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Cable Prices Increased At 4 Times the Rate of Inflation - Valley News Live - KVLY/KXJB - Fargo/Grand Forks

Cable Prices Increased At 4 Times the Rate of Inflation

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If you feel like cable prices are increasing quickly, you are right! The FCC released a report saying in 2012 the cost of basic cable pricing increased four times rate of inflation in the United States.

The FCC report shows the most popular expanded basic cable package increased by 5.1% or about $65. Meanwhile that same year, the inflation rate in the country was only 1.6%. Over the past 18 years cable rates have increased more than 6% and that's causing many cash-strapped Americans to get rid of their cable.

"We looked at the cost of streaming online and things like that and we realized we would be saving a lot of money just to do digital streaming," says former cable subscriber Allisen Merrill.

Merrill uses an amplified antenna, which plugs into the wall and gives her 14 channels as well as 3 different streaming programs to watch her television shows and movies. She only pays $25 a month.

"In the past for cable we never paid less than a $100  a month," says Merrill. 
 
The move she and her husband made to digital was essential.

"Comparable speaking were now saving about $80 a months," says Merrill. 

The extra savings each month allows them to do more as a family.

"In a year your saving enough to take a decent vacation or do extra things with the family," says Merrill. 

A Cable One representative told Valley News Live on Tuesday that they are aware more people are using streaming services. Cable One says the rate increases happen as a result of programmers charging more and cable companies not able to absorb all of the extra costs. The FCC study says the rate increase does not include the cost equipment charges and fees.
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