Hey, Big Spender

by , Aug 30, 2006, 3:00 AM
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Hey, Big Spender

Adriana Waterston, Vice President of Marketing and Business Development at Horowitz Associates, says "...We know that historically, African-Americans are big spenders when it comes to television and entertainment services, and have been loyal to cable. This study shows indications that the competitive market for African-American subscribers is heating up, as it already has for Latino subscribers."

According to Horowitz Associates survey, FOCUS: African-America, African-American cable subscribers pay, on average, $58.17 for their cable service, compared to $54.00 among total urban cable subscribers. African- Americans with digital cable report an average monthly cost for their cable service at $66.74,

compared with an average of $64.36 among total urban digital cable subscribers, and among those with satellite, monthly spending is reported at $63.70 a month, compared with $58.73 among total urban satellite subscribers.

Internet services overall and broadband services in particular, are areas of potential strong growth among African-Americans. Based on future intentions:

  • Internet penetration among urban African-Americans could grow from 45% to 62%
  • High speed Internet penetration will grow from the current 28% to 46%
  • DSL has an edge over cable modem service for new installs when it comes to the type of service urban Black/African-Americans are considering.

Survey data indicate that cable penetration may decrease, while satellite penetration increases in African-American urban homes. Based on data from consumers who are considering or have already decided to get or switch their multichannel service, penetrationof satellite dish services among urban African-Americans could rise from 16% to 22% while penetration of digital cable could go from 30% to 23%.

For more information on this PDF summary, please visit here.

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