Report finds consumers spend an average of $1,186 a year on these services
of ConsumerAffairs
Many household expenses are rising and cable and internet services are no exception. A newreport by doxoINSIGHTS underscores those cost for American households.
According to the report, Americans are now spending an average of $1,186 annually on these services, marking a 3.4% increase from the previous year. The report suggests the increase is largely the result of hidden fees and a lack of regulatory oversight, which have allowed service providers to raise prices.
The report, which analyzed household payments across 97% of U.S. zip codes, estimates the total market size for cable and internet services at $156 billion annually. It found that 81% of U.S. households incur these expenses, with an average monthly cost of $122, translating to $1,464 per year for those who pay these bills. However, when averaged across all households, the annual cost is $1,186.
Cable and internet bills have become standard expenses for most American households, with eight in ten American adults saying they subscribe to home broadband service, said Liz Powell, Senior Director of INSIGHTS at doxo.
Yet many Americans dont understand how greatly those bills can vary based on factors including speed, data usage, and equipment fees, in addition to subscription services.
A cause for worry
Powell said 46% of Americans were worried about their ability to pay their cable and internet bill, according to recent research, making it one of the top three bills they were concerned about.
The more consumers are informed about how they use their internet and cable, the more likely they are to be able to negotiate a cost-effective plan that works for their household, she said.
The report also provides insights into regional variations in cable and internet costs. States like Delaware, New Hampshire, and Vermont have some of the highest bills, with annual costs significantly exceeding the national average.
For instance, Delaware residents pay an average of $1,292 annually, which is 28% higher than the national average. Similarly, major cities such as San Diego and El Paso also report higher-than-average costs, with annual expenses reaching $1,504 and $1,535, respectively.
As streaming services continue to expand their offerings and traditional cable prices rise, consumer behavior is shifting. The report suggests that the future of traditional television is uncertain, as more consumers opt for streaming services. Powell advises consumers to become more informed about their internet and cable usage to negotiate better deals and manage costs effectively.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-14 10:15:19
