HH Income Limiting Factor In Video Subscribers
According to Leichtman Research Group (LRG), 87% of households nationwide subscribe to some form of multi-channel video service. The percentage of households that subscribe is similar to the past two years. The mean annual household income of multi-channel video subscribers is 53% higher than the household income of non-subscribers.
Based on a telephone survey of households from throughout the United States, 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.
Related findings from the survey include:
- 42% of individuals agree that changes in the economy have negatively impacted their household in the past year, down from 50% last year
- 39% of those negatively impacted by the economy agree that they reduced spending on TV, Internet, and phone in the past year, compared to 18% of those less impacted
- 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
- 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
- Mean reported monthly spending on multi-channel video service is $78.63, an increase of 7% from last year
Bruce Leichtman, president, Leichtman Research Group, concludes that “... US households subscribing to a multi-channel video service has leveled off... the defining characteristic of those who do not subscribe to a multi-channel video service... (is) the level of household income... those facing economic challenges are most likely to switch provider... “
The overall sample has a statistical margin of error of +/- 2.6%, says LRG.
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