In this article it predict that pay TV such as Cable and Satellite will rise 132% by year 2020.

The average monthly pay-TV bill is projected to top $200 by 2020, up 132% from $86 per month consumers paid for bundled TV service in 2011 – despite more households forgoing premium channels, according to new data from The NPD Group.

The meteoric rise in monthly fees for access to basic TV and premium channels such HBO, Showtime, Epix and Starz is noteworthy considering the influx of lower-cost over-the-top subscription video on demand services such as Netflix, Amazon Prime and Hulu Plus.

The average monthly pay-TV bill is expected to reach $123 by 2015, according to NPD. The projected fees do not include charges for broadband, basic Internet or telephone service. The company reports 16% of domestic households currently do not subscribe to pay-TV channels — a percentage that is up, with 5 million fewer households opting for premium channels due to the ongoing mortgage crisis.

“As pay-TV costs rise and consumers’ spending power stays flat, the traditional affiliate-fee business model for pay-TV companies appears to be unsustainable in the long term,” said Keith Nissen, research director for The NPD Group. “Much-needed structural changes to the pay-TV industry will not happen quickly or easily; however, the emerging competition between StreamingVOD and premium-TV suppliers might be the spark that ignites the necessary business-model transformation of the pay-TV industry.”

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NPD: Pay-TV Bills Rising Exponentially | Home Media Magazine