TiVo: Average U.S. Pay TV Customer Is Paying $204 a Month for Broadband and Video Entertainment

By Daniel Frankel
( NextTV )
published

With the total monthly bill for connected services approaching the payment for cheap subcompact car, the subscription market does seem a bit ... saturated

TiVo Stream 4K dongle
(Image credit: TiVo)

Americans are paying almost as much for connected living room services as they are for electricity, natural gas and water, according to TiVo's Q4 Video Trends Report.

TiVo's latest survey said that U.S. consumers who still take traditional bundled video are spending, on average, $124.40 a month for pay TV and broadband, up 11% in the six months from when TiVo conducted its Q2 report last year. Add to that a bill Netflix and other subscription streaming services, and pay TV consumers are forking out an average of $203.60 a month for internet and video entertainment. 

TiVo headlined its latest Q4 survey, "The Great Rebundling Possibly Reaching Point of Saturation." And yes, there are other indicators that consumers simply can't afford to buy anymore Peak TV. 

Within the next six months, a quarter of respondents said they are likely to cancel one or more SVOD services. 

The average number of total video services used by U.S. consumers reached 8.8 in the second quarter of 2021, up over 6.9 at the end of 2020. But indicating a post-pandemic deceleration, the average grew to just 8.9 services in the fourth quarter of last year. 

TiVo Q4 Trends Reportg

(Image credit: TiVo)

Of these 8.9 service, 6.9 are paid offerings that include not just SVOD, but TV Everywhere apps tied to pay TV service. Meanwhile, 2.4 of these services, on average, are free and ad supported. 

In New York, respondents to TiVo's survey reported using an average of 13.4 video services, while Idaho checked in as the nation's lowest with an average of just 5.3 services. 

Notably, TiVo said that 26% of respondents described themselves as "cord revivers," returning to traditional bundled video service after cutting the cord. 

Meanwhile, among types of video services and their overall "UX," SVOD platforms reported the highest level of customer satisfaction (82%), while AVOD checked in with the lowest (59%). 

TiVo Q4 Video Trends Report

(Image credit: TiVo)

Twenty-seven percent of respondents said they subscribe to a virtual MVPD service, with the average vMVPD bill coming in at $55.65. 

Not surprisingly, Roku and Amazon Fire TV ranked as the top connected TV players. 

TiVo Q4 Video Trends

(Image credit: TiVo)
Daniel Frankel
Daniel Frankel

Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!