US Household Penetration of Telecommunications, 1920-2025

US Household Penetration of Telecommunications 1920 2025

Source: adapted from US Department of Commerce & Nielsen Home Technology Report. US Census Bureau, (Table No. 1440. Selected Communications Media: 1920 to 1998). Internet includes cable, satellite, and WiFi.

The diffusion of telecommunications follows a typical logistic curve: an early phase of adoption, rapid penetration into the consumer market, and then a slowdown as the market becomes saturated and the technology achieves maturity and ubiquity. There is also the possibility of a phase of obsolescence, in which the technology is removed and replaced by something more efficient. Although the telephone was introduced first, its wiring requirements slowed its diffusion. Because of its wireless characteristics and simple technology, the radio diffused rapidly in the years (1920s and 1930s) it was introduced and remained a telecommunication system available in almost every household.

A similar observation applies to television, which rapidly diffused in the 1950s and 1960s through analog broadcasting. In the late 1980s, cable broadcasting became dominant, multiplying the availability of specialized channels. Some communication media standards, such as the VCR, are also marked by obsolescence, since the standard has been officially abandoned and has been replaced by the DVD, which in turn has been replaced by video streaming. The last VCRs were manufactured in 2016, and DVDs are present in fewer than 30% of households in 2025. Analog TV broadcasting was discontinued in the United States in 2009. Substitution has also taken place in the case of telephones. With the introduction of cell phones, the share of households with landlines has substantially declined, dropping to 20% by 2025 as cell phone penetration reached 98%. The radio/television/telephone paradigm that prevailed from 1960 to 2005 has been replaced by the internet/smartphone/television paradigm.

An important factor that facilitates the diffusion of media technology is the availability of content. To boost radio sales in the 1920s, radio manufacturers such as RCA began acquiring radio stations and sponsoring various entertainment shows. This eventually led to the development of “soap operas” as consumer product manufacturers recognized the advertising potential of the new media in the 1930s. A similar process took place with television in the 1950s and 1960s. Even with the digital revolution, the issue of providing content in order to sell devices remains fundamental. For instance, Apple launched its digital store (iTunes) to support sales of its iPod devices (discontinued in 2022), which expanded substantially with the introduction of smartphones and tablet computers. Contemporary flat-screen televisions are commercialized with embedded streaming and subscription services.