Satellite TV Grows in Popularity, Cable Declines
- by September 5, 2002
About 82% of U.S. households have some type of cable or satellite TV service, according to a combination of U.S. government and J.D. Power and Associates data. The J.D. Power and Associates study surveys consumers who subscribe to the largest satellite or cable TV services.
"While the study shows the average expenditure for both information/entertainment services is now nearly equal, more consumers are electing to switch services to satellite TV providers," said Steve Kirkeby, senior director of telecommunications for J.D. Power and Associates.
Satellite-only subscription continues to rise, increasing from 14% of total households in 2001 to 16% in 2002. Satellite subscription in 1996 was only 5%. Cable-only subscription continues a slow decline from 65% in 2001 to 63% in 2002.
"In overall customer satisfaction performance, DirecTV ranks highest among the 14 major providers of cable/satellite TV services nationwide -- 18 index points higher than the cable TV service average," Kirkeby said. "DirecTV performs well across all the factors that comprise overall customer satisfaction. Their particular strength is in the area of customer service. While the overall industry average is declining in answering questions and solving problems the first time, DirecTV's performance in this area is actually increasing."
The six factors driving overall customer satisfaction include: cost of service; credibility/billing; program offerings; equipment and service capabilities; customer service; and reception quality.
Following DirecTV in the rankings are DISH Network, Wide Open West, Cox and RCN.
The study shows that one long-standing trend has been reversed. For the first time, customer satisfaction with satellite company technician visits to customers' homes falls below that of cable companies. In addition, the cable industry's movement toward digital subscription remains strong, growing from 27% in 2001 to 32% in 2002.
"Last year, we saw a 14 point rise in overall satisfaction due to conversion from analog service to digital," said Kirkeby. "This year, overall satisfaction only rises by half as much."
While channel line ups have improved for cable subscribers, average monthly cable expenditure is also rising, according to study respondents. Average monthly cable expenditure is $47.08, bringing it closer to the average monthly satellite expenditure of $50.71.
The 2002 Cable/Satellite TV Customer Satisfaction Study is based on responses from nearly 4,000 U.S. households that evaluated their satellite or cable TV provider. The 14 providers included in the study comprise more than 80% of the domestic market share for cable/satellite TV service.
