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To: let who wrote (27098)	12/26/1997 9:43:00 AM
From: Stoctrash	Respond to of 50808

DBS news: DBS Must Attract a New Wave of Consumers, Yankee Group Study Finds PR Newswire - December 23, 1997 07:25 %TLS V%PRN P%PRN -------------------------------------------------------------------------------- Jump to first matched term BOSTON, Dec. 23 /PRNewswire/ -- A new survey from the Yankee Group indicates that in order to maintain significant subscriber growth, the Direct Broadcast Satellite (DBS) industry must heighten its efforts to attract customers who already subscribe to cable TV. The study suggests that as the number of DBS subscribers rises to more than six million, most of those consumers who were initially interested in the product have already bought it. The survey of more than 1,900 U.S. households found that DBS has been most successful in areas where cable is unavailable. More than half of the households currently using DBS said they subscribe to satellite TV because they don't have access to cable. "We expect DBS to continue to grow in these limited markets," said Bruce Leichtman, director of the Yankee Group's Media and Entertainment Strategies Group. "But the real challenge for DBS will be drawing customers from the much larger base of current cable subscribers." To achieve this, the industry needs to increase the level of overall consumer interest in the product. Among consumers who were not likely to obtain a satellite dish in the next 12 months, nearly 50 percent said they have no need for one, and an additional 20 percent said that it is too expensive. Surprisingly, relatively few of these consumers cited the fact that DBS does not carry local TV stations (see table). Why Won't You Buy a Satellite TV Dish in the Next 12 Months? I Have No Need For One 49.4% It's Too Expensive 20.0% It Doesn't Carry Local TV Stations 7.5% It Costs Extra to Use on More Than One TV Set 3.6% I Don't Like the Looks of it on My Property 2.6% "While much of the focus has been on DBS's inability to deliver local channels, the core reason consumers don't buy DBS is because they have not found a need for the product," notes Leichtman. "Rather than battling amongst themselves for market share, the DBS players need to clearly articulate their strengths in areas of programming and reception in order to give the next group of prospects a reason to buy their products." The Yankee Group Background Information The Yankee Group was rated as the top research firm in overall credibility in a recent Information Week survey. The company's Media and Entertainment Strategies practice examines the tradeoffs that businesses and consumers must make as traditional forms of media are joined by new products, services, and applications. SOURCE The Yankee Group /CONTACT: Bruce Leichtman of The Yankee Group, 617-956-5000, ext. 322/ /Web site: yankeegroup.com