Over the last few years, the cost of almost everything seems to be going up, but so is the cost of cable TV. Now we are getting a good look at just how expensive local TV has become and how that is driving up the cost of both cable TV and cord cutting.
According to the American Television Alliance that says it is a voice for the TV viewer, the cost of local TV has gone up 5,359% since 2006. From $200 million in retransmission fees for locals in 2006 to $11.7 billion in 2019 and even higher now.
“Make no mistake, the double-digit gains being touted by these broadcasters are coming at the expense of consumers. The current regulatory environment enables big broadcasters to exploit loopholes that are responsible for thousands of consumer blackouts and massive annual price increases,” said ATVA spokesperson Cora Mandy. “Broadcasters increased retransmission consent fees by an overwhelming 5,359%, from $200 million in 2006 to $11.7 billion in 2019. This broken system does not work for consumers and has led to over 200 blackouts in 2023 alone. We urge Congress and the FCC to act to end predatory practices by broadcasters at the expense of subscribers and ensure broadcasters fulfill their public interest obligations.”
Since 2010 the price has gone up 1,529% for local TV through 2022. To put this all into perspective if a product was $3,32 in 2010 at the end of 2022, that product would cost $54.08. Inflation may be high but that is still higher than any other area.
You can see this impact your cable TV bills directly as Comcast now charges $31.25 a month for broadcast TV. If you add their RSN fee into that you will pay over $40 a month in fees on top of your cable TV bill.
Streaming services are also being hit by that and networks have made it clear they want streaming services like YouTube TV to pay more. To do that they are asking the FCC to reclassify these services as cable TV companies. This would allow them to demand more money from streaming services in a way they can not right now.
This all comes as advertising revenue continues to drop, impacting broadcasters. To help offset a soft ad market and the growth of cord cutting, they are asking for more money from cable and streaming services. The question now is at what point does that breakdown and it drive people even farther away?