J.D. Power and Associates Reports: Cable and Satellite Television Growth Fueled by Uptick in Market Penetration of DVRs and Other Services
WESTLAKE VILLAGE, Calif., Oct. 13, 2011 /PRNewswire/ — Growth in residential television service revenues is being fueled by increased penetration of DVR hardware and additional viewing services, according to the J.D. Power and Associates 2011 U.S. Residential Television Service Satisfaction Study(SM) released today.
DVR subscriptions among residential TV customers with cable service have grown to 45 percent in 2011 from 38 percent in 2010. Among households with satellite TV service, 64 percent in 2011 have DVR boxes, compared with 59 percent in 2010. In addition, the proportion of households with more than one DVR box has notably increased. Among households with cable service, 35 percent have multiple DVR boxes in 2011, compared with 28 percent in 2010. Among households with satellite service, this figure has increased to 45 percent in 2011 from 40 percent in 2010.
“As prices continue to fall, penetration of HDTVs in homes has increased by 8 percentage points during the past year,” said Frank Perazzini, director of telecommunications at J.D. Power and Associates. “Increased integration of HDTVs with multi-room DVR setups has been key to driving additional revenue for service providers. In fact, average monthly billing for triple-play customers, those subscribing to telephone, television and Internet service, climbed to $149.52 in 2011 from $140.90 in 2010.”
The study finds that video-on-demand (VOD) was also a bright spot for service providers in 2011. VOD viewership rose to 39 percent from 35 percent in 2010 among cable subscribers and to 18 percent from 16 percent among satellite subscribers.
“Regular VOD viewing improves loyalty,” said Perazzini. “Thirty-nine percent of viewers who watch 10 or more hours of VOD per month consider themselves loyal to their provider, while the average among non-VOD users is 31 percent.”
The study measures customer satisfaction with cable, satellite and Internet protocol (IPTV) television providers in four regional segments: North Central, East, West and South. In each segment, six factors are measured to determine overall customer satisfaction: programming; performance and reliability; customer service; cost of service; billing; and offerings and promotions.
For a fourth consecutive year, AT&T U-verse ranks highest in the West (with an index score of 686 on a 1,000-point scale) and South (687) regions. For a second consecutive year, AT&T U-verse also ranks highest in the North Central region (699). In the East region, DIRECTV ranks highest with a score of 686.
The study also finds that speculation regarding the impending demise of premium channels such as HBO and Showtime may be premature. While penetration of premium channels in households with satellite service has declined to 29 percent in 2011 from 34 percent in 2010, penetration in households with cable service is up slightly to 30 percent from 29 percent during the same period.
The 2011 U.S. Residential Television Service Satisfaction Study is based on responses from 23,880 customers nationwide that evaluated their cable, satellite or telephone company-based provider. The study was fielded in four waves: November 2010, January 2011, April 2011 and July 2011.
East Region J.D. Power.com Customer Satisfaction Index Power Circle Ranking Ratings (Based on a 1,000-point scale) For Consumers DIRECTV 686 5 Verizon FiOS 677 5 DISH Network 664 4 Cox 634 3 *East Region Major Provider Average 631 3 iO TV (Cablevision) 617 3 XFINITY (Comcast) 600 2 Time Warner Cable 596 2 Charter Communications 580 2 RCN 572 2 *The Major Provider Average for this region includes only those carriers with market share of 1.9% or greater.
South Region J.D. Power.com Customer Satisfaction Index Power Circle Ranking Ratings (Based on a 1,000-point scale) For Consumers AT&T U-verse 687 5 Bright House Networks 683 5 Verizon FiOS 682 5 DISH Network 681 5 DIRECTV 673 4 Cox 653 3 *South Region Major Provider Average 646 3 Suddenlink 638 3 Insight Communications 637 3 Time Warner Cable 611 2 XFINITY (Comcast) 601 2 Charter 580 2 *The Major Provider Average for this region includes only those carriers with market share of 1.9% or greater.
North Central Region J.D. Power.com Customer Satisfaction Index Power Circle Ranking Ratings (Based on a 1,000-point scale) For Consumers AT&T U-verse 699 5 WOW! 697 5 DIRECTV 682 4 Insight Communications 671 4 DISH Network 663 4 Bright House Networks 638 3 *North Central Region Major Provider Average 638 3 XFINITY (Comcast) 599 2 Time Warner Cable 597 2 Charter 579 2 *The Major Provider Average for this region includes only those carriers with market share of 1.9% or greater.
West Region J.D. Power.com Customer Satisfaction Index Power Circle Ranking Ratings (Based on a 1,000-point scale) For Consumers AT&T U-verse 686 5 Verizon FiOS 680 5 DIRECTV 676 5 DISH Network 658 4 Cox 640 3 *West Region Major Provider Average 637 3 XFINITY (Comcast) 615 3 Time Warner Cable 609 2 Charter 557 2 Mediacom 555 2 *The Major Provider Average for this region includes only those carriers with market share of 1.9% or greater.
Power Circle Ratings Legend: 5 - Among the best 4 - Better than most 3 - About average 2 - The rest
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
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