BOSTON, Sept. 19 /PRNewswire/ -- Spurred by the addition of local channels
and new services like high-speed Internet access and interactive TV, the
Direct Broadcast Satellite (DBS) audience in the United States will grow to 25
million subscribers over the next five years, according to a new Report from
The Yankee Group.
( Photo: http://www.newscom.com/cgi-bin/prnh/20000609/YANKEELOGO )
According to the Report, titled "Direct Broadcast Satellite: Growth in New
Directions," historically DBS has been strongest in rural areas without access
to cable television and among early adopters seeking more movies, sports, and
improved picture and sound quality. But with recent legislation permitting
satellite delivery of local stations, DBS now competes more effectively with
cable in urban and suburban markets.
In addition, new services such as high-speed Internet access, satellite
receivers equipped with digital video recorders (DVRs), and Interactive TV
will have a significant impact on the industry's future growth.
"The DBS market is evolving as it adds new services," notes Michael
Goodman, senior analyst for The Yankee Group's Media & Entertainment
Strategies Planning Service. "As DBS providers roll out local station
packages in more markets and begin to offer high-speed Internet access and
interactive TV applications, DBS will expand its appeal to a wider range of
Year DBS Subscribers (millions)
The Report draws upon data gathered in surveys conducted with DBS and
cable subscribers by The Yankee Group in conjunction with the Satellite
Broadcasting & Communications Association (SBCA.) Some key findings from
these surveys include:
-- Access to Local Stations Is Affecting Cable: Among new DBS subscribers
-- households that acquired service during the first three months of
this year -- 70% say they have access to cable television, and 17% of
those with access subscribe to cable. But among those new DBS
subscribers who receive a local station package from their satellite
provider, only 8% still maintain a cable subscription.
-- Hardware Prices Are Down, but Subscription Fees Remain Steady:
According to new subscribers, the median cost of a DBS system
(including installation) has declined 100% over the last two years,
falling from $300 in 1998 to $150 this year. But the median
subscription fee paid for DBS service has held steady at $40 per month
over the same period.
-- DBS Subscribers Are Interested in Satellite Receivers with DVR
Capabilities. Nearly a quarter (23%) of all DBS subscribers said that
they were very or somewhat interested in owning a satellite receiver
with DVR capabilities. DVRs, which give viewers greater control over
what they watch and when they watch, were especially appealing to
DBS's best customers, multiple premium subscribers. Among DBS
households that subscribe to multiple premium services, 32% said that
they are very or somewhat interested in owning a satellite receiver
with DVR capabilities.
-- DBS Customer Satisfaction Remains High: 79% of DBS subscribers would
recommend their system to a friend, and 38% new DBS subscribers
consider friends and family to be the most influential source of
information when deciding to purchase a DBS system.
The Report also identifies several other factors that will sustain
subscriber growth in the years to come. Among them:
-- DBS is Negating a Key Advantage That Cable Operators Have Held for
Years: access to local stations. This in turn is causing cable
penetration among DBS households to decline in markets where DBS
providers offer local station packages.
-- DBS Will Enjoy New Opportunities in Suburban and Urban Markets. Local-
to-local service allows DBS providers to even the playing field in
urban and suburban markets in terms of local channel availability.
This is particularly important as cable operators aggressively
introduce digital cable into these markets to counter DBS.
-- DBS Will Quickly Emerge as a Major Player in High Speed Internet
Access. Though behind both cable modem service and DSL, high-speed
Internet access delivered via DBS will be launched on a nationwide
basis, allowing DBS providers to match HSI offers in some markets and
beat the competition in others. In addition, data services will bring
new incremental revenue streams to satellite providers in a maturing
About Media & Entertainment Strategies
The Yankee Group is an internationally recognized leader in technology
research and strategic consulting. The company's Media & Entertainment
Strategies practice examines the tradeoffs that businesses and consumers must
make as traditional forms of media are joined by new products, services, and
applications. The Yankee Group continues to distinguish itself by providing
personalized one-to-one analysis and planning assistance to its customers.
About The Yankee Group
The Yankee Group (www.yankeegroup.com) is an internationally recognized
leader in technology research and strategic consulting, whose broad-reaching
analysis encompasses all areas essential to e-business success: the Internet,
electronic commerce, communications, wireless/mobile, computing, and
enterprise applications. The Yankee Group specializes in assisting companies
with their e-business, enterprise networking, and Internet technology and
electronic market initiatives while maintaining synergy with their overall
business strategies. Headquartered in Boston, the company's research and
sales staff is located throughout North America, Europe, Latin America, and
Asia-Pacific. With over 30 different planning services, complete consulting
capabilities, and a full calendar of technology-focused conferences and
seminars held around the globe, The Yankee Group is truly a "one-stop shop"
for strategic analysis and advice on the information technology industry as a
whole. The Yankee Group continues to distinguish itself by providing
comprehensive research, electronic content delivery, and personalized one-to-
one analysis and planning assistance to its customers. For additional
information regarding The Yankee Group and the services it offers, please
visit the company's web site at www.yankeegroup.com.
SOURCE Yankee Group