Save Money On Cable Essay

936 words - 4 pages

What if you had to pay for food each month that you would never eat? You might be wasting money in the same way on your cable bill.Are you a sports fan who never touches the music channels? Or on the flip side, perhaps you're obsessed with cooking shows but never tune into any games. Well, those channels still cost you. In fact, some of the most expensive channels cost you $6 each a month whether you watch them or not.Data from research firm SNL Kagan has detailed how much cable providers pay top networks each month, with the most expensive channel, ESPN, priced at $6.04. The top 10 channels, including ESPN, have a total price of $45.And of course, those costs are passed on to subscribers like you, says Benjamin Feldman, head of content strategy at ReadyForZero, an online service to help people manage and reduce debt, and creator of the Smart Money Debate series which tackles financial topics."If you want to still have cable but not pay too much, there are plenty of things you can do to keep the costs down," he says.Continue reading to learn why these stations are so expensive and how to avoid paying for them.Why Some Channels Are More ExpensiveIn your high school economics class, you might have learned about the law of supply and demand. If people want what you're providing, they will pay a higher price for it."Some of these channels are able to charge cable providers much more, because they have leverage because people want to watch them," Feldman says. For instance, with rights to highly watched events such as Monday Night Football, ESPN can use that to their advantage when negotiating with cable providers.Cable providers such as Comcast and Time Warner know that their customers are going to demand ESPN, so there's not much they can do about the price, says Feldman. They pay it and pass those prices onto their customers, he explains.Also, cable providers bundle certain stations together, resulting in a higher price for the consumer, says Feldman. For example, ESPN is part of the Disney Company, and cable providers bundle Disney ($1.21 per customer) with ESPN2 (74 cents) and ESPN ($6.04), he says. Interested in how much the other top channels cost? Here are the top 10 networks and the estimated price for cable providers each month, according to SNL research:• ESPN: $6.04• TNT: $1.48• 3net: $1.37• NFL Network: $1.22• Disney Channel: $1.21• FOX News: $0.99• USA: $0.83• ESPN 2: $0.74• TBS: $0.72• FOX Sports 1: $0.68How to Avoid Paying for Expensive Cable ChannelsAfter a hard day at work, you like to relax on your comfy couch and turn on your television for some entertainment. You probably have your go-to shows and networks, but what about those...

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