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Study: 87% US Households subscribe to video service
When it comes to consuming video content most US households are using subscription services to get a bit more variety. According to new data from Leichtman Research Group 87% of US households subscribe to some type of video service, up from 80% in 2004. Of those who do use subscription services are earning more than those who do not subscribe.
Here's how the numbers break down:
• 94% of those with a household income of $75,000 or higher subscribe to a multi-channel video service
• 88% of those with household incomes between $30,000 and $75,000 use multi-channel subscriptions
• 73% of those with household incomes under $30,000 subscribe to multi-channel video services
"The penetration of US households subscribing to a multi-channel video service has leveled off at about 87% 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."
Researchers also found that 39% of those impacted by the struggling economy - because of job loss, layoffs or other factors - have reduced their spending on Television, Internet and Phone over the past year. On average video subscribers are spending $78.73 on services per month, up 7% over spending in 2011.
On the brighter side, only 42% report economic changes have negatively impacted their spending; in the 2011 survey 50% said they'd reduced spending or made other changes because of the economy.
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