The NPD Group put out a survey on Tuesday that suggested monthly pay-TV rates could reach $200 by 2020, up from the current average rate of $86. The analysts at NPD credit rising content-licensing fees and the average 6 percent rate increase that cable companies jam down users’ throats each year.This is where the dis-aggregation of cable into 1) network provider (one amongst many) and 2) content provider becomes important.
I recently bought my parents a ROKU 2S box. The box is amazingly small, about the size of a mobile phone and a bit thicker. We plugged it in to an HDMI port on their TV and I connected it up to their wireless network (they have cable) and the software updated and the Roku box was working. In the picture below you can barely make out the small box to the right of the front channel speaker.
Life In The Great Midwest: Cable and Roku
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