Can You Cut Your TV Expenses?

Seems like you keep paying more for less TV service? It’s not just you.

Your pay-TV rates are rising an average of 6 percent a year. For 2015, pay-TV subscription for basic service and premium-TV channels will cost the average U.S. household $123 every month, according to The NPD Group, a market research firm. Data showed only 16 percent of U.S. households do not currently subscribe to pay-TV services.

So what about someone who cuts the cord and cancels? Many are accessing programs from free-to-air broadcasts, free Internet TV, and more on-demand services like Netflix.

Said Keith Nissen, research director for The NPD Group, “As pay-TV costs rise and consumers’ spending power stays flat, the traditional affiliate-fee business model for pay-TV companies appears to be unsustainable in the long term. Much needed structural changes to the pay-TV industry will not happen quickly or easily; however, the emerging competition between S-VOD and premium-TV suppliers might be the spark that ignites the necessary business-model transformation of the pay-TV industry.”

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