SEATTLE--(BUSINESS WIRE)--doxo, the innovative web and mobile bill pay service, today released its U.S. Cable & Internet Market Size and Household Spending Report for 2022, revealing the relative stability of U.S consumer Cable & Internet spending despite the overall rise of U.S. goods, services, and average consumer household expenses across the top categories – up 6% year over year according to recent doxoINSIGHTS data. doxoINSIGHTS’ statistical analysis of actual household payments toward cable & internet bills across 97% of U.S. zip codes helped size the overall market, revealing that Americans spend $146 billion annually on cable and internet bills. The report also found that the 82% of U.S. households with a Cable & Internet bill spend $114 per month, or $1,368 per year – or $1,122* per year when averaging across all U.S. households. The report breaks out the U.S. household spending market size; percentage of households that pay each bill; and average monthly and annual bill pay costs by state, largest metro areas and cities based on population.
Compared with doxo’s 2021 analysis of the 147 billion Cable & Internet market (finding consumers pay $116 per month, $1141 per year), 82% of American households that have this bill have shown flat Cable & Internet spending year over year, in stark contrast to the surge of consumer spending on streaming services1 and mobile content2. As the availability of over-the-top (OTT) platforms continues to explode, consumers continue to cut the cord, opting for streaming services to consume content, with 93% of consumers planning to increase their streaming options (or make no changes to their existing plans). Additionally, while ‘stagflation’ of the US economy is driving up the overall price of goods and services for Americans, across the board, the Cable & Internet providers are not seeing consumer spending on par with this overall trajectory.
“Consumer consumption of streaming content has never been higher, thanks in large part to the over-the-top (OTT) platforms and content providing more choice and increased consumer appetite and consumption,” said Jim Kreyenhagen, VP of Marketing and Consumer Services at doxo. “While our recent doxoINSIGHTS United States of Bill Pay report showed an increase in consumer spending across nearly every other category in line with overall rate of inflation, cable and internet spending has not kept pace. While the decline in consumer spending isn’t a complete surprise given the intense competition from OTT content, what’s a little surprising is that it is one of the only bill categories not affected by the current inflation rate.”
The Potential Impact of the Affordable Connectivity Program on Cable & Internet Bills
Notwithstanding the slowing growth, the increase in WFH and distance learning in the pandemic, increased stress on American broadband and Americans wallets. The FCC’s Emergency Broadband Benefit was launched to subsidize increased cable and internet use and corresponding bills. The Biden Administration has since extended this subsidy via the Affordable Connectivity Program, a $14 billion dollar program aimed at alleviating this hardship, with up to $30 per month toward internet service for eligible households (and up to $75 per month for households on qualifying Tribal lands), and a one-time discount of up to $100 to purchase a laptop, desktop computer, or tablet from participating providers if they contribute a set amount toward the purchase price. Given the average US household spends $1,122 per year on cable and internet service, this assistance of up to $360 per year for each qualifying household to offset cable, adds up to a 32% savings for the average household cable.
“doxoINSIGHTS’ Cable & Internet Market Size and Household Spending Report leverages our proprietary dataset to help make the U.S. bill pay economy transparent and understandable for all,” continued Jim Kreyenhagen, VP of Marketing and Consumer Services at doxo. “Alongside our app—which simplifies the task of staying on top of bills to help improve financial health—these reports support doxo’s ongoing mission to empower our consumer users, service providers, and financial service providers alike to make better decisions.”
The doxoINSIGHTS 2022 U.S. Cable & Internet Market Size and Household Spending Report Findings
doxoINSIGHTS leverages doxo’s unique, aggregate, anonymized bill pay data comprised of actual bill payment activity to confirmed household service providers across the country. The U.S. Cable & Internet Market Size and Household Spending Report breaks out the household spending market size; percentage of households that pay each bill; and average monthly and annual bill pay costs by state, the 50 largest US cities based on # of households, and those cities with 40k or more residents. Key findings include the following:
- Total Market Size: $146 billion spent per year
- Average Monthly/Annual Cost: $114 spent per month; $1,368 spent per year
- Percent of Households: 82% of U.S. households pay Cable & Internet bills
- Average Annual Cost per U.S. Household: $1,122 per year*
- Percent of Annual Income: Cable & Internet bills amount to 2% of consumers’ income per year
States with the Highest Cable & Internet Bills
State |
Monthly Amount |
Average Annual
|
% of Households w/ Bill |
New Hampshire |
$140 |
$1,433 |
85% |
Maine |
$134 |
$1,394 |
87% |
Alaska |
$130 |
$1,204 |
77% |
Delaware |
$129 |
$1,096 |
71% |
Maryland |
$126 |
$940 |
62% |
Access Cable & Internet Household Bill Pay Data for all 50 states here.
Biggest U.S. Cities With the Highest Cable & Internet Bills
U.S. City |
Monthly Amount |
Average Annual
|
% of Households w/ Bill |
New York |
$146 |
$1,122 |
64% |
San Diego |
$137 |
$1,363 |
83% |
San Antonio |
$135 |
$1,436 |
89% |
San Francisco |
$128 |
$1,270 |
83% |
Birmingham |
$125 |
$1,396 |
93% |
Access Cable & Internet Household Bill Pay Data for the 50 biggest U.S. cities here.
For more information, or to view the entire report, visit www.doxo.com/insights/.
*Average Monthly Bill x % of Households with Bill x 12 months per year = Average Annual Cost per U.S. Household.
About doxoINSIGHTS
doxoINSIGHTS provides direct insight into household financial health and spending activity by leveraging consumer surveys and doxo’s unique aggregate bill pay data set, comprising actual bill payment activity to confirmed household service providers across the country. doxo data brings together the broadest available data set for analyzing actual household bill payment activity, pulling from over 7 million paying consumers across over 97% of U.S. zip codes. doxo’s payment network covers over 120,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This uniquely broad statistical foundation powers doxoINSIGHTS reports – uncovering key trends for household financial health and bill payment behavior.
About doxo
doxo provides simple, secure all-in-one bill payment to any biller, with any payment method, on any device. A doxoPLUS subscription adds free bank payments and five essential financial protections that boost household financial health. Through these services, doxo currently serves over seven million users who can make payments to over 120,000 local and national businesses, making doxo the largest bill pay directory in the nation. Billers on the network get paid directly, fast and free – and consumers have complete bill pay independence over when and how they pay their bills. doxo investors include MDV, Sigma Partners, and Bezos Expeditions. doxo is based in Seattle, WA. For more information visit www.doxo.com.
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1 PWC, 2020 |
2 Statista, 2022 |
