• by Jack Loechner , Staff Writer @mp_research, March 6, 2002

State of the Media Economy 2002 is a supplement to Horowitz Associates forthcoming State of Cable and Broadband 2002, an annual, national survey of consumers and cable operators. State of the Media Economy 2002 was designed to assess the effects of Sept. 11th, the recession, and other economic conditions on consumers and the industry. The report finds that demand continues for high-speed Internet, more channels, bundled services and Interactive features.

"In these tight economic times, consumers are looking for greater television choices, Internet services and interactive features that enhance their home entertainment and information experience" said Howard Horowitz, president of Horowitz Associates, Inc.

One out of three cable television subscribers say they are more concerned about my personal finances than before 9/11. These same consumers are as likely or more likely to buy high-speed Internet service, add premium cable channels, pay $10 more per month for digital cable and get bundled cable, phone and Internet service as are those not more concerned about their finances since Sept 11th. Thirteen percent of respondents say they plan to cut costs by spending less on home entertainment such as cable television and renting movies.

"The survey confirms the strong level of consumer interest in interactive services, especially ones that provide added convenience," said Craig Leddy, head of Interactive TV Works, Inc.

The following is a sampling of responses among total adult respondents:
Since the events of September 11th...
- I am much more interested in what is going on in other parts of the world: 52%
- Very little in my life habits has changed: 50%
- I am more concerned about my personal finances than before: 31%
- My family and I are spending more time at home or with relatives and friends instead of going out: 25%
- My television viewing habits have changed: 21%
- Television is more important now in my life than before:18%
- Being online is more important now in my life than before (among Internet users): 10%

Regarding new digital services:
- 50% of cable subscribers who plan to spend less on home entertainment are interested in new basic digital channels from major programming companies.
- 47% of those who are more concerned about finances are likely to get bundled cable, phone and Internet service for a 10% discount.
- -41% of those concerned about finances are interested in video-on-demand.

You can read more here.