According to a new study published by In-Stat, most U.S. households will continue their television, cell phone, and Internet access subscriptions without a change. Only about 15% indicate that they plan to cut back, a change that is more common among households with annual incomes less than $35,000. Even though this is a relatively small portion of the total, the changes could cost the TV, wireless, and broadband subscription services as much as $5 billion over the next 12 months.
Just one look at Detroit’s balance sheets show that U.S. consumers have made some major changes in their spending habits as a result of the global recession. As a result, it might be a little surprising that so many people are planning to maintain their current level of service for these entertainment and communication services. As people cut back spending in other parts of their lives, however, these services are a key part of the “cocooning” behavior that has people staying home more. As other activities become more expensive, these provide a source of entertainment and information.