As history would suggest, U.S. consumers are changing their video consumption behavior as a result of the recession, and in ways that remain generally favorable for service providers. They also are changing behavior in the ways past behavior suggests they would. Namely, they are cutting out-of-home entertainment spending, but making heavier user of their multi-channel video services. So far, broadband access seems resilient as well.
Parks Associates says almost 66 percent of U.S. consumers have altered their spending habits in the fourth quarter of 2008 as a result of the country’s deteriorating economic conditions.
“For household services such as Internet and pay TV, recessionary concerns have less impact,” says Kurt Scherf, Vice President, Principal Analyst, Parks Associates. “Consumers are more likely to cut back on outside entertainment expenses before trimming household services such as home telephone, pay TV, and Internet.”
Parks found that as consumers cut spending on outside sources, this trend creates greater dependence on at-home entertainment services, creating new opportunities for broadband, communications, and entertainment providers.
Digital Media Evolution reports U.S. consumers are most likely to cut their spending on dining out, travel, and out-of-home entertainment. Additionally, nearly 50 percent indicate that they will be spending less on consumer electronics because of economic conditions.
Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary's articles, please visit his columnist page.Edited by Jessica Kostek
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