NPD: Consumers Still Paying for Entertainment Subscriptions

16 Nov, 2009 By: Chris Tribbey

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Even with an unemployment rate of more than 10%, American consumers are still shelling out for their TV and Internet subscriptions, according to new data from The NPD Group.

More than 80% of American households are subscribing to some sort of TV service, and 76% are still paying for an Internet subscription, according to NPD. Seventeen percent are subscribing to an online music service or satellite radio, and 14% are paying for an online gaming subscription. Fourteen percent are subscribing to a home-video service such as Netflix, up 2% from 2008, and 9% of consumers have a smartphone subscription, up 3% from 2008.

“Despite concerns that the recession would cause consumers to reduce spending on entertainment subscription services, most forms of subscription entertainment are doing just fine,” said Russ Crupnick, entertainment industry analyst for NPD.

Traditional forms of entertainment subscriptions aren’t faring as well: 29% are still getting newspaper subscriptions, down 2% from 2008, and magazine subscribers fell 2% as well to 41%.

The data is based on survey responses from more than 10,000 consumers in August.

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