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87% of US still subscribe to pay-TV

July 6, 2012

Consumer research from Leichtman Research finds that 87 per cent of US households subscribe to some form of multi-channel video service. The number hasn’t changed in the past two years, and is up from 80 per cent in 2004.

The mean annual household income of multi-channel video subscribers is 53 per cent higher than the household income of non-subscribers. Nationwide, six per cent with annual household incomes over $75,000 do not subscribe to a multi-channel video service – compared to 12 per cent with incomes of $30,000-$75,000, and 27 per cent with incomes under $30,000.

Other related findings include:
– Overall, 42 per cent of individuals agree that changes in the economy have negatively impacted their household in the past year – down from 50 per cent last year, 47 per cent in 2010, and 44 per cent in 2009.
– Mean reported monthly spending on multi-channel video service is $78.63 – an increase of 7 per cent from last year
– Multi-channel video subscribers with annual household incomes over $75,000 report spending 14 per cent  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 per cent 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 per cent 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.”

Categories: Articles, Broadcast, Consumer Behaviour, Markets, Pay TV, Research