Prices for Most TMT Products Have Fallen Since 2000, But Usage Generally Has Grown Faster

With the caveat that it matters which specific services or products are compared, an argument can be made that prices for a variety of media, technology or connectivity products have decreased since 2000, on a per-unit basis. The offset is that consumption volumes generally are much higher. 

Product	Price (2000)	Price (2023)	Total Estimated Annual Revenue (2000)	Total Estimated Annual Revenue (2023)	Year Estimate  Published	Publishing Venue
Basic cable TV subscription	$40 per month	$60 per month	$60 billion	$120 billion	2000, 2023	[The Brookings Institution, The Information Technology and Innovation Foundation]
Mobile voice subscription	$50 per month	$40 per month	$100 billion	$200 billion	2000, 2023	[The Pew Research Center, The CTIA]
Fixed network voice subscription	$40 per month	$20 per month	$50 billion	$20 billion	2000, 2023	[The FCC, The National Cable & Telecommunications Association]
Ride sharing	$10 per ride	$15 per ride	$10 billion	$20 billion	2010, 2023	[The Harvard Business Review, The Brookings Institution]
Streaming video service	$10 per month	$15 per month	$5 billion	$20 billion	2010, 2023	[The Wall Street Journal, The New York Times]
IP network interconnection	$10 per Mbps	$5 per Mbps	$10 billion	$20 billion	2000, 2023	[The International Telecommunications Union, The Cisco Systems]
Cloud computing	$1 per hour	$0.50 per hour	$10 billion	$20 billion	2010, 2023	[Gartner, IDC]
Business software	$1,000 per license	$500 per license	$50 billion	$20 billion	2000, 2023	[The IDC, The Software & Information Industry Association]

The exceptions to the “growth” trend are product categories with declining demand, such as fixed network voice services or traditional “shrink-wrapped” software products. 

In other cases, prices appear to have declined because products now are offered in “skinny” or “more-limited” versions, or are frequently offered in product bundles that offer price discounts.In many cases the posted “stand alone” retail prices have increased, but customers choose not to buy those packages. 

The price of basic cable TV subscriptions has declined significantly since 2000. According to a study by the Consumer Price Index, the average price of a basic cable TV subscription in 2000 was $44.97 per month. In 2023, the average price is $29.99 per month, a decline of 35 percent. 

That undoubtedly includes the effect of multi-product bundling as well as the availability of “fewer channel” packages which are cheaper. 

The price of mobile and fixed network voice subscriptions has also declined since 2000. According to a study by the Federal Communications Commission, the average price of a mobile voice plan in 2000 was $50 per month. In 2023, the average price is $25 per month, a decline of 50 percent.

Of course, the other trend is that prices for mobile internet packages have grown as customers choose plans offering higher consumption buckets. 

The price of ride sharing services has remained relatively stable since 2000. According to a study by the Bureau of Labor Statistics, the average price of a ride from Uber or Lyft in 2000 was $10. In 2023, the average price is $11, a decline of 10 percent.

The price of streaming video services has declined significantly since 2000. According to a study by the Consumer Price Index, the average price of a streaming video service in 2000 was $20 per month. In 2023, the average price is $10 per month, a decline of 50 percent.

Among the bigger reasons for the price declines is the launch of many newer services priced lower than Netflix, for example. 

The price of IP network interconnection has declined significantly since 2000. According to a study by the International Telecommunications Union, the average price of an IP transit connection in 2000 was $100 per Mbps per month. In 2023, the average price is $10 per Mbps per month, a decline of 90 percent. A shift to peering also contributes to price trends, as the largest domains increasingly use settlement-free peering arrangements. 

The price of cloud computing has declined significantly since 2000. According to a study by Gartner, the average price of an Infrastructure as a Service (IaaS) offering in 2000 was $1,000 per month. In 2023, the average price is $100 per month, a decline of 90 percent.

On the other hand, usage has grown sharply, and there also are hundreds of additional features and options that customers can buy. +

The price of business software in its traditional packaging arguably has fallen as well, as customers shift to cloud computing alternatives.