Urban Homes TV Preferences.

Surveys Unlimited, the social, cultural and ethnic research division of Horowitz Associates, Inc. recently released data from State of Broadband Urban Markets IV, a study series on cable programming, Internet, broadband and new media among urban dwellers in the U.S. Findings from this important annual tracking study continue to assert that urban, multicultural consumers are a key broadband segment for networks and cable operators vying for new subscribers in a highly competitive marketplace.

The telephone survey of 2,000 consumers and approximately 50 cable operators in this country’s urban markets was conducted in April/May of 2003. Findings indicate that cable TV penetration in urban markets is currently at 68%, with digital cable penetration rising from 34% in 2002 to 38% among cable subscribers interviewed for the study.

Satellite penetration is currently at 15%, but dishes could soon be in one out of four urban homes, as 8% of urban consumers surveyed are currently considering getting a dish and 4% have already decided to purchase one.

Market Potential for Digital Cable Poised to Reach Half of Urban Cable Households: Consumers were surveyed about their likelihood to subscribe to digital cable within the next six months. Data indicate that penetration of digital cable among cable subscribers in urban markets could rise to 49% of all cable households if those consumers likely or very likely to subscribe actually do. Penetration could increase from 46% to 56% of Black cable households, from 45% to 56% among Hispanic cable subscribers, and from 35% to 49% among Asian cable subscribers. Conversely, among white, non-Hispanic cable subscribers surveyed, potential penetration promises to rise 7 percentage points, from 38% to 45%.

“What clients of State of Broadband Urban Markets IV have known since 1999 is now almost common knowledge, that providing services and content for America’s multicultural consumers is essential to achieve success in the ever-increasing competitive environment for TV and broadband services.” notes Howard Horowitz, President of Horowitz Associates. “This study provides a clear roadmap for networks and cable operators striving to fully understand the complexities of the multicultural, urban market. It is not enough to say ‘if we build it, they will come’. Digital tiers need to be tailored to meet the specific needs of Latino, Black and Asian consumers, while at the same time acknowledging that multicultural consumers as a whole represent a unique and growing segment of America-and an incredible market opportunity.”

Multicultural Consumers Voice Programming Preferences: Understanding the programming needs of America’s multicultural consumers is key to attracting new subscribers in the competitive market for digital television. This study addresses this complex issue in depth, measuring favorite channels, the importance of various programming genres, language preferences for watching TV, and the impact of four new Latino-oriented or Spanish language channels on Hispanics’ likelihood to subscribe to digital. Findings reveal that two-thirds (67%) of African-Americans and over half of Asians (57%) and Latinos (54%) consider it important to have urban-oriented channels with entertainment, news, sports and informational programs targeted to multicultural audiences.

New Basic Features Attract Digital Subs, Premium Features Mean Incremental Revenue: Three out of ten cable/satellite subscribers (including current digital subscribers) say that access to “basic VOD” (32%) and/or movie VOD for $3.95 a movie (30%), “would make them more likely to pay $10 more a month to have digital cable service. Two out of five (20%) urban cable/satellite customers are willing to pay to have a Tivo-like personal recorder built into their set top box, and 17% would pay for a wireless home entertainment network.

About the Study: These survey findings represent a small part of State of Broadband Urban Markets IV. Other topic areas include Internet usage and penetration, the market for Broadband services, media and technology profiles, and a survey of cable operators about plans and attitudes regarding the urban market. The study provides analysis by ethnicity, age, gender and income as well as valuable tracking data on the urban, multicultural market. The published report, and full set of data tabs are currently available for purchase and were released to clients at the end of June.

For more information at http://www.horowitzassociates.com