Research indicates expansion of entertainment-at-home services despite poor economic conditions

by Mindi Sue Sternblitz-Rubenstein | Dec. 11, 2008

digital media evloutionParks Associates announced that almost 66% of U.S. consumers have altered their spending habits in 2008 as a result of the country’s deteriorating economic conditions. These changes have had the greatest impact on entertainment spending outside of the home, according to Digital Media Evolution, a new consumer survey, but also open new areas for growth in customer support services.

Parks Associates reports consumers have cut spending in 2008 primarily on outside entertainment sources, creating greater dependence on at-home entertainment services and new opportunities for broadband, communications, and entertainment providers in offering customer support, self-diagnostic, and troubleshooting solutions.

In 2008, U.S. consumers are most likely to cut their spending on dining out, travel, and out-of-home entertainment. Additionally, Digital Media Evolution found that nearly 50% indicate that they will be spending less on consumer electronics because of economic conditions in the fourth quarter of 2008.

Parks Associates advises providers to take back-to-the-basics approaches to revenue growth and cost savings. Service provider costs for supporting home networks alone could total hundreds of millions of dollars annually. By implementing self-diagnostic and troubleshooting solutions and building remote support capabilities, service providers can turn customer support from a liability into an opportunity, reducing OPEX costs initially and growing revenue-generating customer support businesses in the long term.

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