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TV, Internet, mobile subscriptions could fall $5 billion, says In-Stat

Over the next 12 months, consumer spending on pay-TV subscriptions, broadband and mobile services could decline $5 billion as the nation’s consumers continue to make adjustments for the declining economy, according to the latest estimate from research firm In-Stat.

A new In-Stat report, “US TV Viewers Response to Economic Turmoil,” finds that while spending on these services will remain “about the same” for the majority of customers, about 15 percent plan to cut back. The pull back in consumer spending may be of particular interest to broadcasters because so many of their viewers rely on subscription service –not over-the-air TV- to receive their HD signals.

In-Stat’s latest look at how consumers use these various services also revealed a close tie-in between the Internet and the television. More than 66 million consumers across demographic categories use the Internet while watching TV in their living rooms.

For some male age groups, 40 to 50 percent use the computer while watching television. For women under 40, the comparable figure is 30 percent, said In-Stat analyst Gerry Kaufhold. Look for the link between TVs and the Internet to get stronger as new approaches develop to synchronize the use of Web portals with TV continue, he said.

Phil Kurz is a contributing editor to TV Tech. He has written about TV and video technology for more than 30 years and served as editor of three leading industry magazines. He earned a Bachelor of Journalism and a Master’s Degree in Journalism from the University of Missouri-Columbia School of Journalism.