Americans Are Paying For A Ton Of Cable Channels They Never Watch

Cable Providers

Does anyone really need 300 channels?

Citi analysts Jason Bazinet, Thomas Singlehurt, Michael Rollings, Mark May, and Catherine O’Neill released a report on Thursday that clearly highlights exactly how absurd cable subscription plans have become over the last decade.

The chart below shows the number of cable channels received (light blue) by cable subscribers and the number of channels actually viewed (dark blue).

Cable channels paid for versus actual channels earned

“[B]ack in 1994, US consumers watched about 25% of the channels they could receive,” they wrote. “By 2013, there were nearly 200 channels, but the average household watched just 17 channels.”

“In effect, US consumers are paying for a lot of channels they don’t watch.”

If like you have have cut the cable cord, you were likely well aware that you were overpaying.

“[T]hat suggests cable networks might be over-earning,” the analysts revealed.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.