With more and more consumers cutting the cord and ditching their cable providers, these companies have to make up the lost revenue somehow. That apparently means increasing costs elsewhere, like your broadband.
Nasdaq reports that companies like Charter and Comcast have increased the cost of broadband services in recent months as one-time customers flee in favor of services like Netflix or Hulu.
A recent survey from Morgan Stanley found that cable companies have increased broadband prices by an average of 12% in the last year.
The increases have hit broadband-only customer the most, with the average bill now sitting at around $66/month.
In contrast, customers who have a broadband/cable bundled package pay on average $49/month for the broadband service.
Despite the double-digit cost increases, analysts believe the new prices might not be enough. Instead, companies would need to set their broadband-only prices to $80/month in order to offset the lost revenue from cord-cutters.
To that end, the companies will likely continue to increase their broadband prices.
by Ashlee Kieler via Consumerist
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