86% of TV households in the US subscribe to some type of multi-channel video service, according to new research from Leichtman Research Group, a figure in line with recent estimates from Digital TV Research, but higher than figures from GfK. However, there’s a big gap when sorting by household income: TV households with annual incomes less than $50,000 are more than twice as likely to forgo a subscription than those with incomes greater than $50,000 (20% vs. 9%). That implies that cost plays a significant role, a theory supported by arecent study from pivot.
Not only are higher-income households more likely to subscribe to a multi-channel video service, they’re also more likely to spend on it. Subscribers with household income (HHI) of greater than $50,000 spent on average 18% more per month than subscribers below that income threshold. Read the rest at MarketingCharts.
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