08.31.2004 02:56 PM
JupiterResearch Predicts Rise In Digital Cable
New York, NY--JupiterResearch is predicting that overall U.S. cable television subscriber growth will remain flat through 2009, increasing from 73 million households in 2004 to 75 million households in 2009. However, digital cable penetration will grow at a compound annual growth rate of 11%, from 26 million households in 2004 to 43 million households in 2009. To boost migration from analog television, cable operators and multiple system operators (MSOs) will need to focus on those services unique to digital television such as Digital Video Recorders (DVRs) and Electronic Program Guides (EPGs).
According to the report issued by JupiterResearch, MSOs can accelerate digital cable growth by incorporating consumer attitudes toward DVRs into their marketing campaigns. "The good news for operators is that 70% of consumers are interested in DVR features, and over 75% of those interested in DVRs want to record movies," said Todd Chanko, Analyst with JupiterResearch. "MSOs should highlight their movie-centric network lineups alongside their DVR promotions to stimulate DVR uptake."
The JupiterResearch survey conducted for this forecast also found that EPGs were of interest to only 29% of those interested in using DVR service, compared to 37% of current DVR owners, who found EPGs to be an important feature. "This demonstrates that some of the unique aspects of DTV are not adequately communicated to consumers. EPGs are an effective navigation tool that should be leveraged by MSOs in wooing potential DTV converts," said Chanko.