Horowitz Plans New Study of Digital Cable

Staff -- Multichannel News, 3/19/2001

LARCHMONT, N.Y. -Horowitz Associates Inc. and S. Liebmann & Associates Inc. are expected to announce plans for their joint Digital TV VII consumer survey this week at the Cable Television Association for Marketing's Digital and Pay Per View Conference in New Orleans.

The research companies plan to poll 800 consumers in 49 markets where digital cable is currently offered. The study will test demand for digital cable and direct-broadcast satellite television services.

Consumers' "continued willingness to spend money" for additional channels and interactive capabilities is "the crucial question this survey will answer," Horowitz president Howard Horowitz said in a press release.

The study is expected to measure how an economic downturn might affect the growth of digital cable or DBS, and will also look at the factors that drive consumer churn.

"Our study will indicate which digital-cable features are the primary driver benefits for cable subs in the spring of 2001, and what do [operators'] subs feel are the competitive advantages of digital cable versus digital satellite TV," S. Liebmann president Steve Liebmann said in the release.

The researchers will also ask consumers if they are aware of some of the new interactive services offered by DBS providers, such as personal video recording.

Also last week, a new study concluded that of the 40 percent of consumers who recall hearing the word "broadband," 45 percent can't define the term.

But more than half of consumers polled could name some of the benefits of high-speed Internet access, according to the CTAM-released study.

For example, 57 percent of those surveyed named choice of Internet-service providers; 51 percent noted the constant or "always-on" connection; 51 percent pointed to Internet access speeds up to 25 times faster than a 56K modem' and 50 percent said they could be on the phone and online at the same time.