OVERALL, 87% STILL SUBSCRIBE TO A MULTI-CHANNEL VIDEO SERVICE
Household Economics are Key to Multi-Channel Video Subscriptions and Spending
Durham, NH -- July 5, 2012 -- New consumer research from Leichtman Research Group, Inc. (LRG) finds that 87% of households nationwide subscribe to some form of multi-channel video service. The percentage of households that subscribe to a multi-channel video service is similar to the past two years, and up from 80% in 2004.
The mean annual household income of multi-channel video subscribers is 53% higher than the household income of non-subscribers. Nationwide, 6% with annual household incomes over $75,000 do not subscribe to a multi-channel video service -- compared to 12% with incomes of $30,000-$75,000, and 27% with incomes under $30,000.
These findings are based on a telephone survey of 1,369 households from throughout the United States, and are part of a new LRG study, Cable, DBS & Telcos: Competing for Customers 2012. This is LRG's tenth annual study of this topic.
Other related findings include:
- Overall, 42% of individuals agree that changes in the economy have negatively impacted their household in the past year -- down from 50% last year, 47% in 2010, and 44% in 2009.
- 39% of those negatively impacted by the economy (8-10) agree that they reduced spending (8-10) on TV, Internet, and phone in the past year -- compared to 18% of those less impacted (1-7) by the economy
- 32% of those negatively impacted by the economy agree that they will likely reduce spending in the next six months -- compared to 12% of those less impacted by the economy
- 16% of those negatively impacted by the economy are likely to switch video providers in the next six months -- compared to 8% of those less impacted by the economy
- Mean reported monthly spending on multi-channel video service is $78.63 -- an increase of 7% from last year
- Multi-channel video subscribers with annual household incomes over $75,000 report spending 14% more per month than those with incomes under $30,000 -- when non-subscribers are included, mean spending per household of all with incomes >$75,000 is 49% higher than those with incomes <$30,000
"The penetration of US households subscribing to a multi-channel video service has leveled off at about 87% nationwide over the past three years," said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. "The defining characteristic of those who do not subscribe to a multi-channel video service remains the level of household income. In addition, those facing economic challenges are most likely to switch provider, or reduce spending on services."
About Leichtman Research Group, Inc.
Leichtman Research Group, Inc. (LRG) specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.
Cable, DBS & Telcos: Competing for Customers 2012 is based on a telephone survey of 1,369 adults age 18+ from throughout the continental US that was conducted in April-May 2012. The random sample of respondents (including 109 cell phone calls) was distributed and weighted to best reflect the demographic and geographic make-up of the US. The overall sample has a statistical margin of error of +/- 2.6%.
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