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The Cable Industry Isn’t Stupid, Right?

The Cable Industry Isn???t Stupid, Right?
Photograph by Antonin Kratochvil/VII

We’re rapidly moving toward a future where cable broadband service is the predominant choice for consumers who want fast Internet access. But in light of a study that predicts $200 bills by 2020 for the pay-TV portion of cable, I have to wonder: Are the cable guys the idiots, or are the consumers?

The NPD Group put out a survey on Tuesday that suggested monthly pay-TV rates could reach $200 by 2020, up from the current average rate of $86. The analysts at NPD credit rising content-licensing fees and the average 6 percent rate increase that cable companies jam down users’ throats each year.