Here's why cable companies have been hiking internet prices

Cord-cutters are to blame.
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Amid the flood of customers canceling their cable in favor of online streaming, companies like Comcast and Charter have been hiking their internet prices to make up for it.

That's according to Morgan Stanley, which found American cable TV companies are charging its broadband-only customers 12 percent more than a year ago, Nasdaq reports.

The nation's biggest cable/internet providers are now charging $66 a month on average for internet-only deals, but only $49 a month for broadband when it's bundled with a cable TV package.

It comes as more Americans, particularly young ones, are canceling their expensive cable packages in favor of a mixture of cheaper internet streaming sites like Netflix and Hulu, or online TV streaming services like Sling TV, PlayStation Vue and DirecTVNow.

Related:

The Tip Jar: Are online TV streaming packages cheaper than cable?

But while these customers no longer need cable, they still need to pay for the internet, where cable companies like Comcast still have a massive market share.

This is why they're hiking their broadband prices to make up for their lost TV subscribers, and it could get worse in the future.

According to Consumerist, experts predict companies will need to charge an average of $80 a month for internet to make up for the increasing number of consumers cutting the cord.

Has it changed in the Twin Cities?

GoMN's Tip Jar column this past March compared the cost of cable/internet packages versus buying internet separately and signing up for online streaming TV.

Back then, Comcast was charging Twin Cities customers $44.97 a month over two years for a 25 mbps-speed, internet-only package.

A few weeks later Comcast announced it was more than doubling the speed of its 25 mbps Performance Plus internet to 55 mbps, at no extra cost to existing subscribers.

But while the internet it offers is now faster, new customers signing up for Performance Plus will pay slightly more, $47.47 a month, than they would have six months ago.

GoMN has asked Comcast for more details of how its prices have changed over the past year in the Twin Cities, and will update this story if and when the information is provided.

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