BOSTON - Despite the fanfare over last week's launch of Digital TV (DTV) broadcasting in the United States, new survey results from the research firm the Yankee Group indicate that most consumers are satisfied with the picture quality they get from today's analog broadcasts.

According to a Yankee Group survey of more than 2,000 U.S. homes, 86 percent of households subscribing to cable TV said they were very or somewhat satisfied with their TV's picture quality and reception. About two-thirds of the roughly 100 million households in the U.S. today receive their TV programming via cable.

Among the eight million homes receiving TV via Direct Broadcast Satellite (DBS), the favorable ratings ran even higher: 96 percent of DBS subscribers expressed satisfaction with their current picture. The only segment of the viewing audience badly in need of a clearer picture is households that use broadcast TV exclusively, where only about a third (36%) said they were satisfied with their present service.

Digital broadcasting promises to offer viewers wider, higher-resolution pictures that are less susceptible to interference and distortion. Based on a schedule established last year by the FCC, 42 local TV stations around the country began their first limited digital broadcasts on November 1.

"These findings suggest that demonstrating Digital TV will be crucial in attracting early adopters," notes James Penhune, an analyst for the Yankee Group's Media & Entertainment Strategies practice. "Even if the vast majority of today's viewers say they are happy with analog TV, it also goes without saying that virtually none of these viewers have ever seen a digital picture." Penhune believes consumer electronics retailers will play a critical role in letting consumers get their first look at DTV. But demonstrating the new technology will be a challenge for most retailers, who may be reluctant to invest the floor space, inventory dollars and sales personnel needed to display high-cost DTV equipment in their stores.

High hardware costs will also be a major factor slowing adoption of DTV receivers in the immediate future. With prices for first-generation DTV sets running between $7,000 and $10,000 the Yankee Group predicts that less than 200,000 units will be sold in the U.S. by the end of next year, with total penetration rising to only 2.5 percent of households by the end of 2002.

These findings, along with additional consumer research and forecasts for DTV, are included in Digital TV: Opportunities and Obstacles, a new report from the Yankee Group's Media & Entertainment Strategies service. The company's Media & Entertainment Strategies practice examines the tradeoffs that businesses and consumers must make as traditional forms of media are joined by new products, services, and applications.

About the Yankee Group
The Yankee Group (a subsidiary of Primark Corporation) is an information technology and communications market research firm specializing in helping users and vendors link their technology strategy to their business strategy. Established in Boston, Massachusetts in 1970, it has built a solid reputation worldwide for analysis of the key issues in information technology. Yankee Group clients number more than 700, and represent a wide range of business and industries. Each year, the Yankee Group sponsors numerous technology-related conferences around the world. Additional information is available at http://www.yankeegroup.com.

Primark Corporation (NYSE: PMK;PSE) is a global information services organization headquartered in Waltham, Massachusetts. Primark provides financial, economic, and market research information services to the financial, corporate and government markets. Additional information is available at http://www.primark.com.