DBS Now the Leading Video Provider in Rural America
Cable Maintains Significant Advantage in Urban and Suburban Areas
Durham, NH – May 2, 2005 – New consumer research from Leichtman Research Group, Inc. (LRG) finds that rural areas nationwide now have more Direct Broadcast Satellite (DBS) subscribers than cable subscribers. Forty two percent of individuals who define themselves as living in a rural area report that they subscribe only to DBS; 37% to cable-only; and 2% to both cable and DBS. In a similar study last year, 38% in rural areas said that they subscribed to DBS-only, and an equal percentage to cable-only.
While DBS has made recent gains in urban and suburban areas, cable still has nearly a 4:1 subscriber advantage in these areas. Of those nationwide who identify themselves as living in an urban or suburban area, 63% report that they subscribe only to cable; 17% to DBS-only; and 2% to both cable and DBS. Last year in these areas, 65% said that they subscribed to cable-only; 13% to DBS-only and 2% to both cable and DBS.
These findings are based on a telephone survey of 1,600 randomly selected households from throughout the United States and are part of a new LRG study, Cable & DBS: Competing for Customers 2005. This is LRG’s third annual study of this topic.
Other key findings include:
- 81% of households nationwide subscribe to some form of multi-channel video service
- 89% report that cable TV is available where they live
- In rural areas, 71% say that cable TV is available - compared to 96% in urban areas and 97% in the suburbs
- Where cable TV is available, DBS penetration is twice as high in rural areas, as in other areas
- DBS continues to lead cable in customer satisfaction ratings, but a similar percentage of cable and DBS subscribers express a likelihood to switch providers in the next six months
“DBS now accounts for over 25 million subscribers nationwide,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “The impact of DBS has been greatest in areas where cable has not sufficiently upgraded its offerings to respond to the more competitive landscape.”
About Leichtman Research Group, Inc.
Leichtman Research Group, Inc. (LRG) specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.
Cable & DBS: Competing for Customers is based on a telephone survey of 1,600 adults age 18+ from throughout the continental US that was conducted in March 2005. The random sample of respondents was distributed to best reflect the demographic and geographic make-up of the US. The overall sample has a statistical margin of error of +/- 2.5%.
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