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The Stretched Consumer

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Old 04-23-2010, 08:32 AM   #1  
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Join Date: Jun 2004
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Default The Stretched Consumer

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THE STRETCHED CONSUMER
Consumers spent an average of $3,374 in 2008 on entertainment, communications and reading. How that spending shook out by household income:

HOUSEHOLD INCOME 2008 ENTERTAINMENT SPENDING Under $30,000/yr $1,785 $30,000 to $60,000/yr $3,046 $70,000-plus/yr $5,354 SOURCE: Wolzien LLC
GROSS VIDEO MARGINS
According to Sanford Bernstein cable and satellite analyst Craig Moffett, rising programming costs have put a hurting on gross video margins (gross profit as a percentage of video revenue) over the past five years:

2004 2005
2006
2007
2008 2009
Comcast 68.1% 68.2% 67.8% 67.6% 66.2% 63.6% Time Warner Cable 68.2% 66.8% 64.8% 63.1% 62.2% 60.6% DirecTV 58.9% 58.7% 57.6% 57% 57.1% 57% SOURCE: Company reports and Sanford Bernstein estimates
http://www.multichannel.com/article/...Tapped_Out.php
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