Keep in mind when evaluating this report that INHD is owned in part by the cable industry. _Dale Cripps INHD SURVEY SHEDS NEW LIGHT ON CABLE'S HIGH-DEFINITION AUDIENCE, THEIR CUSTOMER SATISFACTION AND VIEWING HABITS Cable Shines With High Points From HD Viewers, INHD Takes Top Marks For Picture Quality PHILADELPHIA - July 26, 2005 - HDTV pioneer INHD has uncovered new information about high-def customers, their level of satisfaction and viewing habits. Findings in the research (an independent telephone survey conducted by Frank N. Magid Associates on behalf of INHD with more than 1,100 digital cable subscribers with HDTV sets and high-definition service) included a marked shift in common demographic assumptions about HD viewers and uncovered an overwhelming satisfaction with cable's HD offering. The study also sheds new light on where HD networks rank in terms of quality. Cable On Top Cable is making a tremendous impression with HD subscribers as an overwhelming 71% of those polled stated that they were very or somewhat satisfied with their cable high-def service. For the vast majority, the satisfaction stems from having a local cable system that is on call to provide technical support (58% rated this "very important"). In addition, 50% of those surveyed noted access to local broadcast channels in HD, ease of instillation and the fact that there was no extra equipment to buy as "very important" factors in their decision to choose cable for their HD service. "With more TV channels, a growing number of HD networks and limitless viewing options through On Demand and DVRs, television viewing is becoming more and more complex," said Sergei Kuharsky, Executive Vice President, Sales and Marketing for INHD parent company iN DEMAND Networks. "We've found that cable's local nature, with customer reps and offices with a solid presence in each community, offers subscribers an important level of comfort." On the programming front, cable delivers the goods in terms of quality, with 90% of respondents very or somewhat satisfied with their high-def picture quality, and 80% with audio quality. While those polled noted that they would like more HD programming - one out of four said that they are very or somewhat satisfied with the amount available - the good news for cable is that practically all, an overwhelming 97%, say that they are likely to continue to subscribe to their HD service. "It's no surprise that HD viewers want more programming," said Jo Holz, Vice President of Research for iN DEMAND. "However, our survey has uncovered something very important and encouraging - cable subscribers are more than happy with their high-def service, and they plan on sticking with it as INHD and other networks develop more quality high-def programming." Who's Watching, What Are They Watching, And Why? One of the more common assumptions in the world of HDTV is that the viewing audience is made up almost entirely of men. INHD's study uncovered that almost half, 48%, of those polled were women who were avid HDTV viewers. According to the poll, HD viewers skew younger than the national average, with 69% of the respondents landing in the 25-49 age group, compared to 45% of the general public. In addition, HDTV viewers continue to reside in some of the most affluent households in the country, with 38% of HD viewers boasting household incomes of $100,000 or more, compared to the national average of 10%. When deciding what to watch on television, those with HD service spend about half of their weekly viewing time with high-def programming. In fact, one in four of those polled in INHD's study go straight to their HD channels before looking for anything else to watch, with another 25% responding that they do this most of the time. Whether or not a program is in high-def has an impact on viewing, as one in four said that they often wind up watching shows in HD that they normally would not watch if they were broadcast in standard definition. Overall, viewers migrate to the high definition networks that score high points in the areas that the survey respondents deemed most important - "has great picture quality" (rated four or five in importance on a five-point-scale by 98% of respondents), "is entertaining" (91%), and "has all of its programming in true high definition" (86%). Based on these criteria, those surveyed rated INHD very high in overall quality. Of those polled who watch INHD, 97% rated the network either a four or five on a five-point-scale for picture quality, making INHD #1 among all national cable HD networks. INHD also ranked #1 for having all of its programming in true high-definition, with 87% of viewers giving it high marks.