US Consumers Could Drop Spending on Mobile, Broadband and Pay TV Services by Nearly $5 Billion due to Economic Turmoil, but Internet Video will Expand
SCOTTSDALE, Ariz., March 9, 2009 -
US Consumer spending on Subscription-TV, Broadband, and Mobile Services will be "about the same" for most consumers, but about 15% intend to cut back. As a result, In-Stat http://www.in-stat.com estimates that consumer spending across these three segments could see nearly a $5 billion 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% of respondents using a PC while watching TV, and about 30% 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 billion opportunity.
The biggest decrease in spending on mobile, broadband and subscription TV services will come from households with income below $35K.
Analysis of impact of current economic downturn on consumer behavior regarding TV viewing, broadband use, and spending across mobile, broadband and subscription TV.
Results and analysis of a late 2008 US consumer survey on TV viewing, Internet usage habits and multitasking while watching TV.
Examination of consumers’ interest in Internet TV services.
Exploration of new hybrid “Lite” subscription TV services.
This research is part of In-Stat’s Consumer Media & content service. “Content is King,” but consumers clearly have preferences about the value of content and services, as well as what devices they use. Technology advances in digital rights management (DRM), internet TV, and cross media programming offer content producers’ new channels for distribution, but pose major disruptions to existing pay TV and mobile service provider business models. Consumer Media & Content (CMC) provides critical insights into how cutting edge technology, combined with new content delivery methods and consumer preferences, will influence the market for digital entertainment.
Sign up to receive email Market Alerts on this, and related topic
About In-Stat
In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology and semiconductor vendors, infrastructure and device manufacturers, service providers and media companies worldwide rely on partnerships with In-Stat’s tenured, experienced staff and on our in-depth market intelligence to support critical business, product and technology decisions.
In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.
