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FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Price and income assumptions

»Study: Average Cable Bill Will Top $200 By 2020 [119] comments
quote:
While consumer income remains relatively flat, cable rates have been rising an average of 6 percent per year
2 assumptions in that statement. That rates will continue to rise at 6%/yr until 2020. And that income will remain flat.

Real disposable personal income per capita according to forecasts will average about 2%/yr. »www.ers.usda.gov/Publica ··· 111b.pdf So that number is not expected to be flat.

Will cable rates continue to rise at 6%/yr? If, as claimed by many in the technology forecast business are right, cord cutting will continue to increase and internet video explodes, cable rates will NOT increase at 6%/yr.

openbox9
Premium Member
join:2004-01-26
71144

openbox9

Premium Member

Even if rates climb an average of 6%/yr through 2020, the math doesn't work with NPD's assumed basis of $86/mth in 2011.