Spending on cable and satellite services are up

Ben Drawbaugh
B. Drawbaugh|11.20.09

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Contrary to popular belief, this economy and the digital transition have actually motivated more people to subscribe to pay TV. You often hear those in the "future is now" camp say that people are looking for ways to save money and so they're looking to free internet TV alternatives and over-the-air TV, but it just isn't true. Our first indication of this was a few weeks ago when Nielsen released a study that showed that about 25 percent of those who relied on antennas for TV, just switched to cable or satellite instead of getting a free converter box; and now the NPD group is reporting that the monthly per-capita spending on entertainment subscriptions is now up to $115 a month. At this point the internet video movement isn't looking that disruptive after all, but with all the technology out there, we just have to believe that something is going to disrupt the existing archaic model.
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