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Pay TV: Pricier Than Ever, but Still Popular

U.S. households now spend an
average of $78.63 per month on multichannelvideo
service — up 7.2% from a year ago, according
to a consumer survey conducted by
Leichtman Research Group. By contrast, all
items in the Bureau of Labor Statistics’ Consumer
Price Index increased 1.7% before seasonal
adjustment for the 12 months prior to May 2012.

About 87% of households subscribe to
pay TV, a figure that has stayed flat the last
three years, with higher-income consumers
more likely to take cable, satellite or telco TV.
“The defining characteristic of those who do
not subscribe to a multichannel video service
remains the level of household income,”
LRG president and principal analyst Bruce
Leichtman said.

The study was based on a telephone survey
of 1,369 adults 18 and older across the continental
U.S., conducted in April and May 2012.