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the study prospectus

ALMOST 1 OUT OF 2 (45%) MULTICHANNEL SUBSCRIBERS WOULD CONSIDER GETTING TV FROM THEIR PHONE COMPANY

 

CABLE MORE VULNERABLE THAN SATELLITE: AS SPENDING ON MULTICHANNEL SERVICES INCREASES, OVER HALF (51%) OF CURRENT DIGITAL CABLE SUBSCRIBERS WOULD CONSIDER DEFECTING TO PHONE COMPANY FOR TV IF SERVICE WERE COMPETITIVELY PRICED

 

Survey Measures Interest in New Digital Features; On-Demand Local Programming and Converged Broadband Services Popular Among Younger Multichannel Subscribers

 

August 8, 2007 – Horowitz Associates, Inc.’s annual State of Digital and Interactive Television survey of over 800 multichannel customers finds that 45% of those surveyed would consider getting competitively-priced TV service from their phone company.  This increasingly competitive multichannel market is characterized by an increased spending on services: the survey finds that spending overall for multichannel services has increased by eighteen percent (18%) for cable subscribers and 10% for satellite subscribers in the past year.  

Over half (51%) of digital cable customers, who are spending an average of $81.85 a month for their service, say they would consider switching, as do forty-three percent (43%) of analog cable subs, who spend $49.52.  Satellite is not immune, but somewhat less vulnerable, to this competitive threat.  Four in ten (41%) of satellite subs, spending an average of $64.00 a month for their service, say they would consider switching.

 New Digital Features Popular Among Younger Multichannel Subscribers

 Multichannel subscribers were asked to rate their interest in the newest digital features.  Over two in ten (22%) multichannel subscribers are interested (4/5 interest ratings) in local, on demand programming, 20% are interested in a service like Apple TV, and 18% are interested in a Slingbox.  Fourteen percent (14%) say they would be interested in having YouTube on their TV.  Importantly, interest is highest among younger multichannel subscribers (18-34 years old): One-third (32%) are interested in local, on demand programming and a Slingbox, respectively; 29% are interested in an Apple TV-type service and 23% are interested in YouTube on TV.

 Adriana Waterston, Vice President of Marketing and Business Development for Horowitz Associates, Inc. notes “The challenges of this competitive situation is balanced by the opportunities for new revenue from advanced, digital features.  It’s important to keep in mind that as consumers become more savvy about digital services, they will be looking for the provider that can deliver the best value for the best technology.”  Howard Horowitz, President of the company, sums up his take on the findings: “The pie is bigger, and the stakes are higher.”

 About the Study: These findings represent only a small part of State of Digital and Interactive Television 2007, the sixth installment of Horowitz Associates’ study on the market for digital and interactive television services.  The study takes a detailed look at levels of subscription and attitudes toward digital services and likely purchase behavior, providing valuable tracking data on how this highly competitive market is developing.  Competitive positioning and consumer perception of the various providers and services is covered in depth.  The report also provides in-depth data and analysis on penetration, awareness, usage and perceived value of interactive services such as On-Demand, DVR and HDTV, among others. For more information, please contact Adriana Waterston, Vice President of Marketing and Business Development at 914-834-5999.

About Horowitz Associates, Inc.: Horowitz Associates, Inc. is a market research and consulting company based in Larchmont, New York.  The company conducts custom research and consulting for clients in broadband and new media, including cable television, telecommunications and the Internet.  In addition, Horowitz Associates publishes a variety of annual industry studies including State of Cable and Broadband Urban Markets ^tm, Making the Connection: Consumer Broadband Lifestyles, ^tm Broadband Content and Services, ^tm State of Digital and Interactive Television ^tm, FOCUS: Latino ^tm, FOCUS: African America ^tm  and State of Cable and Broadband ^tm.