Pay television in Australia : An application of functional measurement to telecommunications demand forecasting

Assessing market acceptance of different options in cable and over-the-air subscription television is essential in the planning stages of these products. This article provides an outline of a new estimation method, 'functional measurement' which can assess demand for an as yet hypothetical product. A study is described which used functional measurement to forecast demand for 16 different options in pay television in Australia, and the projected time paths of penetration for the new services. The article concludes by offering outline steps for researchers needing to assess demand for any potential new telecommunications products.