June 10, 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 http://www.LeichtmanResearch.com

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