Cable TV at 68% Penetration, but Dishes Poised for 25% in Urban Homes

by Jack Loechner, Jul 29, 2003, 12:00 AM

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Cable TV at 68% Penetration, but Dishes Poised for 25% in Urban Homes

A new telephone survey of 2,000 consumers and approximately 50 cable operators in US urban markets by Surveys Unlimited division of Horowitz Associates, indicates that cable TV penetration in urban markets is currently at 68%, with digital cable penetration rising from 34% in 2002 to 38% among cable subscribers interviewed for the study.

Satellite penetration is currently at 15%, but dishes could soon be in one out of four urban homes, as 8% of urban consumers surveyed are currently considering getting a dish and 4% have already decided to purchase one.

Data indicate that:

• penetration of digital cable among cable subscribers in urban markets could rise to 49% of all cable households if those consumers likely or very likely to subscribe actually do.
• Penetration could increase from 46% to 56% of Black cable households;
• from 45% to 56% among Hispanic cable subscribers;
• and from 35% to 49% among Asian cable subscribers.
• Among white, non-Hispanic cable subscribers surveyed, potential penetration promises to rise only 7 percentage points, from 38% to 45%.

"What clients of State of Broadband Urban Markets reports since 1999 have known 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." notes Howard Horowitz, President of Horowitz Associates.

Findings reveal that:

• 67% of African-Americans, 57% of Asians and 54% of Latinos consider it important to have urban-oriented channels with entertainment, news, sports and informational programs targeted to multicultural audiences.
• 32% of cable/satellite subscribers say that access to "basic VOD" and/or movie VOD for "would make them more likely to pay $10 more a month to have digital cable service."
• 20% of urban cable/satellite customers are willing to pay to have a Tivo-like personal recorder built into their set top box.
• 17% would pay for a wireless home entertainment network.

For more information contact: Adriana Waterston, Director of Marketing, Horowitz Associates, Inc.

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