• by Wayne Friedman , October 15, 2012

Cord-cutting? That doesn't work for the high-paying cable consumers.

Research from J.D. Power and Associates says 31% of premium TV subscribers say they "definitely will not" switch providers, compared with other cable subscribers. This compares to expanded basic subscribers, who tally a 22% "definitely not" switch conclusion, and 20% for those basic programming packages consumers.

For premium package subscribers, this equates to a 716 "satisfied" index (on a 1,000-point scale), with a 677 satisfied index for expanded basic subscribers and a 656 for basic subscribers.

That said, the research notes that premium package subscribers account for the fewest number of subscribers (13%), compared with expanded basic (38%) and basic (49%) subscribers.

The study says premium TV customers are "more loyal and more likely to purchase additional products from their television provider than are subscribers with basic and expanded basic programming packages." For example, the research says 42% of these premium TV customers are likely to order video-on-demand programs in the next six months -- versus 37% for expanded basic customers and 27% for basic cable subscribers.

In addition, the research has found many higher-paying cable customers are brand fans -- 26% of premium-package subscribers say they "definitely will" recommend their provider. This compares to 15% for expanded basic consumers and 14% regular basic-package owners.

Frank Perazzini, director of telecommunications at J.D. Power and Associates, stated: "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."

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