Tuesday, March 24, 2009

Recession Barely Touches Cable Modem Subscribership

Only two percent of cable modem households report that they are "somewhat" or "very likely" to cancel their cable modem service in the next six months, a new study sponsored by the Cable & Telecommunications Association for Marketing suggests. Nearly 95 percent of cable modem households surveyed report that they plan to retain their cable modem service, despite current economic conditions.

Cable TV service likewise is showing similar strength despite the economic downturn, the study suggests. In fact, cable households have become more loyal to their TV service over the past three months, the study suggests. About 81 percent of respondents who have cable TV service or digital cable TV service report that they are "not at all likely" to cancel their cable TV service, compared to November 2008, when 71 percent of respondents indicated a similar certainty about keeping cable TV. In November 2008 just 77 percent of respondents with digital cable TV said they were so certain.they would keep digital cable.

One might draw several conclusions from the survey results. First, one might say that broadband Internet access now is a foundation service for users who buy it. Second, one might conclude that the traditional resilience of core communications and entertainment services has not changed in the current recession, the first where there has been mass adoption of wireless and broadband Internet access services.

Overall, lifestyles and buying habits are changing, though, the study also finds. Consumers report being likely to spend more time at home watching TV (35 percent) and less time doing activities outside the home. That "cocooning" suggests one reason why broadband and television might be so resistant to economizing moves.

More than half of U.S. households currently report doing less shopping (53 percent), eating out less (52 percent), going on fewer vacations (51 percent) and attending fewer concerts and theatre performances (50 percent) because of economic conditions.

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