October 3, 2008, 12:00 AM

Consumers will cut out movies and pay TV before broadband, Jupiter says

Online consumers say the economic turmoil will lead them to shop less and cut back on movies and pay TV—but not on their broadband Internet access. Only 2% see that as a cost-cutting measure they’re likely to take.

The bad economic news may force online consumers to cut back on many things, but broadband Internet access will be among the last to go, suggests a new study by JupiterResearch LLC.

Asked how the current economic conditions would affect their spending, 63% of the online adults polled said they would drive less, 60% shop less, 44% take fewer vacations, 32% go to the movies less often, 12% cancel pay-TV channels-but only 2% say they will disconnect their broadband web service.

“It is noteworthy that broadband has reached this core status, joining the list of utility services along with electricity, phone and cable that consumers consider vital to the household,” says the report, “Television and Filmed Entertainment Spending,” by analyst Bobby Tulsiani.

The results are based on a June survey of 3,730 online results by Jupiter and NPD Group, a research firm that specializes in music and entertainment. JupiterResearch was acquired by Forrester Research this year.

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