Hot cable networks in the digital age

'Operators are doing their own surveys, and they’ve really started to look toward those networks that are geared toward digital cable,' says Klein. 'They look at which networks will drive their digital tiers.'

Hot cable networks
in the digital age

Look to Biography, Nat Geo and Lifetime Movie

By David Everitt

    As cable operators continue to offer digital service to more consumers, we can start to take a more serious look at the next generation of cable programming. With digital technology comes the ability to carry hundreds of channels.
    What new networks will be the first to fill all the extra electronic space? A new study provides some tentative answers.
    Among the channels that seem most likely to succeed on the digital tier are National Geographic, the Biography Channel and Lifetime Movie Network.
    The survey, conducted by Beta Research, also shows that cable operators might have a better idea of which channels to choose than they have had in the past.
    "In past years we’ve found much more of a difference between operators and their subscribers in terms of what networks they’re interested in," says Andy Klein, president of Beta’s cable television division.
    "This year the interests of cable operators and consumers seem to match. Perhaps cable operators are more in touch with what consumers want."
    Beta surveyed a sample of 151 cable operators, asking them which networks they would be interested in carrying by the end of 2002. The researchers broke down some of the information in terms of the size of the operators and also in terms of "emerging networks" (one- to 14-million subscribers) and "mid-sized networks" (15- to 49-million subscribers).
    National Geographic Channel got the most enthusiastic response among emerging networks.
    Eighty-four percent of the operators surveyed were interested in carrying the channel by the end of 2002.
    Biography was close behind at 81 percent, while other top-rated channels included Lifetime Movie Network (71 percent), Fox Movie Channel (63 percent) and WE: Women’s Entertainment (60 percent).
    Some ultra-niche channels also got a good response: DIY: Do-It-Yourself Network (68 percent), History International (59 percent) and The Outdoor Channel (58 percent).
    Oxygen pulled in 58 percent, indicating that digital cable might be the solution to that network’s sometimes troubled development.
    The highest-ranked mid-sized network was Speedvision (72 percent). Just below that were Turner Classic Movies, TV Land, Food Network and the Travel Channel.
    Among large operators with 50,000 or more subscribers, the mid-sized network of choice is The Hallmark Channel.
    On what basis have cable operators focused on these networks? And why are their choices now more in tune with consumers’ choices?
    "Operators are doing their own surveys, and they’ve really started to look toward those networks that are geared toward digital cable," says Klein. "They look at which networks will drive their digital tiers."
    Klein sees some patterns in the digital-spectrum channels that attract operators the most.
    "Three criteria seem to be the most important," he says. "One, some networks are rated high because they have already built some momentum on analog systems, such as some of the mid-sized networks.
    "Two, others have rated high because they are affiliated with a well-known basic-cable network. Lifetime Movie Network would be a good example, or Biography, which is a spinoff of A&E, or National Geographic, part of Fox.
    "And three, some networks rate high because they have a clear brand identity, they’re easy to describe. Examples would be vertically programmed networks like Speedvision."
    The inclusion of these networks on more systems depends, of course, on the continued proliferation of digital cable. According to the Beta study, recent growth indicates an encouraging trend.
    In 1999, 40 percent of cable operators reported that they had a digital tier as part of their service. This year that number increased to 83 percent.
    This does not mean, though, that all the subscribers within 83 percent of the systems are getting digital cable. It only means that the service is offered within those areas.
    Right now, according to Klein, 20 to 25 percent of subscribers receive digital cable where it is being offered. He adds that in the near future "there is the potential to reach 50 percent."

-David Everitt covers television and technology for Media Life, writing from Huntington, N.Y.

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