Minorities Fuel Broadband Growth

LARCHMONT, N.Y. -- Horowitz Associates' latest study,Multiplatform Content and Services: Multicultural Edition, focuses on multiplatform TV consumption among Black, Hispanic, Asian, and White broadband users.

A study fielded by Horowitz suggested that although Black and Hispanic homes under-index for broadband, they are driving new broadband growth. In Horowitz's new study, multicultural consumers with broadband also lead the way in ownership of video-enabled handheld devices: 84% of Asian and 83% of Hispanic and Black broadband users can access video on a handheld, compared to 74% of Whites.

With growing access to alternative platforms and more robust content on them, the study finds multicultural consumers are generally more involved in multiplatform TV than Whites. Almost half (48%) of Asian, 46% of Hispanic, and 35% of both Black and White broadband users watch TV content online; 16% of Asian, 22% of Hispanic, 19% of Black, and 15% of White broadband users watch TV content on a handheld (weekly data).

Despite heavy usage of multiplatform TV, the traditional set still dominates. Seventy percent of Asian, 75% of Hispanic, 74% of Black, and 75% of White broadband users who watch TV on alternative platforms report that most of their viewing still occurs primarily on the TV set. On the other hand, for 29% of Asian, 22% of Hispanic and 24% of Black broadband users, alternative platforms are now used equally or more than traditional TV.

One-quarter of Asian (24%) and White (25%) multichannel subscribers say they are considering/might consider cancelling their TV subscriptions if more of their favorite content were available online. The potential for cord-cutting is lower among Hispanics and Blacks; still 18% of Hispanic, and 13% of Black multichannel subscribers are considering/would consider cutting the cord.

"Our data consistently show that multicultural audiences tend to be on the leading edge for advanced technologies and services," asserts Adriana Waterston, VP of Business Development for Horowitz Associates. "When it comes to alternative TV platforms, multicultural consumers want more choice, not less. Any players in the multicultural space need to deliver what viewers are coming to expect: cross-platform content."