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CABLE OPERATORS SAY DEMAND IS GROWING

LARCHMONT, NY -- A majority of cable system operators feel that the demand for faster and improved delivery of voic...


February 15, 2002  


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LARCHMONT, NY — A majority of cable system operators feel that the demand for faster and improved delivery of voice, video and data through cable modems and digital cable service has grown since the events of September 11th.

Eighty-two per cent of respondents to the “State of Cable and Broadband 2002” study by Horowitz Associates, Inc. say they have, or are planning to, add new cable networks as one of several possible actions to deal with increasing competition.

The Larchmont, New York-based market research firm says the findings of its ninth annual study show that in spite of current events, market potential for cable, broadband and Internet remains high.

System operators say their projections for digital and cable modem installations, in addition to basic installations and premium channel gain, have remained the same or increased since September 11th. These results are consistent with attitudes of consumers, who indicate that since September 11th, watching television and being on-line are more important than ever before.

The biggest reported change in operator outlook is in their estimates of demand for cable modems: 44 per cent of operators surveyed have increased their projections for cable modem installations, while 46 per cent say their projections remain the same.

Projections for digital installations are also on the rise. Thirty-one per cent of operators currently offering or testing digital service say they have increased their projections, and 46 per cent say their projections remain the same.

“The optimistic projections of operators are consistent with attitudes expressed by consumers,” says Howard Horowitz, president of Horowitz Associates. He says that the consumer responses in the study show “strong interest in the range of broadband services, but the service and content providers need to develop the brand affiliations necessary to successfully market, position, program and sell the new services.”


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