Research Finds Key Differences Between Cable and Satellite Subscribers
- by October 5, 2000
TechTrends' latest findings reveal that only 47% of cable subscribers would pay more than $100 for a fully loaded ITV set-top box, compared to more than 55% of DBS satellite subscribers.
And while satellite subscribers are more interested in time-shifting features (pausing live TV, ad skipping) than cable subscribers, they are less interested in personal TV channels.
Other results show that 40% of both cable subscribers and satellite subscribers access the Internet on their PC and watch TV at the same time, and 60% of each group are interested in Web-browsing and email through their TV.
But more than half of all DBS subscribers (50% of DirecTV, 54% of Dish Network) spend more than 10 hours per week accessing the Internet on their PC, compared with only 46% of cable subscribers.
And half of DBS subscribers (51% of DirecTV, 48% of Dish Network) watch more than 20 hours of TV per week, while only 38% of cable subscribers watch more than 20 hours per week.
"Right now, consumer demand is too complex for any one product or service to appeal to everyone," said Laurence J. Bloom, director of research and consulting.
"To win in this market, companies need to understand that certain consumer segments have very different preferences and attitudes toward interactive television. These companies must also know how consumers differ, why these differences exist, and how they can determine the success of a given product or service."
TechTrends believes that companies who are developing digital set-top boxes and interactive applications, such as Motorola and Liberate Technologies, need to develop next generation products that reflect the behaviors, opinions and price sensitivity of cable and satellite subscribers.
Likewise, cable and satellite providers, such as AT&T Broadband, Time Warner Cable, DirecTV and EchoStar Communications, must know their customers very well before they invest heavily in ITV services.
