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'No doubt there will be a fierce debate among policymakers about how to fix it,' he said. His organization is gearing up for another showdown on the issue. They have market power and they abuse it.'

The reason they get away with this stuff is because there's insufficient competition. 'It even beat Google and Facebook in terms of return. 'That's an enormously profitable service,' Mr.

He said cable companies are earning 80% before interest, taxes, depreciation and amortization. Prices should be coming down, not going up. He said it's important to stress that all cable companies deliver broadband, and more than half their income comes from broadband, which is astronomically profitable.

'Consumers have only two possibilities for defending themselves against rate increases,' Mr. The rate of inflation during that time frame was 2.2%. Cooper at the CFA has been advocating for consumers against the telecom industry long enough to remember when Congress passed the Telecommunications Act of 1996, which allowed the industry to raise rates on customers with no oversight from government.įrom February 1996 to December 2020, he said, the prices charged by cable companies have increased by 250%, which comes to 3.9% per year. 'Internet hikes are something we can't control because there's not a lot of choice among providers,' he said.

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'Consumers have a lot of choice, but it can take a lot of work from them to put together a plan similar to what they used to get with a traditional paid TV cable package,' he said. 'Now people have dozens of choices that replicate what you used to get from a cable company and deliver it through the internet,' While consumers have a lot of choice on how they get TV, there's not a lot of choice on how they get online. , an editor at Yonkers, N.Y.-based Consumer Reports, said when it comes to consumer choice, TV and internet are not in the same ballfields. 'But there won't be any increase for anything we can control as far as our equipment and service.' 'The only increase will be what the content providers demand,' he said. , vice president of cable marketing for Armstrong, said there will be no rate increases in 2021 for internet service, but there will likely be an increase for TV service this year. , which serves residents in the North Hills of Allegheny County and in Butler County, is the only major cable TV and internet provider that hasn't yet announced a rate increase for 2021.

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The final season of HBO's 'Game of Thrones' cost parent company Warner Media $15 million per episode - in the neighborhood of a movie theater budget. The big media companies that own the TV networks - like Warner Media, NBC Universal, Viacom CBS and AT&T - also are faced with higher price tags for creating and producing content. The networks have their own rising costs, but they are willing to pay more for sports. Networks like ABC, Disney and ESPN require cable and satellite TV and streaming services like Hulu to pay for the rights to carry their channels. 'It's not as if cable is optional anymore, with having internet access at home being almost as important as electricity at this point.'īut who's responsible for the out-of-control costs?Ĭable companies point to rising fees they pay to carry TV networks. 'But what we still don't hear discussed more frequently is how to cut costs on what is becoming every household's biggest utility bill. 'It's normal for the average consumer to look for ways to save money on things like their electric or water bills through conservation efforts,' the report said. Using publicly available data from municipal utility providers and other sources, the home services comparison website found that the average household cable bill of $217 a month exceeds what families spend on most other utilities combined.Ĭable bills stay relatively similar across household sizes, whether it's one person living in a small apartment or a family of 10 living in a large house. Households are paying through the nose in order to watch their favorite TV shows, and a recent report by illustrates it with a sobering conclusion. 'What is becoming every household's biggest utility bill' The annual rate increase is part of an ongoing debate over competition and regulation in the cable/broadband business, and there will likely be more efforts to revisit the issue in the near future.