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Why Is Cable So Expensive? (Top 10 Reasons)

By Brittany Olizarowicz March 14, 2021

Man watching television using TV remote

 

When your bills come each month, do you ever ask yourself how they got so expensive?

Chances are the pricing is bothering you, but you may just assume there is nothing that you can do about it.

Luckily, there are a few things you can do and some reasons behind the pricing being so high.

If you are curious about why cable is so expensive and ready to make a change that works better for you, we have all the answers.

Here are ten reasons cable is more than you expect it to be each time the bill comes.

 

Why Is Cable So Expensive? (Top 10 Reasons)

 

1. Losing Customers

Frustrated upset young woman

 

Cable companies are losing customers, and it is happening quickly.

People are realizing that they can get much better deals purchasing access to entertainment in other ways.

In addition, many are realizing that the price for cable is just not worth it.

Although some people may like a certain show, they just can’t justify the expense of what sometimes can add up to a few hundred dollars per month, just to watch a few hours of TV.

There are many other streaming options that will give you access to television, even if it is a bit different than typical cable.

Losing customers without losing expenses or employees is making it difficult for cable companies to survive.

There is so much overhead, and they need a large customer base to be able to make it.

Without this, the cable company gets into some financial trouble, and this ends up costing quite a bit of extra money to the end user.

With this trend becoming more and more popular, it may be time to start looking into some cable alternatives now.

 

2. Installation

repairman installing tv set in apartment of customer

 

When you have cable installed, it is quite costly.

Depending on which provider you choose and the type of package you choose, the installation prices can get out of hand.

Sometimes there are promotions to make it more affordable, but it’s hard to come up with several hundred dollars at a time just to have the cable company come out and install.

Of course, even after this installation, you are going to have so many high expenses that it’s tough to draw the line at what makes sense.

The installation prices for cable should not even be a thing, but in many areas, they are.

Considering the monthly recurring revenue that a cable company is going to get from you, it’s hard to imagine how they can also charge you to install the cable.

The installation of the cable can also take hours, and you have to make sure that you are home and ready for them when they come to install.

Essentially, you will pay a lot of money for something that ends up being even more costly as time goes on.

Pay very close attention to these fees when you sign a new cable contract.

 

3. Package Bundle

Spectrum website displayed

 

The package bundle is supposed to be saving you money, but there are times when it could be costing you money.

Sometimes you have to choose a package bundle because it is all that is offered by the cable company.

These package bundles will likely include your television, your internet, and maybe even a home phone.

The problem is that, although you may save money on your internet and cable, you might not want a home phone.

Instead, you are forced into this package deal, and in the long run, it ends up costing you even more money.

 

4. Fees

Cubes dice with fees on wooden background

 

When you picked out your cable package, you were probably sold on the idea that it would cost something like $49.99 per month.

This sounds like a great deal until you get your first bill, and it is $63.00.

When the cable companies advertise these impressive low monthly payments, they don’t inform you about the fees that you are required to pay.

These fees and taxes add up quickly, and at the end of the month, they will completely change what your monthly package choice looks like.

Many people would not have signed up for the same package had they known what the final number was going to look like.

Fees are high in the cable industry, and when you get a quote for service for your home, make sure you ask about what your total bill will look like.

If you don’t ask, chances are they won’t tell you, and you will end up with some major issues being able to afford your cable package long term.

 

5. Wrong Package for Your Needs

Guy Switching Channels Watching TV

 

Another issue when it comes to the cable being so expensive is that you may not be using the proper package for your needs.

If you have not shopped your cable in a while, you should do so.

Companies are going to add packages to their lineup all the time.

Sometimes these are not open to preexisting customers, and other times, they are.

The package that you need for your home will probably change as the people in your household develop new interests or age.

The general rule of thumb is that you should check on the pricing that you are paying at least once per year.

Call the cable company and ask them if they have any new packages in your area that may suit you better.

Make sure that they know you are open to losing some channels if it means you can save money.

