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CABLE MUST CONFRONT ECONOMIC CONDITIONS IN 2002

LARCHMONT, NEW YORK -- The cable industry will be subjected to a confusing array of economic conditions in 2002 tha...


December 3, 2001  


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LARCHMONT, NEW YORK — The cable industry will be subjected to a confusing array of economic conditions in 2002 that could have a significant bearing on the “traditional” cable business and the rollout of new digital broadband services.

Market research firm Horowitz Associates, Inc., which has authored a new report called “The State of the Media Economy 2002”, says the economy is currently marked by a split between positive and negative forces. On the downside, the economy — and the cabling industry — is subjected to such factors as: low consumer confidence; the worst advertising slump since the Great Depression; fallout from the dot-com and telecom downturn; a rise in unemployment ;and terrorism at home.

However, on the upside, the economy and cabling industry are being bolstered by such positive developments as: a general rebound in financial markets; low interest rates; better and cheaper digital technology; cable networks’ increasing audience share; and continuous growth of digital and broadband services.

The company says the economy could have the most effect on the introduction of new cable services, including digital cable packages, video-on-demand, interactive TV and cable modems. In certain markets, economic circumstances are putting pressure on cable operators to respond new plans that will attract consumers. Simultaneously, a downturn in airline travel and predictions that consumers are spending more time at home, are providing opportunities for cable to fulfil consumer demand for in-home entertainment.

“Traditionally, cable has thrived in good and bad economies, but the industry has never seen such a mixture of forces affecting our economy and society,” says Howard Horowitz, president of Horowitz Associates. “This new research report will provide clarity in these confusing times.”

The report will be released in January, 2002 as a special supplement for Horowitz clients and for purchase on a stand-alone basis. For more information, visit www.horowitzassociates.com.


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