• by Jack Loechner , Staff Writer @mp_research, July 1, 2009

New consumer research from Leichtman Research Group finds that the gap in the levels of satisfaction between cable and DBS subscribers has narrowed over the past several years. 62% of US cable TV subscribers are very satisfied with their cable TV company, while 66% of satellite TV subscribers are very satisfied with their Direct Broadcast Satellite TV company... a difference in levels of satisfaction that, for the first time, is not statistically significant. In 2004, 53% of cable TV subscribers were very satisfied, compared to 70% of DBS subscribers.

The findings, a part of a new LRG study, Cable, DBS & Telcos: Competing for Customers 2009,  also found that:

• 72% of Telco video subscribers are very satisfied with their TV company (while based on a relatively small sample, this is above the industry average)
• 62% of all households currently receive a bundle of services (TV, Internet, and/or telephone) from one company, up from 33% four years ago
• 66% of those who get bundled services from cable are very satisfied with their cable TV company, compared to 55% who get only cable TV
• 86% of households nationwide subscribe to some form of multi-channel video service, an all-time high

In an increasingly saturated multi-channel video market, competition from DBS and Telcos resulted in a loss of over 850,000 video subscribers for the cable industry in 2008, says the LRG study. At the same time, the industry added over seven million high speed Internet and telephone subscribers. The increased number of consumers choosing to bundle high speed Internet and/or telephone service with cable TV has been crucial in increasing the overall satisfaction of cable subscribers over the past several years.

Top 10 Cable MSOs in the U.S. (End of 1Q 2009)
	Passings	Subscribers	Availability	Penetration	Net Adds in 1Q 2009	Net Adds in 1Q 2008
Basic Cable	115,500,000	56,955,000	49.3%		(44,000)	28,000
Digital Cable	115,100,000	38,900,000	99.7%	68.3%	600,000	1,055,000
Broadband Internet	114,300,000	37,450,000	99%	32.8%	830,000	1,190,000
Telephone	103,300,000	17,800,000	95%	17.2%	715,000	1,170,000
Sources: The Companies and Leichtman Research Group, Inc., June 2009

In addition, the LRG research found that:

• 89% of all households with annual incomes over $75,000 subscribe to a broadband service, compared to 37% of households with incomes under $30,000
• 38% of households with annual incomes under $30,000 do not have a computer at home, and only half of households in this income group subscribe to any type of Internet service at home

Broadband Service by Household Income
Annual Household Income	Have a Computer	Internet at Home	Subscribe to Broadband
Under $30,000	62%	50%	37%
$30,000-$75,000	87%	81%	70%
Over $75,000	97%	94%	89%
Source: LRG Research notes, June 2009

Other key findings include:

• 67% of broadband subscribers are very satisfied (8-10) with their service, while just 4% are not satisfied (1-3)
• 29% of broadband subscribers are very interested (8-10) in receiving faster Internet access at home, while 37% are not interested (1-3)
• Overall, 3% of Internet subscribers say that broadband is not available in their area

For additional information from LRG about the "gap" narrowing, please visit here. Or, for information about current subscription rates, visit here.