Urban Multicultural Consumers Key Broadband Segment.

The 3rd wave of State of Broadband Urban Markets, a study of the urban market for cable programming, telecom, Internet and new media among urban dwellers in the U.S., was just released by Horowitz Associates, Inc. Among the topics covered in the study are television and Internet habits, favorite channels and web sites, viewership of broadcast, cable and premium channels, interest in digital and interactive features, recognition and perceptions of various media brands and the importance of in-language programming.

Enormous Market Potential for Digital Cable: Data from the study confirm that urban consumers have emerged as a key broadband segment, in particular for the delivery of digital content to the TV. Digital cable penetration in urban America is at 21%, mirroring the national penetration rate of 20%. Penetration rates are highest among urban Hispanic consumers that are English-language oriented (33%) and Black urban consumers (28%). Although penetration numbers are lower among Asians and Spanish-dominant Hispanics, those consumers express great interest in digital cable service: one quarter (26%) of Asian cable subscribers and two fifths (19%) of Spanish-dominant Hispanic cable subscribers say they are likely to pay $10.00 more a month to upgrade to digital. Overall market potential for digital cable service among urban cable subscribers is 54%, compared to 48% among cable subscribers nationally.

Importance of Ethnic Programming: Programmers cannot risk taking the multicultural urban market for granted. While market potential for digital TV is high among America’s multicultural consumers, there is a real need for more culturally relevant programming. One of the findings of the study is that America’s Black, Hispanic and Asian consumers want to see more ethnic-oriented programming content on TV:

78% of Blacks consider it important to have channels with programming oriented to African-Americans;

75% of Hispanics consider it important to have Spanish language channels;

51% of Asians consider it important to have channels with programming oriented to Asian-Americans.

“America’s multicultural consumers are fast becoming the general market for broadband services, and the time is now for the entire media business community to understand that fact and act on it,” says Alisse Waterston, Ph.D., President of Surveys Unlimited, the division of Horowitz Associates under whose auspices the study was conducted. Howard Horowitz, President of Horowitz Associates, adds “These new urban market consumers are sending a clear signal to cable operators and content providers that to succeed in the new media marketplace, they must develop services and content for multicultural markets. Ultimately, the interaction of the established media brands with new urban-oriented programming and entertainment concepts will define the new media landscape.”

High-Speed Gaining Ground: Potential for broadband services in urban markets is not limited to Digital TV. The Internet currently reaches 6 out of 10 urban homes, with projected penetration at 73%. Young urban consumers, in particular, are becoming hungry for high-speed Internet services: E-mail, research gathering, and downloading music are the most popular on-line activities of 18-34 year old urbanites, and among these consumers, penetration of high-speed is projected at 48%.

About the Study: These survey findings represent only a small part of State of Broadband Urban Markets III, a study that analyzes the market for cable, Broadband, Internet, telecom and new media products and services among urban consumers in the U.S. The study provides detailed comparisons by ethnicity, age, gender and income as well as valuable tracking data on this emerging and essential market.