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There are a few reasons to drop cable.  The advances in streaming media delivery would be moot if not for the state of cable service itself.

More Channels, Less CompetitionEdit

The list of cable channels is growing every year, and so is the cost of cable.  According to a study published by the FCC in February 2014, basic cable prices rose by 4.8 percent between January 2012 and January 2013.  Over a 17 year span, prices increased at a compound average rate of 6.1% annually, but only .2% per channel overall (Baumgartner, 2014).  “This month marks the five-year anniversary of the Telecommunications Reform Act, which promised consumers lower rates for cable television,” said David Butler of the Consumers Union.  “This report shows what happens when you deregulate a monopoly before competition can take hold” (Baumgartner, 2014).  The act was supposed to introduce competition into the cable provider space, but has instead led to more media mergers than before, and less competition. 

Streaming Services On the RiseEdit

Attempts by providers to stay competitive by offering more channel choices have hurt customer wallets.   But many consumers are finding that there choice is abundant, and the price tag is usually cheaper once one leaves cable.  Instead of renting a set-top box from a cable provider, customers can make a onetime purchase of a digital player for as little as $35, and then purchase subscription services at a low monthly rate.  Amazon Prime, Hulu Plus, Netflix and Redbox Instant would cost $368 annually, combined (Gernster, 2013).  Factored in with other sources offering free video streaming (FOX, CBS, NBC, ABC, PBS, CNN, FOX News, ESPN and more) customers have an enormous amount of choices for on-demand entertainment at a fraction of the cost of a cable and DVR setup.  Forbes contributor Amadou Diallo stated that his annual bill for internet and cable services/fees came to $1932 per year, but dropped the total to $576 by switching to a Roku and paying his provider for internet service only.  That was a reduction of more than 70% (2013).

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