Tuesday, October 13, 2015

Cable Still Rules, But Trouble Looms

The average household spent an astonishing $723 on cable and satellite television service in 2014, according to the Consumer Expenditure Survey. That's 5 percent more than in 2013 ($691), 7 percent more than in 2010 ($675), 14 percent more than in 2006 ($633), and a whopping 64 percent more than in 2000 ($442), after adjusting for inflation. Cable ranks among the top 15 items on which the average household spends the most.

Although many have predicted the demise of cable as more Americans adopt video streaming, average household spending on cable and satellite service continues to grow. But another statistic reveals a troubling trend—a decline in the customer base. Only 70 percent of households purchased cable/satellite service during an average quarter of 2014, down from 74 percent in 2010. The decline is biggest among younger householders...

Percentage spending on cable/satellite service by age of householder, average quarter 2014
(and percentage point change since 2010)
Under age 25: 39% (-10.2)
Aged 25 to 34: 59%  (-9.1)
Aged 35 to 44: 70%  (-5.0)
Aged 45 to 54: 73% (-3.5)
Aged 55 to 64: 76% (-2.0)
Aged 65-plus: 78% (-0.1)

Average household spending on cable and satellite television service continues to rise, but only because a shrinking customer base is spending more.

Source: Demo Memo analysis of the Consumer Expenditure Survey

No comments: