Despite futuristic predictions, the vast majority of U.S. households still subscribe to multi-channel video services – cable, satellite, fiber. In fact, according to a new report from the Leichtman Research Group, 87 percent of households now subscribe, and that’s up from 80 percent in 2004.
And, families and individuals pay handsomely for such services. In fact, the average cable or other bill is now $78.63, “an increase of 7% from last year.” But, there’s no indication that subscribers are getting any more for their increase.
The Leichtman Group focused primarily on how the economy has affected spending on media. A huge 42 percent of Americans still say they’re negatively affected by the economy. And of those, 39 percent “agree that they reduced spending (8-10) on TV, Internet, and phone in the past year.”
Perhaps that’s why cable and others – not wanting to share the loss with the public – saw fit to raise their rates, far beyond the rate of inflation.
Overall, 87% still subscribe to a multi-channel video service (Leichtman Research news release, Jul. 5, 2012)