August 15, 2008, Newsletter Issue #77: Why Are Cable Rates Rising?

Tip of the Week

Have you ever wondered why your cable bill seems to rise every year without having purchased additional pay channels? You aren't alone, and quite honestly, it seems that no one is anxious to take the blame on rising cable costs.

If you ask a consumer advocate about why cable television prices are rising he will most likely say it is because the cable companies like the profits they see from the cost increase. Really when you think about it, those who provide us with cable are running a big business and there isn't that much competition, so these companies know that people will pay a little bit more in order to keep their cable television.

If you ask the cable companies you will get a different story as to why rates must rise. Cable companies blame the higher cost of programming on the need for a rate increase. In order to keep providing you with your favorite popular programs they must charge you more to do so in order to keep up with inflation.

So, who is to blame for the rising rates in cable television? It seems it really is a two-sided issue. As for who is at fault, that really needs to left up to the consumer to decide for himself.

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