Centris: Cable Bills on the Rise

Data from latest report shows expanding technology consumption and expanding Internet usage

April 16, 2009

2 Min Read

FORT WASHINGTON, Pa. -- Centris today released its report "Insights: Semi-Annual Market Analysis,”which provides information on household consumption of products and services relating to media, communication andvideo services in the United States. While the research indicates a continuing expansion of technology and expandingadoption of Internet usage at the household level, there is some flattening of consumer interest in key offerings providedby the communications and entertainment industries.

The Centris report is based on the company’s US Communication and Entertainment Omnibus survey. The survey tracksover 100 communications, entertainment and technology areas on a daily basis – including technology deployed in thehome, service providers and media consumption. Each week the ongoing survey program completes approximately 1000interviews. Findings from the Centris Semi-Annual Market Analysis are used by clients to evaluate and develop marketingplans and strategies for dealing with the changing threats and opportunities brought on by technology convergence.

Selected findings of the current "Insights: Semi-Annual Market Analysis" include**:

Technology continues to permeate US households:

o Households (HHs) that reported having a large screen TV set (32”+) grew from 49% to 55%, a 15% gainthis period compared to the 9% growth between 2006 and 2007.

o Fifty million HHs report having a digital TV set.

Internet usage by consumers is growing:

o 64% of all US HHs (not people) access the Internet each month, reflecting a 9% annual gain.

o Nearly 35 million HHs or 46% of active Internet HHs made a purchase over the web each month, anincrease of 18% since last year.

o Broadband access is rising; 80% of all HHs accessing the Internet did so via Broadband, a 17% increaseover a year ago, which is the same increase between 2006 and 2007.

Though prices are up, consumers are hesitant to buy some key services:

o HDTV service lags behind HDTV hardware; nearly 46 million HHs report owning a High Definition TV setwhile only about 34 million HHs have HDTV service.

o Pay Per View Usage is flat; 12.6 million HHs ordered Pay Per View programs each month, similar to lastyear.

o Internet service bills saw modest rise; the average ISP bill is $36.74, which is a 10% increase comparedto the $0.75 increase between 2006 and 2007.

o Cable service bills are on the increase; the average cable bill is $71, an increase of $5 since a year ago,compared to no change between 2006 and 2007. On average, nearly 40 million HHs subscribe to DigitalCable.

(**Note: the time period referred to throughout the report reflects an average month from July through December 2008,unless otherwise specified).


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