The Internet's explosive growth rode the back of the mighty economic expansion of the '90s. Much of that has to do with market saturation. But how resistant existing online subscriptions are to economic downturn is untested. Certainly, being online has become a necessity for many. Lower income households now account for about a third of online subscriptions, or 16 million homes.
Basic cable is extremely recession resistant.
During the 1990-92 economic slump, subscribers in poverty areas gave up phone service to afford cable. Being online hasn't rooted nearly as deeply among lower income households, particularly because they are the newest subscribers. And, of course, income classifications go out the window when the primary wage earner is laid off. More likely than outright cancellations by consumers would be a trend to discount pricing. In addition, credit card debt could haunt online subscriptions.