They "spend $400 a month, or close to $5,000 a year, keeping their family of four entertained at home. There are the $30-a-month data plans on their BlackBerry Tour cellphones. Their teenage sons each have $50 subscriptions for Xbox Live and send thousands of texts each month on their cellphones, requiring their own data plans. DirecTV satellite service, high-speed Internet access and Netflix for movie nights add more.
By 2004, the average American spent $770.95 annually on services like cable television, Internet connectivity and video games. By 2008, that number rose to $903. Add another $1,000 or more for cellphone service and the average family is spending as much on entertainment over devices as they are on dining out or buying gasoline.
"A subscription model is the perfect drug. People see $15 per month as a very low amount of money but it quickly adds up.”
References:
Dollars Flow Out as Data Flows In, NYT.
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