Study Predicts Growth for Broadband and Digital Services Among African-Americans
Tuesday, 05 September 2006
Horowitz Associates, Inc.'s Surveys Unlimited division has released results from the first edition of FOCUS: African-America, which takes an in-depth look at the market for cable and broadband services among urban Black/African-American consumers. The study, modeled after the popular FOCUS: Latino study series, presents data from a survey of 500 African-American heads of household across US urban markets.
Black/African-Americans: Some of Cable's Best Customers: Spending for television services in Black/African-American households continues to be higher than in other urban homes. The study finds that African-American cable subscribers pay, on average, $58.17 for their cable service, compared to $54.00 among total urban cable subscribers. African-Americans with digital cable report an average monthly cost for their cable service at $66.74, compared with an average of $64.36 among total urban digital cable subscribers, and among those with satellite, monthly spending is reported at $63.70 a month, compared with $58.73 among total urban satellite subscribers...
Internet Services Poised for Growth Among African-Americans Internet services overall and broadband services in particular, are areas of potential strong growth among African-Americans. Based on future intentions, Internet penetration among urban African-Americans could grow from 45 percent to 62 percent and high speed Internet penetration will grow from the current 28 percent to 46 percent based on likely purchase questions in the survey. Importantly, DSL has an edge over cable modem service for new installs when it comes to the type of service urban Black/African-Americans are considering.
Potential for High Churn as Black/African-Americans Consider Switching to Satellite While Black/African-Americans have traditionally been some of cable’s best customers, survey data indicate that cable penetration may decrease, while satellite penetration increases in African-American urban homes. Based on data from consumers who are considering or have already decided to get or switch their multichannel service, penetration of satellite dish services among urban African-Americans could rise from 16 percent to 22 percent while penetration of digital cable could go from 30 percent to 23 percent.
Horowitz Associates Inc. Market Research & Consulting
Horowitz Associates Market Research & Consulting Adriana Waterston, Vice President of Marketing and Business Development at Horowitz Associates, notes “The industry cannot afford to ignore the African-American market, particularly when it comes to retention and now, win-back from satellite and DSL competitors. We know that historically, African-Americans are big spenders when it comes to television and entertainment services, and have been loyal to cable. This study shows indications that the competitive market for African-American subscribers is heating up, as it already has for Latino subscribers.”