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Four Companies That Want You To Cut the Cord

Each month millions of people find themselves muttering under their breath how much they hate paying their cable bill. It is completely understandable considering how much the average person is paying each and every month to their cable or satellite provider.

The average cable bill rises around 6% a year, and it has been estimated that by the year 2020 the average monthly bill is going to be $200. That is just the average, if you want premium channels or extra DVR boxes, you can expect a much larger bill.

Because of the increase, there is a growing movement by people to cut the cord all together. It is a scary thing. We are so used to our cable boxes, and our hundreds of channels, but the cost is just getting too much. Cable providers fear this, but there are plenty of companies that are poised to take advantage of people wanting to cut the cord.

1. Netflix (NFLX): The company most ready to take advantage of people cutting the cord is Netflix. The video streaming service is a must have for anyone that is considering turning off their cable box once and for all. Netflix offers a monthly plan for just $7.99 that allows you to instantly stream an unlimited number of movies a month. Understanding the trend, Netflix is working hard to beef up its content, and has been working on developing its own programming as well. Every person that cuts the cable cord will have to at least consider setting up a Netflix membership, so the company is thrilled with the rate at which people are finally cutting the cord.

2. Apple (AAPL): Apple has been rumored in recent years to be developing its own smart television, but so far those rumors have not proven to be true. Regardless, the company already has Apple TV on the market, which a lot of people have used in order to free themselves from their monthly cable bill. Apple TV is a stand-alone box that you can use to stream content directly to your television. You can use Apple TV to watch Netflix, Hulu, and a wide variety of other video streaming services. Apple TV is not the most popular streaming device, that title probably belongs to Roku, but it is very popular, and benefits greatly from people who want to abandon their cable or satellite provider.

3. Amazon (AMZN): Amazon has the advantage of benefitting in two different ways from people cutting the cord. Firstly, it benefits from people needing a place to buy the hardware that they are going to need. You can buy a Roku on its site, you can buy an Apple TV there, and of course you can pick from a wide range of antennas. Once you get your hardware sorted out, Amazon then steps in to sell you content as well. They also want to sell you a $79 annual Amazon Prime package which gives you access to Amazon Instant Video. With this subscription you can watch classic and new release movies, and many must-see-tv shows. Amazon wins all around by people opting to cut the cable cord.

4. Sony (SNE): While televisions have been getting better, the market has not really been growing. Sony has been struggling as of late, but its lineup of smart televisions would greatly benefit from people wanting to get away from their monthly cable bills. Smart TVs have wifi internet capability built in, so you do not need any hardware such as Apple TV or a Roku box to get content from services such as Netflix, Hulu or Google's (GOOG) YouTube. Smart TVs make it so easy to stream content directly to your television they could be exactly what the stagnant television industry needs to bring buyers back into the market.

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.