Analyst: Pay TV risks being priced out of reach of consumers

Bernstein Research analyst Craig Moffett, in a new research note, said cable TV operators are pricing themselves out of the market, noting that the industry has raised prices 29 percent since 2006.

The result, he said, could be massive defections of pay-TV subscribers who are "faced with the choice of pay TV" or paying their basic bills. "Pay TV risks being priced out of reach," he said.

Moffett said about 40 percent of average Americans, facing declining income and rising prices of food and fuel, have "nothing left for clothing, for debt service, for cable, or for phone."

Moffett has consistently pointed to the economy in explaining cable's subscriber losses and warned that more subscribers may opt out of high cable bills for viewing over-the-air and online video.

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