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STUDY SHOWS SATELLITE TV INCREASING URBAN PENETRATION

Alexandria, VA, August 14, 2000 - The Satellite Broadcasting and Communications Association (SBCA) and The Yankee Group today released additional highlights from the 3rd Annual 2000 Direct Broadcast Satellite (DBS) Study. Results show that DBS is becoming increasingly mainstream with penetration growing in both suburban and urban markets over last year.

Satellite TV Penetration into urban Areas Doubles over Last Year The 2000 DBS Study shows that of the 39.3 million urban television households, over 2.8 million currently subscribe to DBS. That represents 7% penetration, up from 4% last year. Of the 30.2 million suburban television households, 3.9 million currently subscribe to DBS. That represents a 13% penetration rate, up from 9% last year.

"These figures validate what many in the industry already expected, and that is DBS is no longer a rural-only service, it is truly becoming mainstream," said SBCA Senior Vice President Pat Andrews. "With the strong subscriber acquisition numbers released by both DBS platform providers this year, we expect that overall penetration rates will continue to climb."

DBS Viewers Cite More Channels, More Movies than Cable The study shows that when asked their reasoning for subscribing to DBS, the top five reasons given by new DBS subscribers in order were: more channels 79%; greater movie selection 69%; clearer picture and sound 66%; dissatisfied with cable 46%; and cable too expensive 44%. Twenty-nine percent (29%) indicated their reason for subscribing to DBS was because they had no access to cable.

Only 18% of DBS Subscribers Keep Some Form of Cable TV Service The study also shows that of those consumers with access to cable, but have chosen another form of TV entertainment, 39% dropped their cable service because they were switching to DBS. (Other reasons included having never subscribed to cable even though it was available, and dropping cable before DBS was available.) Eighteen percent (18%) of respondents indicated they subscribe to both DBS and cable. In addition, the study shows that interest for DBS is continuing to grow. Among current cable subscribers, 10% indicated they are very or somewhat likely to get a DBS system in the next 12 months. -more- 2000 DBS Study/ Page 2

"It is encouraging to see that consumer recognition and acceptance of DBS is increasing," added Andrews. "When the current platforms and new providers begin rolling out two-way broadband Internet access via satellite later this year, it too should lead to further consumer interest."

The 2000 DBS Study, which is made possible through the collaborative efforts of approximately 30 satellite industry programmers, platform providers and manufacturers, includes three separate studies: The New DBS Subscriber Study; the Programming Study; and the Multichannel Competitive Markets Study. The New DBS Subscriber Study was a random sample of 1,500 DBS households, 750 from each provider, including 250 new subscribers per provider. The Programming Study was a random sample of 1,000 DBS households, 500 from each provider. The Multichannel Competitive Markets Study was a random telephone sample of 1,000 households throughout the U.S. To order the 2000 DBS Study, contact Eric Chang/SBCA 703-739-8372, or Brian Lynch/SBCA at 703-739-8361.


The Yankee Group is an internationally recognized leader in technology research and strategic consulting, whose broad-reaching analysis encompasses all areas essential to e-business success: the Internet, electronic commerce, communications, wireless/mobile, computing, and enterprise applications. The Yankee Group specializes in assisting companies with their e-business, enterprise networking, and Internet technology and electronic market initiatives while maintaining synergy with their overall business strategies. The Yankee Group continue to distinguish itself by providing personalized one-to-one analysis and planning assistance to its customers.

SkyTRENDS is the market research, data collection and reporting program for the home satellite industry. This program is a venture between Media Business Corp and the SBCA. SkyFORUM was developed to create a higher awareness of the satellite industry among the financial and investment communities, and the media. 

The Satellite Broadcasting and Communications Association of America (SBCA) is the national trade organization representing all segments of the satellite industry. It is committed to expanding the utilization of satellite technology for the broadcast delivery of video, data and voice services. The SBCA is composed of DBS and other satellite service providers, programmers, equipment manufacturers, distributors, retailers, encryption vendors, and national and regional distribution companies.