Study reveals accelerating costs of cable services across the country

by Andrew Roach on October 23, 2013

There has been a lot of pressure on the cable industry in recent years to try and find ways to keep the service popular against the increasing number of streaming platforms that are emerging over the internet.

However, the need to keep up to date with the new ideas has seen costs driven up and a new report has revealed that cable prices have made some of the highest jumps out of any household utilities in the last 4 years.

The figures, based on information from Statistics Canada, has revealed that cable costs have increased by 20% since 2009 outpacing other household bills such as phone and water.

It’s thought that the need to develop wireless technology and the introduction of streaming and playback features have attributed to the rising costs of cable across the country.

After the findings were released, it was surprising just to see how much cable has gone up over the past 4 years with the 20.4% increase in price marking one of the biggest increases in prices for basic household items.

The rise has doubled that of having a phone bill where prices have risen by only 9.1% over the last 4 years despite offering similar service or even being part of the same package.

It’s a staggering thought considering the similarities between the two services which have both struggled to compete against newer technologies such as mobile devices and online streaming that now play a big part in everyday life.

There can be some relief for customers though as it seems that the high prices have indeed reached their peak with inflation typically peaking at 7.4% back in 2011.

With the B.C. government altering their provincial sales tax and cable companies dropping back a little bit, the price rise has now dropped to just 2% since April this year.

It could drop even further in the next few months though as the federal government are looking for ways to ensure that prices stop increasing as much in the next few years. These plans were outlined by Industry Minister Jim Flaherty who stated to TV network BNN that cable prices were “out of line.”

The interview suggested that the government could be planning a strategy that could force cable companies to change the way they charge for cable services but no changes are expected until 2015 at the very earliest.

Cable is a service that has come under enormous pressure to adapt to cope with the changing nature of the media market and the industry needs to keep their prices in line for the future otherwise it could face a very bleak future a few years down the track.

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