I was talking to my dad the other day about our cable TV service. We use the same provider, so we were both dismayed (but not surprised) when we both received a letter in the mail from our cable company letting us know of a rate increase. This is something that usually comes out around this time of year. My dad got a note that his service was going up $3 a month, while ours was going up $8 per month.
The letter blamed rate increases from content providers, which is a pretty standard reason that they’ve given the last few notices.
While talking, my dad did a quick set of math that was pretty eye opening. He did some research and found that our cable company has roughly 800,000 accounts. A $3 month increase per month is $2.4 million extra charges coming in each month. Multiply that by twelve to look it over an annual basis, and you’re coming close to $30 million dollars.