The average monthly cable bill is currently $90 and projected to soar to $200 a month in 2020 reports The NPD Group a market research firm. With rates hiking and public distaste for the service of certain providers many are canceling their subscriptions and replacing them with other services, such as Netflix and Hulu Plus. According to MarketWatch, the only reason it would not be worth it for a consumer to cut the cord is if they enjoy watching new shows the day they premiere and want premium channels such as HBO and Showtime.
The cable industry is currently experiencing its worst year and it is not expected to improve, according to MarketWatch analysts. Many customers currently believe their cable bills are too high and there is an increasing amount of individuals opting to watching shows illegally. Craig Moffet, senior analyst at Moffett Nathanson Research, says,
Cutting the cord for most people is easier said than done unless they go pirate.”
In 2013, cable operators had a net loss of 113,000 subscribers in the third quarter. Analysts suggest contributing to the slump in cable television is a slow housing market and uncertain economy.
Furthermore, an article published by MoneyCNN notes that by forgoing cable TV a person could potentially save $1,200 a year. To fund a cable bill of $100 per month for 30 years would cost approximately $36,000. On the other hand, allocating that money instead into a 401(k) or IRA, with an interest growth of 5 percent per year, would allow a person’s retirement nest egg to gain an estimated extra $81,870 in 30 years.
As cable bills continue to climb, analysts expect more consumers to ditch their subscriptions and instead turn to cheaper alternatives.
Read more here- “Here’s What You’ll Save by Ditching Cable TV,” (Quentin Fottrell, MarketWatch)
Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.