Contrary to popular belief, this economy and the digital transition have actually motivated more people to subscribe to pay TV. You often hear those in the "future is now" camp say that people are looking for ways to save money and so they're looking to free internet TV alternatives and over-the-air TV, but it just isn't true. Our first indication of this was a few weeks ago when
Nielsen released a study that showed that about 25 percent of those who relied on antennas for TV, just switched to cable or satellite instead of getting a free converter box; and now the NPD group is reporting that the monthly per-capita spending on entertainment subscriptions is now up to $115 a month. At this point the internet video movement isn't looking that disruptive after all, but with all the technology out there, we just have to believe that something is going to disrupt the existing archaic model.
posted Nov 20th 2009 8:13AM
I think we can thank sports for that -- there is really no other good reason to pay for tv.
As long as Pay TV stays being the easiest way to get content to your TV, people will stick to it.
Rising unemployment likely drives some of the demand for cable.
If this shows revenues (as opposed to # of subscriber) then there's 2 reason for the increase:
1) the one-time increase of new subs who went from OTA to cable when the digital transition happened.
2) the huge increase in cable charges for existing customers in recent months. My bill has gone up 20% with no additional services.
@Scott
My FIOS bill has been identical for three years.
@Scott
I'd have to agree. That big spike is right before the original dealine for the cutoff.
The rise in the last 2 months is likely due to the lower HDTV prices (and the upcoming holidays will keep it rising) and a larger percentage of people are finally getting their new TVs. And they want HD content and they have to get more expensive packages for that.
@Scott
I called TWC in SoCal when I was late on a payment, told them that their service was too expensive and they gave me $15/month off for the next year on my triple package. So it's now just $105 per month plus the DVRs.
Since the economy has tanked I'd be shocked if Cable Cos have raised rates. Everything I've read and seen has suggested that Cable Cos and Phone Cos are lowering rates.
@Toffer
you either dont know what youre talking about or your mom pays your cable bill. mine goes up every month and has done so for at least the last 5 years. id love to see these lower rates you speak of.
That's because FiOS (like U-verse) is a relatively new entrant trying to gain marketshare and not an entrenched monopoly like the cable operators are in the vast majority of the US.