• by David Kaplan , September 22, 2004

U.S. Digital Television, the first over-the-air digital subscription cable channel service in the United States, has surpassed 10,000 subscribers.

Since its launch in March, the company has introduced its cable service to Salt Lake City, where it's headquartered, as well as Albuquerque, N.M. and Las Vegas, with plans for additional market rollouts this year.

"There has been exceptional consumer response to our unique new service," said Steve Lindsley, chairman and chief executive officer of U.S. Digital. "Our growing base of subscribers demonstrates that the model works and that there is a strong and viable new business for broadcasters in the pay TV industry."

More than half of its customers are those that subscribe to neither cable nor satellite, but continue to use VHF/UHF antennas for their television service. U.S. Digital's research indicates subscribers are attracted by promise of DVD/HD picture quality and the low-cost subscription rates. In an independent customer satisfaction survey conducted by Ridder/Braden, USDTV scored higher than cable and satellite for overall satisfaction. In addition, more than 80 percent of USDTV subscribers said that they would recommend the service to family and friends.