ABSTRACT
Digital cable is a technological innovation featuring interactivity, which is still in its infancy. The chapter identifies a profile of early digital cable subscribers based on a telephone survey. Since late 1990s, cable companies have offered an upgraded distribution system: digital cable. Digital compression technology expands the channel capacity of analog cable. This increased capacity allows cable operators to offer present and potential subscribers a digital service tier with enhanced attributes and additional program networks not currently available on the existing analog basic service tier. Because of its innovative features, the penetration rate of digital cable in United States has been increasing since the late 1996. Digital cable is recognized as an effective means for cable companies to generate increased revenue and to keep premium customers from migrating to Direct-Broadcast Satellite. With regard to innovative attitudes, digital cable subscribers were significantly more likely to evaluate both themselves and their cable company as technologically progressive, relative to the group of nonsubscribers.
