Consumer Cable and Internet Bills Remain Steady - Up Only 1.7% - Despite Inflation Swelling U.S. Household Expenses

Annual doxoINSIGHTS Report Reveals the Average U.S Household Spends $1,161 Per Year on Cable and Internet.

A new report released today by doxo reveals the relative stability of U.S consumer cable and internet spending, despite the overall rise of U.S. goods, services, and average consumer household expenses across the top categories. Seeing only a 1.7% increase from this time last year, doxo’s Cable & Internet Market Size and Household Spending Report for 2023 found that the 82% of U.S. households with a Cable & Internet bill spend $118 per month, or $1,416 per year – or $1,161* per year when averaging across all U.S. households.

doxoINSIGHTS’ statistical analysis of actual household payments toward cable and internet bills across 97% of U.S. zip codes helped size the overall market. The 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, as well as the 50 largest U.S. cities (based on the number of households), and those cities with 40k or more residents. Key findings include:

• Total Market Size: $152 billion spent per year
• Average Monthly: $118 spent per month
• Percent of Households: 82% of U.S. households pay Cable & Internet bills
• Average Annual Cost per U.S. Household: $1,161 per year*
• Percent of Annual Income: Cable & Internet bills amount to 2% of consumers’ income per year

Compared with doxo’s 2022 analysis of the 147 billion Cable & Internet market (finding consumers pay $114 per month, $1,368 per year), Americans may see a slight increase in their cable and internet bills, due to hidden fees and lack of regulation from the government on local and national levels, allowing providers to control the rate increases. As more consumers choose to cut the cord and switch over to streaming services, the total usage of television watching dropped 5.1% since February 2023. As streaming services continue to pump out content and cable prices continue to increase, along with other household bills, the future of traditional television watching is waning with changing consumer behaviors and preferences.

“While there are indicators that the economy is starting to cool, recent doxoINSIGHTS findings reveal that 73% of Americans say inflation is impacting their ability to pay household bills,” said Liz Powell, Senior Director of INSIGHTS at doxo. “Our 2023 Cable & Internet Market Size and Household Spending Report provides consumers a snapshot of how their cable and internet bills may have changed from last year, providing a clear geographical breakdown for where these bills are the highest or cheapest – all while fostering a more educated and economically conscious bill payer.”

The FCC’s Investigation into Internet Data Caps and the Affordable Connectivity Program

As consumers continue to struggle with justifications for internet price increases, the FCC opened an investigation to understand how home internet plans are being impacted by data caps from major internet providers, along with trends in data usage. While the FCC has no formal plan in place to combat data caps, or the fees associated with overuse of data, internet access is fundamental in everyday life and grows with necessity each year. 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 U.S. household spends $1,161 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 31% savings for the average household cable.

“doxoINSIGHTS’ Cable & Internet Market Size and Household Spending Report leverages our proprietary dataset to help Americans recognize how much their average monthly cable and internet bill compares to the rest of the country,” adds Powell. “This report, alongside the plethora of data provided by doxo throughout the year, supports doxo’s ongoing mission to empower our consumer users, service providers, and financial service providers alike to make more informed decisions.”

States with the Highest Cable & Internet Bills

Access Cable & Internet Household Bill Pay Data for all 50 states here.

Biggest U.S. Cities With the Highest Cable & Internet Bills

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 8M 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 delivers innovation that transforms the bill pay experience for consumers, billers and financial technology providers. For over 8M consumers, doxo’s all-in-one bill pay makes it simple to organize and pay any bill on any device through a secure checkout. For billers, doxo’s network-driven platform enables online and mobile payments with a ridiculously simple integration, radically lower costs, and game-changing features that are unavailable with legacy bill pay vendors. For fintech partners, doxo delivers financial innovations to consumers across 97% of US Zip Codes, paying from more than 5,000 financial institutions to over 120,000 billers in 45+ service categories. For employees, doxo is a creative, ever-learning team that is passionate about building fintech tools that dramatically improve the bill pay experience. For investors, doxo provides an extraordinary opportunity to invest alongside Jackson Square Ventures, MDV, and Bezos Expeditions to disrupt a market that accounts for over $4T of US Household spend. To learn more about America’s leading bill pay network, visit doxo.com.

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