If you end up losing ESPN, but you never watch sports, this won’t be too much of a concern for you.

Sometimes the cable is too expensive simply because you have not shopped it enough.

 

6. Negotiating

Negotiation

 

Another reason your cable may be too expensive is that you haven’t negotiated it with your cable company.

Are you a great payer who takes care of your bill on time every month?

Have you been a loyal customer for the past ten years?

There are discounts that some companies have in place for those who have issues with the prices that they are paying.

If you think your bill is too high for what you are currently using your cable for, give the company a call and see if there is any negotiating that you can do.

Sometimes they will say no, but other times, you may find that you can save a few dollars per month.

If this is your first time making the call, and you have been with the company for years, they will likely be able to do something to help out a bit.

 

7. Cheap and Free Options Out There

Man holds a white smart phone that shows movies from Netflix

 

Although cable is very convenient, people are starting to realize that they watch television a bit differently now.

In today’s world, people tend to like to watch an entire series all at once.

They watch the episodes when they can and move onto another series.

It’s fairly similar to reading books and reading one series before moving on to another.

With cable, it can be a bit more difficult to do this.

That is why people are enjoying the ability to watch this type of television through different streaming services.

Whether it be Amazon Prime Video, Netflix, Hulu, or any of a number of other available services, there are options that are much cheaper than cable on the market.

These options may take a bit of getting used to, but they are going to be available for people who are interested.

These options are making people leave cable companies, and it is significantly impacting the total price that current customers are paying.

If you have experienced a recent rate hike in your cable bill, you can almost guarantee that it has everything to do with people leaving the cable company.

If you don’t want to be impacted like this, start doing what everyone else is doing and look for some additional services out there.

 

8. Equipment Rental Fees

Wooden Blocks with the text Fees

 

If you don’t pay close attention to your cable bill, you may not see all of the different line items that you are being charged for.

One of those major line items is the equipment rental fees.

These fees are charged to customers who have cable boxes and other equipment in their homes that are necessary for the cable provider.

The problem with having to pay these fees is that you are usually charged by the amount of equipment you have.

This means that if you have three televisions in your home, you are getting charged for all three cable boxes that you use.

These prices will add up quickly and end up making it more difficult to afford the cable service as a whole.

The best thing to do about this is to try and limit the number of televisions that you have in your home and see if that helps you save on the total pricing.

 

9. High Overhead Costs

overhead costs

 

Cable companies have very high overhead costs.

They have a very large number of employees, ranging from technicians to customer service to marketing directors.

This is a large group of people to look after and to make sure that they are always doing their jobs.

Of course, this means that you must add in managers and other service personnel.

Essentially, when you look at what it takes to run a cable company, it will very likely give you a headache.

There are so many issues that can come up and many benefits to pay for that a good portion of your monthly bill will cover that.

If a cable company is not good at managing its expenses, one of the easiest things to do is to start charging consumers more.

Even if they do a small rate increase by a few dollars, it will bring them millions more each month.

The overhead of these companies certainly brings your monthly bill up just a bit.

If you don’t keep a close eye on the bill, the pricing could go up even more.

 

10. Premium Choices

woman eating popcorn and watches movie on cable TV

 

Last but certainly not least are the premium choices that cause your bill to increase.

When you have the option to choose all of these additional channels each month, you will notice that the pricing adds up quite a bit.

Going with a more basic service can save money, but you will also miss out on quite a bit.

The basic cable packages used to offer quite a few channels and advanced programming.

Today, these channels have become more and more limited to make you pay for the others on top of everything.

These a la carte cable packages are made to look like they are priced well and allow you some choices, but it just means you end up paying more in the end.

In the coming years, we will probably see some major changes in the world of cable, and how that will impact your bill remains to be seen.

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About Brittany Olizarowicz

Britt Olizarowicz is a freelance writer, author and mother of two young children. With a history as a golf professional, real estate agent and business owner, Britt has a wide range of experience and knowledge in a variety of topics. Britt thoroughly enjoys educating and sharing information with readers.

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