US: 87% still subscribe to multi-channel video service

New consumer research from Leichtman Research Group, Inc. finds that 87% of US households subscribe to some form of multi-channel video service. The percentage of households that subscribe to a multi-channel video service is similar to the past two years, and up from 80% in 2004.

The mean annual household income of multi-channel video subscribers is 53% higher than the household income of non-subscribers. Nationwide, 6% with annual household incomes over $75,000 do not subscribe to a multi-channel video service — compared to 12% with incomes of $30,000-$75,000, and 27% with incomes under $30,000.

These findings are based on a telephone survey of 1,369 households from throughout the United States, and are part of a new LRG study, Cable, DBS & Telcos: Competing for Customers 2012. This is LRG’s tenth annual study of this topic.

Other related findings include:

• Overall, 42% of individuals agree that changes in the economy have negatively impacted their household in the past year — down from 50% last year, 47% in 2010, and 44% in 2009.
• 39% of those negatively impacted by the economy (8-10) agree that they reduced spending (8-10) on TV, Internet, and phone in the past year — compared to 18% of those less impacted (1-7) by the economy
• 32% of those negatively impacted by the economy agree that they will likely reduce spending in the next six months — compared to 12% of those less impacted by the economy
• 16% of those negatively impacted by the economy are likely to switch video providers in the next six months — compared to 8% of those less impacted by the economy
• Mean reported monthly spending on multi-channel video service is $78.63 — an increase of 7% from last year
• Multi-channel video subscribers with annual household incomes over $75,000 report spending 14% 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% higher than those with incomes <$30,000

“The penetration of US households subscribing to a multi-channel video service has levelled 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.”