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Consumers Spending More on Cable TV Service Than Satellite

August 20, 2003|From Bloomberg News

The average amount consumers spend on cable television service has risen above the average satellite TV expenditure, according to a report.

Consumers now spend an average of $49.62 a month on cable TV service, compared with the $48.93 they spend on satellite TV, according to a report by J.D. Power & Associates, based in Westlake Village.

The higher cable TV spending is a result of consumers buying services such as video-on-demand and digital TV, which offers more channels and a sharper image. Monthly spending on satellite TV has increased 8% in the last five years, compared with a rise of 41% on cable TV, J.D. Power said.

The higher spending on cable TV comes as satellite television has been gaining market share. About 17% of U.S. households now have satellite subscriptions, compared with 7% in 1998. Households subscribing to cable TV declined to 60% from 68% over the same period.

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