Cable TV Could Lose $1 Billion in Hidden Fees Revenue

Hidden fees on the typical pay-TV bill are the secret sauce that pad cable operators’ bottom line and state and local government coffers.

The average cable bill includes $37.11 worth of added monthly fees (excluding $13.28 in taxes) that aren’t part of the advertised package price, according to new data from KilltheCableBill.com. A separate report from Decision Data found the average domestic cable bill is about $217 monthly.

With nearly 600,000 video subs canceling service in the first quarter (ended March 31), the report contends pay-TV operators lost more than $22 million in revenue per month, which could result in $265 million for the year if cord-cutting trends continue. That revenue loss could skyrocket to $1.5 billion if video sub losses balloon.

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At the same time, the surge in over-the-top video platforms charging flat monthly fees of $15 or less continues. Netflix alone added more than 15 million subscribers in the quarter.

“The fact is that Q1 was devastating to cable companies, and I think that we’ll see when Q2 stats come out and a full quarter of quarantine has finished that the [coronavirus] pandemic just might be the final straw for cable TV as we know it,” analyst William Parker wrote in the report.

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One thought on “Cable TV Could Lose $1 Billion in Hidden Fees Revenue”

  1. Had no idea cable bills averaged so high per month, wow! No sympathy from me on cable TV ‘losses’, haven’t had cable TV for well over 2 decades and clearly haven’t missed a thing.

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