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J.D. Power and Associates Reports: Subscribers of Premium Television Packages Are Most Satisfied and Most Loyal to Their Provider

October 15, 2012

WESTLAKE VILLAGE, Calif., Oct. 15, 2012 /PRNewswire/ — Premium television package subscribers are more loyal and more likely to purchase additional products from their television provider than are subscribers with basic and expanded basic programming packages, according to the J.D. Power and Associates 2012 U.S. Residential Television Service Provider Satisfaction Study(SM) released today.

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The study finds that 31 percent of premium package subscribers say they “definitely will not” switch providers, compared with subscribers of expanded basic (22%) and basic (20%) programming packages. Additionally, premium package subscribers serve as brand advocates more often, as 26 percent say they “definitely will” recommend their provider, compared with subscribers of expanded basic (16%) and basic (14%) packages.

Overall customer satisfaction with residential television service directly correlates with a household’s programming package. Premium package subscribers are most satisfied with their television service, reflected in an index score of 716 (on a 1,000-point scale). Satisfaction is significantly lower among expanded basic subscribers (677) and basic subscribers (656). Although having the highest satisfaction, premium package subscribers account for the fewest number of subscribers (13%), compared with expanded basic (38%) and basic (49%) subscribers.

“After several years of declining subscription to premium programming packages associated with the economic downturn and the introduction of attractive over-the-top alternatives, it appears premium programming is making a comeback,” said Frank Perazzini, director of telecommunications at J.D. Power and Associates. “Premium package subscribers have proven to be better brand advocates. Television providers catering to these high-value subscribers with video-on-demand and mobile applications will be well positioned to keep these customers and grow their relationship, moving forward.”

Although premium packages cost more than expanded basic and basic programming, satisfaction with cost of service is higher among premium package subscribers (633), than among expanded basic (588) and basic (567) subscribers. In fact, premium package subscribers are more willing to pay for even more video content, as 42 percent of these customers say they are likely to order video-on-demand programs in the next six months, which is significantly higher than among both expanded basic and basic cable subscribers (37% and 27%, respectively).

The study measures customer satisfaction with cable, satellite and Internet protocol (IPTV) television providers in four regional segments: North Central, East, West and South. Six factors are measured to determine overall customer satisfaction: programming; performance and reliability; customer service; cost of service; billing; and offerings and promotions.

East Region
Verizon FiOS ranks highest in the East Region with a score of 728, followed by DISH Network (719) and DIRECTV (711).

South Region
DIRECTV ranks highest (729), followed closely by AT&T U-verse with a score of 728. Verizon FiOS ranks third with a score of 714.

North Central Region
WOW! (Wide Open West) ranks highest with a score of 711, closely followed by AT&T U-verse (710) and DIRECTV (705).

West Region
DISH Network ranks highest with a score of 713. AT&T U-verse and DIRECTV follow in a tie with a score of 708 each.

J.D. Power and Associates offers consumers the following tips when shopping for a television service provider:

  • Do your research. Talk with salespeople at different providers about their menu of services and any premiums or bonuses they might offer. Get word of mouth testimonials from customers. You’ll usually find customer comments–praise and criticism–on the Internet if you search the name of the service provider.
  • Understand the terms and conditions associated with new services or upgrades that are offered on a free trial basis: Go ahead and try them, but know that you may be automatically charged when the trial period is over–so if you decide you don’t want the upgrade/extra, be sure to cancel it before the charges take effect.

The 2012 U.S. Residential Television Service Provider Satisfaction Study(SM) is based on responses from 20,687 customers nationwide who evaluated their cable, satellite or telephone company-based provider. The study was fielded in four waves: November 2011, January 2012, April 2012 and July 2012.

    East Region
    Customer Satisfaction Index Ranking         J.D. Power.com Power Circle
                                                                    Ratings
    (Based on a 1,000-point scale)          For Consumers

    Verizon FiOS                        728                               5
    DISH Network                        719                               5
    DIRECTV                             711                               4
    iO TV                               685                               4
    East Region Average                 665                               3
    Cox Communications                  660                               3
    XFINITY (Comcast)                   642                               2
    Time Warner Cable                   622                               2

    South Region
    Customer Satisfaction Index Ranking      J.D. Power.com Power Circle
                                             Ratings
    (Based on a 1,000-point scale)          For Consumers

    DIRECTV                             729                              5
    AT&T U-verse                        728                              5
    Verizon FiOS                        714                              4
    DISH Network                        712                              4
    South Region Average                686                              3
    Bright House Networks               682                              3
    Cox Communications                  669                              3
    XFINITY (Comcast)                   655                              2
    Time Warner Cable                   651                              2
    Suddenlink                          649                              2
    Insight Communications              637                              2
    Charter Communications              635                              2

    North Central Region
    Customer Satisfaction Index Ranking      J.D. Power.com Power Circle
                                             Ratings
    (Based on a 1,000-point scale)          For Consumers

    WOW! (Wide Open West)               711                              5
    AT&T U-verse                        710                              5
    DIRECTV                             705                              5
    DISH Network                        699                              4
    Bright House Networks               664                              3
    Insight Communications              657                              3
    North Central Region Average        656                              3
    Time Warner Cable                   637                              3
    XFINITY (Comcast)                   619                              2
    Charter Communications              594                              2

    West Region
    Customer Satisfaction Index Ranking      J.D. Power.com Power Circle
                                             Ratings
    (Based on a 1,000-point scale)          For Consumers

    DISH Network                        713                              5
    AT&T U-verse                        708                              5
    DIRECTV                             708                              5
    Verizon FiOS                        704                              5
    Cox Communications                  675                              3
    West Region Average                 669                              3
    XFINITY (Comcast)                   642                              3
    Time Warner Cable                   635                              2
    Charter Communications              597                              2
    Mediacom Communications             566                              2

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 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.

About The McGraw-Hill Companies
McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

J.D. Power and Associates Media Relations Contact:
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; (818) 598-1115; jperlman@brandwarepr.com
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; media.relations@jdpa.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

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SOURCE J.D. Power and Associates


Source: PR Newswire