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Consumers Love Electronics

Max Lenderman

Nearly half of the respondents in a new CTAM study said they will buy entertainment equipment or services in the next 12 months. The problem is, more than half don't know what they want to buy.

For those who do have a better sense of what they want, a PC tops the list of intended purchases at 17%, followed by a VCR (12%) and an online service (11%).

According to CTAM, 10% of non-cable subscribers are likely to subscribe to cable. Within the next 12 months, that same group plans to purchase a PC (33%), an online service (34%), a CD player (26%), a VCR (25%) and/or a large screen TV (21%). CTAM recommends cable operators partner with retailers to reach non-subs at the point of purchase.

About 23% of consumers show some interest in having their cable company set up a home entertainment system. PPV and premium subs show more interest, allowing MSO's the opportunity to partner with retailers for special incentives and upgrades.

"Significantly," the report says, "more PPV and premium cable subscribers are planning to make purchases of home entertainment equipment and services."

Moreover, 7% of PPV customers are planning to purchase HDTV, 6% want digital cable and 10% plan on getting a satellite dish. For premium cable subscribers, 4% said they were going to get HDTV, 6% yearned for digital cable and 9% said a satellite dish will grace their rooftops in the coming year.

The survey results, compiled for CTAM by Bruskin Goldring Research, show "a great opportunity for cable companies to partner with retailers to offer special incentives" for special purchases on home entertainment systems and premium cable subscriptions.

Overall, 95% of U.S. homes have a regular TV, 73% have a CD player and 61% of the households watch analog cable television. Nearly half of all homes have PCs (48%), and about 35% of American homes have "some type of surround sound or home theater with additional speakers connected to their music and TV system." One in five households has a large screen TV, and penetration rates for DVD players and digital cable TV are at a not insignificant 8%.

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