• by Jack Loechner , Staff Writer @mp_research, September 10, 2003

ESPN Deportes, Fox Sports En Español, Drivers for Digital Penetration Among Urban Hispanics

Data from FOCUS: Latino III, the latest Horowitz Associates study on the U.S. Urban Latino market, show that 24% of all urban Hispanics currently subscribe to digital cable service from their cable company. A higher than average (43% vs. 38%) percentage of all Hispanic cable subscribers are digital subscribers, and among "Spanish-dominant" cable subscribers, the percent digital reaches 38%. Importantly, the survey found that one in ten (10%) urban Hispanic cable subscribers also have a satellite dish -- a high percentage compared to cable subscribers in general and again indicative of the competitive impact of Spanish programming.

Among the urban Latinos surveyed, Fox and HBO are mentioned most often as favorite channels (each by 10% of Hispanics surveyed) followed by Discovery and MTV (each mentioned by 8% of those surveyed). Among the "Spanish-dominant" Latinos surveyed, Univision tops the list of favorites. Among "English-dominant" Latinos, none of the Spanish language channels were mentioned. Nevertheless, in response to a separate rating question, four in ten (41%) of those who speak English more than Spanish in the home indicate that having Spanish-language channels is important to their household.

The Latino consumers surveyed for the study show high levels of interest in new programming in both English and Spanish that is targeted towards Hispanics, as reflected in data on interest in new channels ESPN Deportes, Fox Sports En Español, mun2 and SíTV. For each of the four channels tested in the study, between 22% and 30% of respondents said that being able to have that channel would make them more likely to subscribe to (or retain) digital cable for $10 more a month.

Interest in each of the channels varies by demographic subgroup, including important differences by age, sex, and language preference. For example, three out of ten Spanish-dominant Latinos said that channels ESPN Deportes and Fox Sports en Español would make them more likely to get or keep digital cable (32% for each channel).

"The challenge going forward for networks and operators," said Adriana Waterston, Director of Marketing for Horowitz Associates, Inc, "will be in developing an in-depth understanding of the complexities and diversity of the U.S. Latino market. For example, "English-oriented" Latinos are some of cable's most valuable current customers, compared to strong acquisition and growth opportunities among "Spanish-dominant" Latinos.