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Four companies that benefit from cord cutting

Each month millions of people find themselves muttering under their breath about how much they hate paying their cable bill. This is completely understandable considering how much the average person is pays 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 these steady increases in price with apparently no increase in value, 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 to be too high. 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 who 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 and TV shows each month. Understanding the trend, Netflix is working hard to beef up its content, and has been working on developing its own programming as well. The company recently made the first season of political drama “House of Cards” available for streaming all at once. Netflix is also producing a new season of cult-comedy “Arrested Development,” which will only be available through the company's streaming service. Every person that cuts the cable cord will have to at least consider setting up a Netflix membership. The company is thrilled with the rate at which people are leaving cable behind.

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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.