One quick way to fix losses in revenue is to raise rates to increase short term profits. Three major cable companies are going to increase their rates, and it will likely affect not only new but existing customers.
In 2016, both DISH and Time Warner Cable are set to increase their monthly subscription costs.
How much is my cable bill going to increase?
DISH is set to increase their rates up to $5 a month.
DirectTV is looking to increase their fees up to $8 a month.
Time Warner Cable might end up as high as $10 a month.
IBT is reporting that those most likely to see these rate increases live in areas where there is less competition from other cable television providers. In other words, if you don’t have the option to switch to a new service, it’s likely you’ll see one of these small price increases on your 2016 cable bill.
With declining advertising dollars on television, coupled with an ever-growing trend of people cutting the cord, increasing the cost of cable might be the only short term solution to keep profits. The cost of content continues to rise as well, with more competition for show creators to choose from. No longer is being an original series on one of the major streaming services such as Netflix or Amazon Prime a sign of diminished quality. Instead, these options have often offered valuable alternatives to network television with some major perks including more creative freedom and less beholden to advertising revenue.
Keep an eye on your cable bill in the next few months to see if you’ve been affected by the increased rates.