State of Cable and Broadband Urban Markets Multicultural Consumers Black, Hispanic Cable and Internet

“BROADBAND ACCESS GAINING GROUND IN URBAN BLACK, HISPANIC HOMES,
STUDY FINDS

Annual Study on Urban, Multicultural Consumers Reveals Trends for TV, Broadband and Portable Devices

June 18, 2007 – Data from the 2007 edition of Horowitz Associates, Inc.’s annual study on urban, multicultural consumers and the market for cable and broadband services reveals that broadband Internet is now reaching a full 50% of homes in urban America, up from 38% in 2006.   Cable modem and DSL service are neck in neck when it comes to market share, with each service cornering almost one-quarter of the market (24%, respectively).  Three percent (3%) of urban consumers now say they have FIOS service from Verizon as their broadband provider.

Broadband Grows Among Black, Hispanic Consumers: While the lion’s share of broadband growth occurred in white, non-Hispanic homes, the study finds that broadband is now gaining much-needed momentum among Black and Hispanic consumers.  In Black households, broadband penetration grew from 28% in 2006 to 39% in this year’s report—an increase of 11 percentage points (compared to a four [4%] percentage point increase the prior year).  In Hispanic homes, the service grew by 9 percentage points from 2006 to 2007, also to 39%.  Growth was highest in bilingual Hispanic households: Over four in ten (43%) now have broadband access.  Comparatively, penetration of the service among Spanish-dominant Latinos remained virtually unchanged, at 19% in Spanish-dominant homes.

Consumption of TV/ Video Content Online, On Portable Devices: On a weekly basis, the study finds, one in five (21%) urban Internet subscribers watches television-type video content online.  Hispanic (28%) and Black (24%) Internet subscribers are the most likely to watch TV content online weekly, while white, non-Hispanics are the least likely to do so.

When it comes to the growing mobile broadband platform, the survey data reveal that 16% of urban cell phone owners subscribe to a service to get Internet access on their cell phone, and 7% subscribe to video service, such as VCAST, for their cell.  The data suggest that Black and Hispanic cell phone owners are also on the leading edge of these types of mobile broadband services.

“That the ‘digital divide’ in terms of broadband services is narrowing is an important development.” notes Adriana Waterston, Vice President of Marketing and Business Development for Horowitz Associates, Inc. “It brings attention to the dynamic relationship between broadband content, broadband access and the consumers who are driving growth.  As more and better content becomes available, more consumers are attracted to broadband, which creates demand for even more, better content.  This is an exciting time to be in the broadband business, especially if you are appealing to multicultural consumers, who are on the leading edge of this new media world.”

About the Study: State of Broadband Urban Markets is a one-of-a-kind, comprehensive study that has been studying the market for cable and broadband services and programming since 1999. The focus is on the urban market, a cosmopolitan, ethnically and racially diverse, and globally connected market where more than one-third of Americans reside.  The study tracks the growth of cable, digital, Internet and broadband services, measures the current market for programming, services and technologies and anticipates trends in the delivery and consumption of new programming and advanced digital services to the urban TV and Internet home among Latino, Black, Asian and White consumers.  For more information, please contact Adriana Waterston, Vice President of Marketing and Business Development at 914-834-5999, or download the study prospectus at www.horowitzassociates.com/sobpro.pdf

About Horowitz Associates, Inc.: Horowitz Associates, Inc. is a market research and consulting company based in Larchmont, New York.  The company conducts custom research and consulting for clients in broadband and new media, including cable television, telecommunications and the Internet.  In addition, Horowitz Associates publishes a variety of annual industry studies including State of Broadband Urban Markets, Making the Connection: Consumer Broadband Lifestyles, Broadband Content and Services, State of Digital and Interactive Television, FOCUS: Latino, FOCUS: African America and State of Cable and Broadband.  More information about Horowitz Associates is available at www.horowitzassociates.com.”

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