19-Nov-99

Awareness High On Digital Television But No Consensus On Cost

Consumers have a relatively high awareness of digital television, but disagree as to how much they are willing to pay for it, according to a PC Data Online survey on digital television. The online survey showed that 72 percent of Internet users were aware of digital television, but only 36 percent of these said they were likely to subscribe. Forty-two percent said they were undecided, and 22 percent said they would not likely subscribe. Of those who said they were likely to subscribe, 20 percent said are willing to pay up to $4 per month, another 27 percent said they are willing to pay up to $9, and 28 percent up to $14. Finally, three percent said they were not willing to pay anything above their current television service rates. PC Data Online, a leading Internet research firm specializing in Web commerce measurement and analysis, surveyed 5,328 home-based Internet users last month. The study also revealed that nearly two-thirds of the sample said they were unsure if their local cable television company offered digital television. ""Consumers are interested in digital television, but they're asking a lot of questions,"" said Jeff Moulton, Internet analyst for PC Data Online. ""A good number of potential subscribers have yet to make up their minds, and so providers of digital television are going to have to convince them exactly what improvement digital television delivers and at what cost - before they agree to buy in."" The study also disclosed that cable subscribers are satisfied with their current service. A majority of them (60 percent) said they liked the different types of programming genres, but close to one out of two (46 percent) still complained their monthly cable bill is too high. Moulton said respondents said reasons to switch services included receiving additional channels (61 percent), lower price (59 percent) or improved overall service (48 percent). Study respondents also revealed they were most likely to obtain information about television web sites through traditional television advertisements and promotions (32 percent). The digital television survey was conducted among adults who are 18 years old or older during October 14-18, 1999. A total of 5,328 responded, yielding a margin of error of +/- 1.37 percent. The sample was balanced by age and gender to represent the U.S. Internet population. Headquartered in Reston, Virginia, PC Data was established in 1991 and is a leader in technology intelligence and analysis. The PC Data Online suite of services was introduced in 1999 to track Internet usage. It has recently established a state-of-the-art capability to field Internet-based surveys. Source: PC Data Online Web Site: http://www.pcdata.com

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