While internet tv technology and choice continues to rise, the prices are falling. For cable though its a different story, a report from the Bureau of Labor Statistics shows that during the last 10 years, the cost of cable and satellite services has increased by an inflation busting 43%.

During that same period, mobile phones, televisions and internet services have all dropped in cost.And although cable companies argue they are having to bear the cost of supply sophisticated DVR’s and HD channels, but does this justify the never ending increases?

The biggest reason for companies demanding ever higher subscription costs appears to be that the viewer is putting up with it. The price increases are tolerated because it is a luxury they cannot live without. Although internet tv is a viable alternative, the reports of cord cutters moving to online tv may have been a little premature.

Mike Paxton, a TV analyst for research firm In-Stat said:- “Historically, particularly when the economy is poor, one of the last things households will consider cutting is their pay TV. They will cut back on vacations, food costs, won’t go out to eat, won’t go to the movies, turn the thermostat up or down – but in-home entertainment is one of the last things they cut. The cord-cutting phenomenon has been kind of a myth.”

Viewers are creature of habit and like to stay with what they have, especially as it is so much hassle to switch TV providers. Currently, whilst online tv is not so out there, the only other alternative for non techy people, is the basic free over-the-air TV, with a miniscule number of channels.

The number of people who pay for TV has remained relatively stable, but cable has been steadily losing ground to satellite services and also telephone companies’ services, like U-verse. Cable lost about 1.1 million subscribers last year, according to In-Stat, while satellite gained 1.2 million and telephone companies gained around 2 million extra subscribers.

People generally switch for three reasons, Paxton said: One, they’re angry at their current provider. Two, they’re looking for a better deal. Or three, they want to bundle services together – like Internet and TV – and want the convenience of a single bill.

Although channel numbers have increased over the years, the average cable viewer has a regularly channel number they watch of between 12 and 15 . This number has remained constant for many years.

The cable companies will have to adapt to keep an increasingly restless subscriber base happy. Users will be looking to receive content both on the internet and via mobile phone, this is already in the process of happening from some suppliers like Comcast offering an online service.

“We’re at the edge of experimenting with those types of delivery models,” said In-Stat’s Paxton. “The pay-TV service providers don’t want to be left on the side of the road.”

And the bad news from all you unhappy subscribers is that the cable and satellite companies are aware that there is still more leeway in price before consumers refuse to pay, that figure is beleived to be around $100 a month for TV services. I remember working for a company that wasnt too concerned about losing customers so long as we had more joining up. The cable companies probably work on a similar principle, so get watching internet tv, the choice is rising every day, much of it is free and soon you will be watching it even if you dont realise. The alternative is to get stung for even higher subscriptions.

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