Study: Internet Enhances PPV Buys

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Contrary to early projections, the Internet will not cut
into future pay-per-view revenues, but it could instead increase PPV usage, according to a
recent study on the convergence of television and the personal computer.

The research, conducted by New Jersey-based Statistical
Research Inc., reports that households with PCs were twice as likely to have purchased a
PPV event over the past 30 days than noncomputer households.

The study -- based on more than 6,000 interviews conducted
by the company between January and April -- also reported that online households posted an
increase in cable and direct-broadcast satellite services, while non-Internet households
showed declines in cable subscriptions.

"What we're seeing is that people are not dropping
their television service and running to the computer, but the computer and the Internet
are simply expanding the in-home universe," SRI senior project director David Tice
said. "People who are online have a higher level of advanced television equipment
within their homes."

The report also showed that viewers with both PCs and TVs
were twice as likely to own two or more VCRs and almost twice as likely to have rented a
videotape within the past month.

More than one-half of PC users reported working with a
computer in a location where it was unlikely to compete with television. Also, nearly
three-quarters of online users cited information research or e-mail as the main benefits
of Internet use, rather than entertainment.

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