Cable Operators

Average Pay TV Bill Is Up 3% to $73.35 Monthly: Leichtman

6/27/2011 12:01 AM Eastern

Multichannel video subscribers
in the U.S. pay a mean average of $73.35
per month, up 3% from last year, while the
87% of U.S. households that subscribe to
cable, satellite or telco TV is leveling off, according
to a consumer survey fielded this
spring by Leichtman Research Group.

High-income consumers are most likely
to subscribe to a multichannel-video service.
Just 8% of those with annual household incomes
over $75,000 do not subscribe to a multichannel-
video service, compared with 14%
of those with incomes of $30,000 to $75,000
and 20% of those making less than $30,000.

“The overall percentage of U.S. households
subscribing to a multichannel video
service is as high as it has ever been, but it
is leveling off ,” LRG president Bruce Leichtman
said, noting that pay TV penetration
was at 80% in 2004.

Meanwhile, LRG said
the percentage of people who dropped pay-TV service in the past 12 months is “fairly
consistent” with previous years. About 9% of
multichannel video subscribers with household
incomes under $30,000 said they’re
likely to cancel TV service in the next six
months compared with 2% of those with incomes
over $50,000.

LRG also found that 12% of nonsubscribers
paid to subscribe to a TV service in the past
year. Among current subscribers, 9% of cable
TV customers, 8% of satellite TV customers
and 6% of telco TV customers are likely to
switch from their current provider in the next
six months.

The LRG report, “Cable, DBS & Telcos:
Competing for Customers 2011,” is based on
a telephone survey of 1,500 adults (18 and older)
in the continental U.S. conducted in April
and May. Th e overall sample has a margin of
error of 2.5%, according to LRG.