The cable television industry has grown quickly and flourished in the consumer orientated society that was continually demanding something new. Cable companies have continued to expand to new areas and continued to expand their offerings of basic and premium channels. Most of them have added internet service and telephone services as options that can be bundled with their television services. But things are changing.
- Purchasing of Networks – We watch the HGTV Network and the Food Network without any thought about the business connections between these networks and the cable companies that deliver them into our homes. Money is changing hands between the two, either in the forms of fees or, on occasion, the purchase of a network by a cable company.
- Decreased Advertisement Income – The television industry in general is suffering due to a decrease in advertiser income. Internet advertising may be contributing to this, along with the increased networks and programming to share the advertising pie. Advertising is what funds television programming. As that income decreases, the networks start looking to the cable companies to make up the difference.
- Networks Leaving Cable Lineups – As networks and cable companies struggle to come to financial agreements, some networks have chosen to remove themselves from a cable company’s lineup. Shows that you may have grown accustomed to, may disappear from you list of choices.
- Increased Fees to Cable Providers – To keep networks in their lineups, cable companies are having to pay increased fees to the networks. Increased fees will be passed on the consumer in one way or another.
- Less Channels on the Basic Package – You may begin to see fewer channels listed on the basic channel list of your cable company. Moving network channels to premium status is one way that cable companies could attempt to recoup their increased costs.
- Larger Bundling of Channels – If you get frustrated with have to sign up for a whole new tier of programming in order to get the one channel you like, it may get worse. As cable companies move channels from basic to premium status, those premium packages will each contain larger numbers of channels.
- Higher Basic Cable Fees – The other option, of course, is to simply increase the basic cable fees to cover the additional costs of carrying the networks included in the basic package.
- Higher Premium Fees – Of course, if they don’t increase the basic fees, then it will be the premium channel fees that will be increased. One way or another, they’ll be collecting more money from their customers.
- Attempts to Curtail Internet Competition – Since it is television viewing over the internet that is the cable industry’s biggest competition, they are already doing their best to try and curb the competition. They are doing their best to make sure that television will not be watched free of charge, regardless of your source.
- Decrease in Cable Customers – Along with the increasing costs associated with television programming, cable subscribers are on the decline. Less people to pay higher costs, makes for a very bad equation.
All of the above trends have one thing in common, they mean more costs for cable TV consumers.