Many of you may be asking but probably don't have the correct answer why are cable and satellite TV services so expensive I can remember a time within last 20 maybe 15 years my dad had cable and it was only 25 dollars a month and included about 80 channels and it was pretty inexpensive for most people nowadays cable is upwards of seventy five a hundred sometimes $150 just for your basic cable channels like ESPN,CNN .
why is this the case that came? It's just so expensive all of a suddenly. Most of you are probably thinking that. That's that cable and satellite companies are very big companies that are just taken advantage of people jacking up their rates because what else you going to do go to an antenna, you can't get ESPN on the antenna that's not really the case and for me to explain why cable is so expensive. I'm going to explain how a cable system works. Let's say there's a cable system that offers 50 channels on the lineup in each of the companies that owns individual channel is paid 50 cents per subscriber of the cable service that
Make the
average cable bill about $25 a month not including other fees, but let's just
say for Raishin purposes. It's $25 a month in this scenario. Now, imagine the
scenario where the owner of maybe two or three of the networks on your cable
system decides. Hey instead of charging fifty cents per subscriber our channels
a pretty valuable. Let's take Disney espn/abc. For example, we're now going to
charge a dollar per subscriber that would change the bill from roughly $25 28
dollars a month and most of you are probably saying that's not a big deal why
is cable so expensive now. Well the scale has Has completely changed in terms
of the owners of these TV stations. Over the past two decades we used to be
smaller independently owned TV networks by maybe several dozen networks has
gone down to about four or five main media companies that control roughly 90%
of the TV that we see keep in mind that this graphic was created prior to
Disney purchasing 21st Century Fox. So most of the networks in the upper left
corner are now owned by Disney when a company owns a dozen or more TV networks.
They have a More leveraging power in terms of how much money they can pull out
the cable and satellite system. So let's take Viacom. For example, they
own 12 networks on your cable or satellite service and they want to jack up the
rates by a dollar per subscriber. Most likely the cable company is going to
give in to that because they don't want to lose 12 channels. And then I have a
whole bunch of subscribers complain that the channels aren't on the line up
anymore. What makes the situation even worse is when the TV networks pull their
stations because Because the cable company won't give in to the rate increase.
It's really just a cable or satellite service. The standing up for their
customers against this unfair increase what usually happens is the big media
companies start running these messages on all their stations saying DirecTV
pulled your favorite station. Make sure you call them up now demand to bring it
back after this happens the cable and satellite services are usually flooded
with calls from their customers demanding the bring the channels back when
reality the customers are demanding the rate increase to happen. So then in a
bring the channels back and the rate increase is passed on to the customer even
if you don't See a network pulled from your cable line up. It doesn't mean that
these retransmission increases aren't happening take ESPN. For example back in
2011. They charge about $4 per subscriber to be on a cable line up. They don't
charge about $9 per subscriber cable and satellite services have virtually no
negotiating power when it comes to the these at these big media companies charge
for the very popular Channel such as ESPN these channels are so popular that
there's no way that they could get in any kind of dispute.
The owner and risk possibly lose an ESPN for a few days and a bunch of their subscribers dropping none. Alternative. Oh, you're probably saying why doesn't my cable company just allow me and Alec are option to purchase just ABC NBC CBS and ESPN. Those are the only channels I watch why can't they do that again? It goes back to the big media companies that own dozens of networks most times. They required a cable or satellite service to carry all of their major cable networks on a single tear and not break them up. So that way they get the most money per subscriber. So exceptions are made for a lock our options such as As local channels, for example Disney owns and operates several ABC stations across country and larger markets and they're okay with the cable company having them just on a basic local only tear but if someone want ABC NBC CBS and ESPN Disney would require that they also get ABC family and E FX all the networks that they own the nutshell the reason why cable and satellite services are so expensive is not because your cable companies. And rip you off and they're greedy it has to do. The big media and the consolidation of these media companies when you have one media company that owns dozens of networks. They have so much more negotiating power in terms of how much they can charge these cable companies versus if there were dozens of companies that own maybe three or four networks each. The man is is not going to stop anytime soon, either the cost of cable and satellite services is going to continue to go up as the years go on because these big media companies are just going to continue to jack up the Grapes and the cable companies will have no choice but to pass it on to the consumer. If you're sick and tired of paying into this broken system that requires you to pay for all these channels that you don't watch do something about it cut the cord and get a decent antenna get your local channels and then supplement some of those cable channels that you watch through a package like sling tv YouTube TV or Philo TV those over the top Services star just $20 a month and they use your home's internet service to stream these channels directly to your TV using a set-top box like a Roku fire stick if you have a smart TV You don't even have to purchase one of them. It was her looking through the channel lineup of Sling TV and YouTube TV and you find yourself saying hey, I got all the channels. I want except one or two. I don't see any on this lineup or I don't see Big Ten Network on this lineup. I can't cut the cord as a result. You have to ask yourself if you're paying $100 a month right now for your cable and you can cut it down to $25 a month. Are those two or three channels work that $75 a month past 900 dollars a year. This is a question that everyone who subscribes to a cable or Satellite service should ask themself will I survive without those one or two? I was especially if I'm getting an extra 75 dollars a month and the answer is yes, you will survive at first you might say. Oh, I'm missing 16 and Pregnant or whatever show you tune into on a weekly basis. Most of them are available on Hulu or Netflix anyway, but you'll discover the savings are completely worth it people stop throwing away your heart on mind a big media companies that don't deserve it cut. The cord is one of the best things you can do. I cannot tell you how happy people are when they see their bill go from $100 to Five dollars a month Less time in front of the screen and living their lives to the fullest as
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