As part of
State of Broadband Urban Markets IV, a survey of 2,000 consumers and around 50 cable operators in the country’s civic areas was carried out. According to the results, some 25% of homes in built-up areas have digital cable, above the national average of 21%.
Overall cable penetration in urban markets stands at 68% with digital cable penetration having risen from 34% in 2002 to 38% today among cable subscribers interviewed for the study.
Consumers were also asked about the likelihood of them subscribing to digital cable within the next six months. It is evident that penetration of digital cable among cable subscribers could climb to 49% if those consumers likely or very likely to subscribe actually do.
By comparison, satellite penetration is currently at 15% but the technology could soon be in one out of four urban homes as 8% of consumers are considering getting a dish and 4% have already decided to purchase one.
Reaching multicultural viewers The survey revealed disparities between different races with penetration of digital cable among black and Hispanic cable subscribers (56%) likely to remain higher than among Asians (49%)and whites (45%). Meeting the programming and language needs of multicultural consumers is seen as integral to the uptake of digital television in the US.
“What clients of State of Broadband Urban Markets IV have known since 1999 is now almost common knowledge, that providing services and content for America’s multicultural consumers is essential to achieve success in the ever-increasing competitive environment for TV and broadband services,” commented Howard Horowitz, President of Horowitz Associates.
“This study provides a clear roadmap for networks and cable operators striving to fully understand the complexities of the multicultural, urban market. It is not enough to say ‘if we build it, they will come’. Digital tiers need to be tailored to meet the specific needs of Latino, Black and Asian consumers, while at the same time acknowledging that multicultural consumers as a whole represent a unique and growing segment of America-and an incredible market opportunity.”
Video services The study also examined the potential impact of emerging video technology. Some 32% of cable/satellite subscribers (including current digital subscribers) said that access to basic video on-demand (VOD) would make them more likely to pay $10 more a month to have digital cable service. The comparative figure for movie VOD, at $3.95 a movie, was 30%.
Two out of ten subscribers would be willing to pay to have a Tivo-like personal recorder built into their set top box while 17% are prepared to invest in a wireless home entertainment network.
