DVR, VOD Is Propelling TV Revenue
Higher home television revenue is being driven by new TV-related services and equipment, including DVR units, HDTVs, VOD and other services.
J.D. Power and Associates says some of this evidence comes from high average monthly bills of triple-play consumers -- phone, television, and Internet -- which has risen to $149.52 in 2011 from $140.90 a month in 2010.
The study says growth of HDTV in homes grew 8%, while DVR penetration of U.S. home is now at 45%, up from 38% in 2010. Also, now 35% of TV homes have multiple DVR units in 2011, up from 28% the year before.
Adding to this, video-on-demand viewership is up 39% from 35% -- and that helps consumers retain their cable, satellite and telco services. The report says: "Regular VOD viewing improves loyalty. 39% 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%."
In its annual study of best providers: AT&T U-verse and DirecTV rank the highest in customer satisfaction among all TV service providers.
For a fourth consecutive year, AT&T U-verse ranks highest in the West and South regions of the U.S. For a second consecutive year, AT&T U-verse also ranks highest in the North Central region (699). East Coast consumers place DirecTV on top.
The study notes penetration of premium channels in with satellite service homes has declined to 29% in 2011 from 34% in 2010, while penetration in cable homes is up slightly to 30% from 29%.