New consumer research from Leichtman Research Group (LRG) finds that 87 per cent 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 last year, and up from 80 per cent in 2004.
Non-subscribers to multi-channel services tend to have lower household incomes. Nationwide (including households that do not have a TV set), 8 per cent with annual household incomes over $75,000 do not subscribe to a multi-channel video service – compared to 14 per cent with incomes of $30,000-$75,000, and 20 per cent with incomes under $30,000.
These findings form part of a new LRG study, Cable, DBS, & Telcos: Competing for Customers 2011.
Other LRG findings indicate that:
- 12 per cent of non-subscribers paid to subscribe to a service in the past year (the percentage of non-subscribers who dropped service in the past year has been fairly consistent over the years of these studies)
- Mean reported monthly spending on multi-channel video service is $73.35 – an increase of 3.0 per cent from last year
- Multi-channel video subscribers with annual household incomes over $75,000 report spending 17 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 34 per cent higher than those with incomes <$30,000
- 9 per cent of cable TV subscribers, 8 per cent of satellite TV subscribers, and 6 per cent of telco TV subscribers are likely to switch from their current provider in the next six months
- 13 per cent of multi-channel video subscribers with annual household incomes under $50,000 are likely to switch from their current provider in the next six months – compared to 6 per cent with incomes over $50,000
- 9 per cent of multi-channel video subscribers with household incomes under $30,000 are likely to disconnect and not subscribe to any TV service in the next six months – compared to 2 per cent with incomes over $50,000
“The overall percentage of US households subscribing to a multi-channel video service is as high as it has ever been, but it is levelling off,” said Bruce Leichtman, president and principal analyst for LRG. “Higher income households remain most likely to subscribe to a multi-channel video service. This group also spends more money per month on video services, while being less likely to switch or disconnect services than others.”