Addition of more channels and rising carriage fees increases internet TV service costs

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July 02, 2020, 1:14 AM UTC

Internet TV services initially charged low prices, when carriage fees was less.

With rising carriage fees and more channels being added to internet TV services, prices for over-the-top TV streaming services has increased. YouTube TV recently announced that it would be raising its prices by 30% to $65 per month.

With providers like ViacomCBS and Fox charging high prices to license content, internet TV and OTT services are forced to raise prices. Although the number of internet TV services have increased, the consolidation of major channels has decreased competition and increased costs.

Further, as carriers do not prefer splitting content, internet TV streaming services wound up paying for all the channels rather than just the ones they want to stream. While internet TV services have better user interfaces, they still rely on expensive carrier fee systems.

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