Horowitz: Total Digital Penetration at 38%

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According to Horowitz Associates Inc.'s newly released "Transitioning to the
Digital Home" report, 38% of consumer respondents said they now get digital
cable- or satellite-television service.

According to Horowitz's press release on its tracking of 10 years of "The
State of Cable and Broadband" survey data from 1993-2002, "We are clearly on the
verge of critical mass in the penetration of all things digital" in the
home.

Two-thirds of consumers (64%) said their homes are now about to become
digital. Those in the about-to-go-digital contingent represented 26% of
respondents, Horowitz noted.

The firm's president, Howard Horowitz, said in a prepared statement, "There
is no doubt: The consumer is going digital, and the competition for digital
customers is driving the launch of the most advanced services - PVR [personal
video recorders], VOD [video-on-demand], HDTV."

Looking back to 1994, Horowitz reported that small-dish penetration was a
mere 1% at the time and it is now 17%. Meanwhile, digital cable has risen from
3% in 1998 to 21% now, the firm added.

Horowitz said 21% of cable operators currently offer VOD from content
packagers, 11% offer server-based VOD and 6% already offer PVR technology.

"We've come a long way from the A/B switches in 1993," he
added.

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