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The Great Migration From Cable To Satellite TV
Van Whitsett
What you are about to read should not come as a shock to you,
especially if you are a subscriber of cable TV.
Comcast Corp, the dominant cable provider in the nation, has
raised cable TV rates for the third time in three years The
rates will go up about 6 to 7 percent, depending upon where you
live. Other cable providers, like RCN, have also raised rates by
about 8 percent.
7 percent is double the rate of inflation. Comcast's prices have
risen three times faster than inflation since 2000.
Although cable price increases have moderated in recent years
from the double-digit hikes of the 1990s, many research analysts
predict that costs will keep going up.
"Operational costs" are the culprits for the rate hikes.
"Operational costs" include energy costs, improvements in
customer service and network maintenance. Cable companies have
millions of miles of outdated lines buried below ground, and are
in the process of converting their technology to digital, which
will be expensive. Comcast spent nearly $200 million in the past
year to maintain and enhance its fiber-optic network in the Bay
Area alone.
More Facts
Cable rates have climbed 40 percent in the past six years, from
an average $34.40 in 2000 to the $47.93 just announced for 2006.
During that same period, inflation increased 14.3 percent,
according to the federal Bureau of Labor Statistics.
Is it any wonder why the sale of satellite tv is increasing?
There are about 65 million homes nationwide with cable TV, a
number expected to decline to 61 million by 2008. DirecTV
accounts for 15 million subscribers and EchoStar's Dish Network
for 12 million.
Because satellite providers don't have to pay taxes levied by
local governments and feature smaller infrastructures, consumers
get more bang for the buck with satellite.
With cable, additional charges are typically assessed for
installation and equipment. These charges range from $30 to $80.
Satellite Tv offers free instulation, free movie channels, and
free upgrades, usually as an incentive to get customers to sign
up for their services.
More pros of a satellite dish.
* Digital picture means better quality * More flexible
programming options * Cost is cheaper per channel * Good
solution for those living in rural areas
According to a J.D. Power study, the average cost of satellite
service is about 4% less than cable. Satellite subscribers save
an average of about $2.00 monthly compared to cable.
So, as the rates for the cable companies continue to rise, you
can expect comsumers to continue the migration to satellite tv.
About the author:
Van Whitsett has published a number of articles, both online and
off. For more information about satellite tv, please visit: Discount Dish
Network.
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