Digital cable subscribers are more likely to buy premium services...
Digital cable subscribers are more likely to buy premium services and pay more than satellite subscribers, according to a study by Horowitz Assoc. Digital cable is also more likely to appeal to high-end tech consumers, reversing the early image…
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of digital and satellite deployment, Horowitz said. The average monthly cost of digital cable is about $72 compared to roughly $56 for satellite, according to the “State of Digital and Interactive TV 2004” study. The study showed 28% of consumers use digital cable and 20% use satellite. Close to 2/3 (65%) of digital subscribers pay for premium channels (42% paying for 2 or more channels), the study showed. In contrast, 55% of satellite subscribers pay for premium channels (37% paying for several premiums), according to the study. Of the pay-per-view users ordering at least one movie a month, 39% were digital cable subscribers and 41% were satellite subscribers, the study showed. Among digital subscribers, 38% averaged 3 movies monthly using video-on-demand and movies-on demand. Twenty- two percent of digital subscribers and 8% of satellite subscribers may downgrade or discontinue their services, but 14% of basic cable subscribers will likely upgrade their services, the study showed. According to the study, 8% of satellite subscribers are considering a switch to digital cable.