Cable and satellite TV providers have been known to raise their rates year after year, leaving many customers frustrated and seeking alternatives. According to a report by Leichtman Research Group, the average monthly cost of cable and satellite TV services in the US increased by 74% between 2000 and 2020. In this article, we will explore why cable and satellite providers tend to raise their rates and the impact of these increases on customers.
If you operate a business it can be really tough to find a TV solution that is affordable, legal, and can positively impact your business.
Why do cable and satellite providers raise their rates?
There are several reasons why cable and satellite providers raise their rates. One of the main reasons is the rising cost of programming. Providers have to pay fees to carry channels and content from broadcasters and content creators. As the cost of programming increases, providers pass on the cost to customers through rate increases.
Another reason for rate increases is the investment in new technologies and equipment. Providers need to continually invest in new technologies and equipment to improve their services and stay competitive. These investments come at a cost, and providers often pass on the cost to customers through rate increases.
Finally, and most commonly, providers tend to raise their rates to improve their profitability. Cable and satellite providers operate in a highly competitive market, and once they have you subscribed it is easy for them to raise your bill. Most subscribers will not notice the bump in their rates until months after it starts. And even then the majority of subscribers will stay subscribed despite the rising cost.
Impact on customers
The annual rate increases by cable and satellite providers can have a significant impact on customers. According to a survey by Consumer Reports, 30% of cable and satellite TV customers who were surveyed said they were not satisfied with their service, primarily due to the cost.
The impact of rate increases is also felt by customers who remain with their providers. As rates continue to increase, customers may be forced to make difficult choices, such as cutting back on other expenses or reducing the number of channels they subscribe to. For some customers, the annual rate increases may be the last straw, leading them to cancel their subscriptions and seek alternatives such as streaming services.
Alternatives to cable and satellite TV
As the cost of cable and satellite TV services continues to rise, customers are increasingly looking for alternatives. One popular alternative is streaming services, which offer a wide range of content at a lower cost than cable and satellite TV services. According to a survey by Deloitte, 80% of US consumers subscribe to at least one streaming service, with 55% subscribing to two or more services.
Another alternative is over-the-air TV, which provides access to local broadcast channels for free. Customers can purchase an antenna and receive local channels in high-definition quality without paying a monthly subscription fee.
But what if you are a business?
You might be surprised that businesses have even less options. Netflix, Hulu and even YouTube are not permitted to be used inside of businesses, but there are a few alternatives that have come up in the past few years to fill a business’ need for quality licensed TV.
Alternatives for Business TV Customers
There are two alternatives to Cable and satellite TV for businesses:
1) Digital Signage
2) Custom TV Networks
Digital signage is exactly what it sounds like. They transform your TV into a digital sign. This can be great if your visitors are only at your location for a 20-30 seconds, but it can be very boring if placed in a waiting room or in an area that customers have to be for an extended period of time.
Custom TV Networks on the other hand contain fully-licensed television shows, designed to be played inside of businesses. The pioneer, and current industry leader of such networks is It’s Relevant TV who also operates RELE.TV. These networks combine the entertainment value of broadcast TV with the marketing power of digital signage and custom videos.