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Cable Subscribers Ready to Switch to TelCo's (and Vice-Verse) According to New National Consumer Survey from Cable World Magazine.


DENVER--(BUSINESS WIRE)--April 30, 1996--Millions of Americans are ready to dump their current telecommunications providers as cable and telephone companies gear up to get into each other's businesses.

And the key to how many customers bolt will be price. Those were two of the major conclusions of a nationwide survey of consumers conducted for Cable World Magazine by Talmey-Drake Research Inc., a public opinion and market research firm based in Boulder, CO.

The survey comes in the wake of passage earlier this year of landmark legislation that will allow cable companies to offer telephone service and telephone companies to offer video services.

The survey of 963 consumers nationwide found that a whopping 41 percent of cable subscribers would ditch ditch (ditching),
n the undesirable loss of tooth substance in the region of a restoration margin (usually gingival).
 their cable company to get the same set of video services from a telephone company. The number rose to 56 percent if the phone company is able to offer cable service at $2 per month less.

A large number of phone company customers are also ready to switch to telephone service from their cable company. Nineteen percent of those in the survey said they would take telephone service from their cable operator, while 36 percent said they would make such a change if it would same them $2 a month.

"On the way is the biggest marketing war in history," said Cable World Editorial Director Tom Southwick. "This will make the long-distance marketing battles look like a Quaker meeting Quaker Meeting can refer to:
  • Monthly meeting, the basic organisational unit in the Religious Society of Friends (Quakers)
  • Preparative meeting (or Preparatory meeting), a common basic local worship group in the Religious Society of Friends
." The stakes are enormous. Telephone companies currently take in about $100 billion a year in revenue. The annual revenue for the cable industry is around $30 billion.

If customers were to switch providers at the rates indicated in the survey, it would mean a loss of some $36 billion a year for the phone companies and $16 billion a year for the cable operators, Southwick said.

But with price such a key element in the war, the ultimate winner will likely be the American consumer who will enjoy choice in both cable and telephone service for the first time in history.

Cable World is a publication of Cowles Business Media (CBM CBM Commodore Business Machines
CBM Coalbed Methane
CBM Christoffel Blindenmission
CBM Condition Based Maintenance
CBM Confidence-Building Measures
CBM Curriculum Based Measurement (education)
CBM Cubic Meter
), which publishes print and internet-based magazines and newsletters on the media and marketing industries -- including Inside Media, Folio (1) Text management software for the professional reference publishing market from Fast Search & Transfer, Oslo, Norway and Boston, MA (www.fastsearch.com). Known as FAST Folio since its acquisition in 2004 from NextPage, Inc. , Pre, Direct, Catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C.  Age, Cable World, Directory World and Digital Creativity.

CBM's divisions include the Media Central website (www.mediacentral.com) and SIMBA information, Inc., which produces newsletters, on-line services, research reports, directories and conferences on the media and information business. Cowles Event Management operates eighteen conferences and trade events, primarily for the media and marketing industries.

CBM is owned by Cowles Media Company, a newspaper, magazine, and information-services company headquartered in Minneapolis. Its other operating units operating unit

A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon
 include the Star Tribune For the Wyoming newspaper, see .

The Star Tribune (also Star trib or Strib, as it is often referred to) is the largest newspaper in the U.S.
 in Minneapolis-St. Paul; and Cowles Enthusiast A person who enjoys using computers and electronic equipment. Enthusiasts like technology and are willing to learn more of the ins and outs of a product than the average consumer, who just wants to use it. An enthusiast is more like a "prosumer." See consumer and prosumer.  Media, publishers of special interest consumer magazines, books and related products.

CONTACT: Peter Himler

(212) 614-4082

or

Tom Southwick

(303) 837-0900

or

Bob Drake Bob Drake can refer to:
  • Bob Drake (musician), the musician and recording engineer.
  • Bob Drake (Formula One), the Formula One driver.
See also
  • Robert Drake
 

(303) 443-5300
COPYRIGHT 1996 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Apr 30, 1996
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