US consumer spending on TV services to suffer

US Consumer spending on Subscription-TV, broadband, and mobile services will be "about the same" for most consumers, but about 15 per cent intend to cut back. As a result, In-Stat estimates that consumer spending across these three segments could see nearly a $5 billion decrease during the next 12 months. Yet In-Stat’s recent survey reveals that broadband service is among the most integral parts of consumers‚ lives. Over 66 million consumers across demographic categories are using the Internet while camped out on their sofas watching TV.

"Some male age groups had 40 per cent to 50 per cent of respondents using a PC while watching TV, and about 30 per cent of females under the age of 40 are also using a PC while watching TV," says Gerry Kaufhold, In-Stat analyst. `"New approaches using online web portals synchronized to a TV programme will continue to develop, because they present no new costs. Cable TV operators also face increasing competition from lightweight services that deliver popular Cable programming, supplemented by content delivered via broadband"