It’s a small change in price for cable companies that is helping to drive consumers to subscribe to their services, especially those with higher monthly bills.
But the price tag for cable and Internet subscriptions has been rising at a rapid pace, driven by the popularity of streaming services such as Netflix, Amazon and Hulu.
As the popularity and cost of streaming has grown, so too has cable companies’ desire to offer their own content, which in turn has fueled demand for its own content.
But as the costs of content have soared, so have the costs for cable subscribers.
“It’s become quite clear that cable subscribers are getting increasingly unhappy with the way the prices of content are going,” said Matthew Hickey, chief executive of the Center for American Progress Action Fund.
“The cable industry has been trying to shift their costs to consumers, and they’re having trouble doing that.”
The trend has already begun to affect consumers in other ways.
Comcast and Time Warner recently began offering unlimited video streaming for $3 per month, which is the same price as a Netflix subscription.
The price for the same service at its peak was $7.99.
Hickey said that, despite the price increase, consumers aren’t willing to pay $5.99 a month for the content.
He noted that cable and internet service companies have tried to justify the price increases by pointing to their own increased profits.
“There’s a pretty clear pattern here,” he said.
“There’s some evidence to suggest that the cable industry’s profit margins are shrinking.
They’re cutting costs.
They are increasing prices.
And the reason they’re increasing prices is because they’re trying to squeeze more profit out of consumers.
So they’re making less money on their own services.”
Hickey pointed to a 2013 study by the research firm MoffettNathanson that found cable subscribers were willing to spend $6.79 on cable and $9.95 on Internet compared with $6 a month a year ago.
In the same study, a 2014 Pew Research Center study found that the median cable and broadband subscriber spent $8.40 a month on cable services in 2015, down from $10.60 a year earlier.
That trend has been mirrored by some major media companies, which have been able to maintain their subscriber counts through subscription fees.
But those same cable and media companies have also been forced to lower their prices, with some companies raising their prices to keep up with increased consumer demand.
In 2016, CBS cut its prices to $3 a month and NBC dropped its price to $6 from $9, which the New York Times reported was a sign that “the cable and satellite companies were struggling.”
And this past year, Netflix and Hulu, which offer cable and other video streaming, lowered their prices by up to 25 percent in an effort to keep customers happy.
Netflix, which offers a variety of services, including Netflix Originals, has been in the news a lot recently because of what has been described as its “slow” subscriber growth, but Hickey pointed out that Netflix’s growth has been fueled by increased demand for content and the increased competition from services like Hulu.
The growth of streaming also helps boost subscriber counts, as Netflix and other streaming services have become more accessible to consumers.
But Hickey said Netflix’s success has been more due to its unique business model than to increased subscriber numbers.
“Netflix doesn’t have a traditional subscriber base,” he explained.
“It’s very much a service for the people who can’t get online because they have cable.”
“Netflix has to grow because it has to compete with Netflix,” Hickey continued.
“That’s the problem.”
Hibernate is a new subscription service that aims to replace traditional cable.
It was launched in March and is currently available to customers in 35 states and the District of Columbia.
Hickey told CNBC that it is aimed at millennials who aren’t used to subscribing to cable.
Hibernova is the latest in a series of companies to try to compete against cable and its cable competitors.
In August, Dish Network said it was adding Hulu, but it didn’t specify a price.
In February, Cox Communications said it would launch a new tier of its streaming video service, but did not provide a price or a timeframe for when customers would be able to access it.
Hibler said that consumers have been frustrated by the fact that they can’t buy content online because it costs too much.
He said that the problem is getting worse, not better, as more services try to offer the same product at cheaper prices.
“What is happening is that these companies are trying to do the same thing with their own streaming services, and the consumers are going to end up paying a higher price for it,” he continued.
“They’re not trying to compete on price, they’re just trying to try and squeeze as much profit out as possible.
And they’re going to make less money out