Price gouging Americans is turning out to be catastrophic to many cable companies. Cable companies are beginning to feel the brunt of many Americans cutting the cord to cable companies and turning to online sources for their favorite television shows.
The FCC reports that cable television rates have been increasing by 6% annually and up to 10% annually on contract renewals. Cable companies are making a huge profit off their subscribers.
Cable companies are raising their prices, while decreasing the customer service experience. With the rising options technology offers, customers are feeling forced to cancel their cable service.
The rising costs of their local cable companies have forced people to find other options. Consumer spending still remains relatively flat as cable television has increased the cost of cable service as much as $50.00 or more per month.
As most business models, companies believe if they are in demand they can raise their fees and costs and people will pay to have their service.
What many companies fail to realize technology and fads are forever changing and as with other fads, cable television will be a dinosaur. The ever changing possibilities of the internet is putting a lot of companies out of business. Americans are turning to the internet to find more affordable sources of living for one low price.
Thinking about cutting the cord? Here are some online resources to help you cut the cord.
Adding Up Cable Replacements
A guide to cutting the cord on cable TV for good
How to Watch All the TV You Want Without Paying a Cable Bill