Introduction

Alexander and Associates has conducted this study on the pattern of satellite consumption for the past three years.  In general, the Satellite Study takes an in-depth look at the media consumption patterns of small dish owners.  The media consumption patterns covered in this analysis include video rental and purchase behavior, PPV transactions and premium cable subscription changes.  In addition, the study covers consumers’ attitudes towards home video, PPV and satellite experiences as well as how these attitudes impact their media behavior.

I.  Timeline

1997: Motivated by concern that early adopters of satellite systems were completely abandoning 30 years of in-home media behavior, including home video rental and purchase activity.

1998: The second study highlighted changing reasons for DTH purchase and the successful efforts by Blockbuster to retain customers.

1999: This study specifically addressed the differences and similarities between the newest small dish owners and the earlier adopters of satellite technology.  Furthermore, by analyzing these two distinct groups we have gained insight into the strengths and weaknesses of the pre-recorded video channel and the impact of release windows on the pre-corded video market.

2001: In April of 2001, Alexander & Associates launched its first Digital Cable Household Study in conjunction with our fourth DTH Satellite Household Study. We hope that these studies will combine into a comprehensive analysis of the “pipelines” into US homes.  This information will yield an understanding of how upgrading to a broader pipe affects the media behavior in various market segments.  The study also concentrates on “video-on-demand”, as the capability and availability of this service becomes an increasing heavy player.

II. Project Design

Satellite
Although the media climate has changed in past years, we follow the same study methodology to ensure strict comparability of the findings to previous years.  The internal validity and consistency of our research work is matched only by the comprehensive scope of our efforts: in 1999, over 30,000 screening calls were made in order to yield 1,000 completed interviews. Alexander & Associates also incorporates a weighting system to the data, assigned by a third party.  These weights are based on respondent information and separate estimates of the DTH universe. Such data manipulation is an integral part of the study, as it further ensures the projectability of the sample results to the overall satellite population.  Additional points of coverage this year include home computing and Internet usage.

The satellite study will profile the later adopters and take a look at the potential growth over the next five years.  With the majority of cable companies now offering digital cable, what will emerge as the leading technology?  Will satellite satisfy video-on-demand faster than digital cable?  These questions prompted us to include the Digital Cable Study outlined below.

Advanced Media Community Study/Digital Cable Survey
Alexander & Associates has designed a methodology based on "Advanced Media Communities."  This methodology will take five communities in which digital cable is established and has been in place for at least 12 months:  Austin, Sacramento, Needham (Massachusetts), Atlanta and Denver are the markets we have selected so far.  The selection of these communities takes into account the demographic distribution of each area, so that all segments of the United States household population will be represented and forecast will be more accurate.

We will sample the whole community – not just cable or digital cable homes, but the whole community.  Some will be satellite households, some will be DVD renters, some will be broadband Internet users, and some will be digital cable subscribers.

The questionnaire that we will use will be based on our successful, well-established and well-regarded DTH Satellite Household Media Behavior Study.  This questionnaire focuses on the full range of home entertainment behavior, including cable television watching, premium channel subscriptions, pay-per-view by cable and digital satellite channels, multiple subscription (cable and satellite) patterns, and DVD/VHS rental and purchase activity.  Added to the mix for the digital cable study will be questions on PC and video game connectivity and use as a media channel for pre-recorded home entertainment.

For more information, please email us at aainfo@alexassoc.com or phone 212.684.2333.