Audio Video News

If you subscribe to a cable system or direct broadcast satellite service, you probably need a set-top box (STB) hooked up to your television. Where would you prefer to get your STB? According to a recent study, most TV viewers still prefer to buy retail.

Given a choice, 55% of cable and satellite subscribers would prefer to purchase new digital set-top boxes from retail stores, while the remainder would rather lease STBs from their service providers (35%) or buy them online (10%). These statistics come from a new study entitled "Interactive TV and Home Control Set-Top Boxes: A Segmentation Analysis of Consumer Demand, Price Sensitivity and Buying Intent," published by TechTrends, Inc. in November.

The TechTrends study reveals that more than 70% of DBS subscribers prefer to purchase new STBs, compared to only 52% of premium cable subscribers. Many cable subscribers prefer leasing STBs for a monthly fee, rather than purchasing them from retail stores. Video game players also tend to prefer leasing STBs. The amount of time people spend watching TV or accessing the Internet also affects their buying decisions, according to research analyst Adriana Weinfeld.

"Not only must vendors contend with the challenges of pricing STBs, but they also need to know which consumers would elect to purchase STBs, and which consumers would choose to lease them," Weinfeld said. Changes in FCC regulations stipulate that by 2005, cable operators such as AT&T, Time Warner, Viacom and Comcast will no longer be permitted to lease STBs to subscribers.