Every few months, Beta Research, a market research company in Syosset, N.Y., releases a study about consumers’ awareness of and interest in various cable networks. Later that day, the cable networks themselves invariably send out releases trumpeting their desirability among former digital basic cable subscribers or some other obscure segment of the TV viewing population. One might think, based on these studies, that consumers are mighty eager to get low-profile specialty networks on their basic cable, but the reality is quite different. Consumers who express an interest in these channels don’t necessarily want to subscribe to them. What’s more, the new and emerging networks that they are interested in tend to come from the big names in cable: ESPN, Discovery, Lifetime and the like. In the company’s most recent study, released two weeks ago, cable subscribers ranked three Discovery networks, Science Channel, Discovery Home and History International, in the top five, along with one, No. 1 Fox Movie Channel, owned by News Corp. The same pattern was evident with the top seven mid-sized networks, five of which were associated with big cable names. Andy Klein, president of the cable TV division of Beta Research, talks with Media Life about why interest doesn’t equal subscriptions, what makes a network desirable to viewers, and the rising interest in video on demand.
How likely are people who say they are interested in getting a channel to actually go out there and get it?
Obviously, for many satellite and cable companies, non-premium networks are part of a package and you often can't buy them individually like apples. In our studies measuring perceived value, we have found that very few people would be willing to pay separately for individual basic networks.
As part of a basic package, a majority of a network’s viewers rate the network important to their enjoyment of cable but are not willing to pay a separate fee for the network.
What makes a network desirable to people? That is, have they usually heard of these networks, or do they just hear a branded name (such as Lifetime Movie Network) and get excited?
Two things: Networks with strong brand identities that tend to have a clear programming focus. And new digital networks developed from networks with a strong branded name such as Lifetime, Discovery, ESPN, MTV, Nick, National Geographic, etc., also score high. Many of these strong brands also have a clear identity.
Why do emerging/digital networks with clear programming focus and identity generate the most consumer interest?
Because the concept of the network is easy to understand. Many TV viewers like the idea of being able to watch a specific program genre/type (e.g. movies, sports, children's programming, etc.) whenever they wish.
Have you seen a rise in interest in video on demand networks over the past few years? Do viewers really understand what these networks do?
The percent with interest in video on demand in general was 38 percent in 2006, a similar 39 percent in 2005, a significantly lower 30 percent in 2004. About 67 percent of cable subs are aware of video-on-demand, but a measurable 33 percent are not aware. So a sizeable segment of viewers may not fully understand the benefits of [such] networks.
How do you categorize networks -- such as emerging or mid-sized, etc.?
Major networks are those with over 70 million subs; mid-sized nets have 41 to 70 million subs, emerging nets have less than 40 million subs.
Is there a big difference between awareness of networks between cable and satellite subscribers?
Awareness of major and mid-sized networks was high among both groups. Awareness of emerging/digital networks was higher among satellite subscribers.
Speaking of which, is it hard to find people who don't have cable? How about former cable subscribers?
It is very hard to find people who don't have cable or satellite. We use the firm Survey Sampling to provide sample lists.
Which networks would you say really stood out in this latest survey?
Among cable subscribers age 18 and over, emerging networks ranking the highest in viewing interest were Fox Movie Channel, Hallmark Movie Channel, Science Channel, Discovery Home, History International, Biography Channel, Weatherscan, NFL Network, IFC and DIY. National Geographic Channel, Lifetime Movie Network, Discovery Health Channel and Superstation WGN were the top-ranked mid-sized networks.
However, other networks ranked high among specific audience segments. For example, NFL Network, CSTV and ESPN U ranked high among men, specific MTV and Nickelodeon digital nets ranked high among teens, etc.
How much difference in response do you generally see in these surveys from year to year? Do a lot of networks move around?
Rankings of most networks are fairly stable.
How is this study used by cable operators?
The Beta Cable Subscriber Interest Study can be used as one factor in many in the decisions to add or retain specific networks in digital cable packages. The Beta Non-Subscriber to Cable Study can be used to determine which cable and digital cable network concepts are most appealing to specific non-subscriber segments, including persons who have never subscribed to cable, former cable subs and DBS subs.