Millions of Americans have cut the cable cord over the last few years and millions more are expected to soon. That's because when it's done right, you can save hundreds of dollars per year by eliminating those costly cable bills. (PssT! Check out our streaming service channel line-ups comparison chart for a helpful resource.)
This popular trend has left one industry reeling and looking for ways to make up for lost revenue. You're not going to like how they're doing it.
Why these costs are rising unexpectedly
Of course, the hurting industry that we're talking about is cable providers. The mass exodus of customers has really affected their bottom line. Nasdaq said that cable stocks have plunged ahead of third-quarter earnings due to cord cutters.
In an effort to recoup those losses, companies like Charter and Comcast are increasing prices elsewhere. More specifically, your broadband access. A survey conducted by Morgan Stanley showed that cable TV companies have increased broadband prices by 12 percent over the last year.
The average monthly bill for broadband in the U.S. is now $66 per month for those who only pay for high-speed internet and don't have a TV package. One analyst said last week that cable companies will need to raise broadband-only prices to at least $80 to counteract the loss of TV subscribers.
Cable companies are giving better deals to those who still pay for TV. Customers who have a broadband/TV package pay about $49 per month for broadband.
But where does it end? How high will monthly costs for broadband go? This shouldn't discourage you from cutting the cord, you can still save money if you know what you're doing. For help, click here to learn the best way to save money cutting the cord.
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