US Consumers Could Drop Spending on Mobile, Broadband and Pay TV Services

US consumer spending on Subscription-TV, Broadband and Mobile Services will be “about the same” for most consumers, but about 15 percent intend to cut back. As a result, In-Stat estimates that consumer spending across these three segments could see nearly a $5 B 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 to 50 percent of respondents using a PC while watching TV, and about 30 percent 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 program 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.”

Recent research by In-Stat found the following:

• Consumer multitasking while watching TV varies significantly depending on demographic characteristics.
• Several companies are identifying new opportunities to “marry” TV to people simultaneously viewing a related web-site, and transform the World Wide Web into a “lean back” experience.
• Low-cost Netbook PCs could represent a $2.4 B opportunity.
• The biggest decrease in spending on mobile, broadband and subscription TV services will come from households with income below $35 K.

The research, “US TV Viewers Response to Economic Turmoil,” covers TV viewing habits in the US. It includes: