we look at our screens or listen to the sound, but the option to watch at your own pace and as many time as you want without the interruption of ads is also simply unbelievable. Also, the fact that there is no contract nor termination or overcharges on anything except for the internet bill – which requires a separate discussion.