To: BillyG who wrote (39216 ) 3/10/1999 5:19:00 PM From: John Rieman Respond to of 50808
Digital TV survey shows strong demand for Digital services...........skyreport.com COMPETITIVE WATCH: Study Traces Digital Possibilities Research from "Digital TV V: A Survey Of Consumers in Digital Cable Markets" revealed that there is a strong market potential for digital services, whether it's delivered by DTH or cable, among 36 percent of all cable subscribers. Research states that 15 percent of current cable customers are likely to pay $10 more every month for digital cable service. An additional 10 percent said they would prefer to get a small satellite dish. "Where cable now offers digital, it not only competes for the digital customer, but expands the market from just the high-end premium customer to a more broad base of customers," Howard Horowitz, president of Horowitz Associates, said. "Cable has advantages here, but the satellite providers will also benefit as consumers consider their options for obtaining digital, an array of services they will hear more and more about." According to the survey, more than half of cable subscribers in systems marketing digital services have heard about their MSO's extra offering. When asked what they know about the service, almost a third (32 percent) mention the ability to get more channels. That compares to 4 percent of respondents who equate digital with better picture quality. "The jury is still out on the positioning of digital service as quantity or quality," said Stephen Liebmann, President of S. Liebmann & Associates. "My advice to cable operators, however, is that digital cable will have to compete with dish providers on quality as well as quantity if it wants to realize its potential to expand the market." The research is available from both firms. Those interested can call S. Liebmann & Associates at 212-717-5213 or Horowitz Associates at 914-834-5999.