Digital Cable numbers...............................
prnewswire.com
Digital Cable Unleashes More Options; Digital Opens a Whole New World for Cable Operators But Confuses Customers
WASHINGTON, April 6 /PRNewswire/ -- The long awaited transition from
analog television to digital is finally underway. Digital cable allows cable
companies to offer not only more channels of programming, but also
interactivity i.e. video-on-demand, on-screen TV guides, shopping services
etc. The Strategis Group's latest publication Marketplace for Digital Set-Top
Boxes projects the number of digital cable subscribers to more than double in
each of the next two years on the way to reaching 47.8 million in 2005.
Digital Cable Subscribers Penetrate 70% of Total Basic Subscribers by 2005
(in 000's)
1998 1999 2000 2001 2002 2003 2004 2005
1,300 3,327 8,119 14,464 22,131 29,986 38,863 47,807
Source: The Strategis Group, Inc.
"Consumers appear to be excited about the digital revolution, however
cable companies must be careful to fully explain digital's impact on
television viewing," said Jeff Krohl, consultant at The Strategis Group. "The
primary advantage of digital cable is channel compression that allows for more
programming -- not necessarily better picture and sound quality -- better
picture and sound quality comes with high-definition television." Recent
survey research by The Strategis Group suggests there is some confusion among
the difference between high-definition television and digital cable.
Of households surveyed who watch three plus hours of television per day,
almost 70% did not know the difference between high-definition television and
digital cable. When asked about digital cable, more than eight in ten survey
respondents (81%) rated better picture quality extremely important, followed
by better sound quality (57%), and more channels of programming (53%).
Digital cable and its interactive ability will be brought to the customer
courtesy of the digital set-top box. The digital box will open the consumer to
the digital world but not necessarily to movie theatre picture quality.
Eliminating any confusion will be particularly important to cable operators
once digital set-top boxes are sold retail. "Cable companies will be held
accountable for any misgivings of digital television whether it is their fault
or not," commented Carol Mann, director, cable & satellite at The Strategis
Group. "If consumers purchase a digital set-top box thinking they will receive
pristine pictures from digital cable and they do not, the cable operator will
be the first to hear about it."
Cable operators would prefer to have consumers purchase digital set-top
boxes, saving the operators from carrying the capital investment of the
digital set-top boxes. However, consumers appear to feel differently. The
Strategis Group research indicates some reluctance from consumers to purchase
the digital set-top box. A majority of the respondents indicated that they
would probably not or definitely not purchase a digital set-top box at pricing
levels of $150 to $250.
In Marketplace for Digital Set-Top Boxes, The Strategis Group analyzes the
analog to digital transition. The publication profiles the potential digital
cable subscribers and projects digital cable subscribers to 2005.
The Strategis Group, Inc. -- with offices in Washington D.C., London, and
Singapore -- publishes in-depth market research reports and provides
customized consulting services to the cable TV, satellite, and wireless
communications industries. The Strategis Group's market studies, valuations,
and strategic planning projects provide crucial information to communications
industry leaders throughout the world. Marketplace for Digital Set-Top Boxes
is available for $1,400.00. Please contact Carol Mann at 202-530-7500
(phone), 202-530-7550 (fax), or cmann@strategisgroup.com for more information.
You may also visit strategisgroup.com for additional information.
SOURCE Strategis Group, Inc.
Web Site: strategisgroup.com |
