Subscribers to Both Cable and Satellite TV Exhibit Most Interest in Interactive TV; Report Identifies Internet and TV Usage As Key Indicator of Consumer Demand for ITV Services

Business Wire, March 7, 2001

Business/Technology Editors

BOSTON--(BUSINESS WIRE)--March 7, 2001

According to a recent study by TechTrends, Inc., consumers who subscribe to both cable and satellite TV services are more likely to subscribe to most interactive TV services than those who receive only DBS or cable TV service. The study, entitled "Cable vs. Satellite Subscribers: An Examination of Interactive TV Demand and TV-Internet Usage," has found that dual cable/satellite subscribers are more interested than other pay TV subscribers in video-on-demand, t-commerce, personalized TV channels and time-shifting services.

(Chart: http://www.techtrends.com/release.html)

This study also found that among consumers who are interested in time-shifting services, such as those offered by TiVo (NASDAQ: TIVO) and Microsoft (NASDAQ: MSFT), dual subscribers would pay an average of $4.20 per month, compared to only $3.20 per month among subscribers to either cable or satellite TV.

In addition, dual subscribers would pay 10% more per month than cable-only subscribers for TV-based Web-browsing and e-mail, and nearly 20% more than satellite-only subscribers for digital photo printing from their TV sets.

The report reveals several key differences in TV and Internet usage that are linked to interactive TV demand:

--29% of dual subscribers watch at least 30 hours of TV per week, compared to less than 20% of cable-only subscribers.

--Nearly 30% of dual subscribers spend more than 20 hours per week online, compared to only 19% of cable-only subscribers and 21% of DBS-only subscribers.

--45% of dual subscribers watch TV while accessing the Internet on their PC, compared to only 39% of subscribers to either cable or satellite TV services.

For more information about this study and TechTrends' other research, visit http://www.techtrends.com/report.html

About the Study

Published in January 2001, "Cable vs. Satellite Subscribers: An Examination of Interactive TV Demand and TV-Internet Usage" analyzes subscribers to cable and/or satellite TV services by their type of broadcast delivery (basic cable, premium cable, DBS, C-band satellite) and their DBS service provider (DIRECTV and DISH Network). The study evaluates subscribers' degree of interest and price sensitivity for popular interactive TV services including; digital photo printing, Internet on TV, t-commerce shopping, time-shifting, personalized TV channels, video games and video-on-demand. In addition, the study also examines subscribers' TV and Internet ownership and usage characteristics across six different variables. This 28-page report, with 42 charts and tables, is available now for $895.

About TechTrends, Inc.

TechTrends, Inc. is a global provider of market intelligence and strategic business reports, focusing on the convergence of the Internet and the consumer electronics industry. The company's interactive television research and consulting activities address critical technology, market and consumer issues for digital set-top boxes, t-commerce, satellite and cable TV, video-on-demand, personal TV, DVRs, interactive gaming and home networking.

For more information, please visit http://www.techtrends.com/report.html or call Todd D. Wiener at 617-621-1552.