GAP IN SATISFACTION BETWEEN CABLE AND DBS SUBSCRIBERS NARROWING
Bundled Cable Subscribers are More Satisfied than Others
Durham, NH - May 21, 2009 - New consumer research from Leichtman Research Group, Inc. (LRG) finds that 62% of US cable TV subscribers are very satisfied with their cable TV company (rating satisfaction 8-10 on a 10-point scale), while 66% of satellite TV subscribers are very satisfied with their Direct Broadcast Satellite (DBS) TV company – representing a difference in levels of satisfaction that, for the first time, is not statistically significant.
The gap in the levels of satisfaction between cable and DBS subscribers has narrowed over the past several years, with satisfaction among cable TV subscribers gradually increasing, and satisfaction among DBS subscribers declining slightly. In 2004, 53% of cable TV subscribers were very satisfied, compared to 70% of DBS subscribers.
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 & Telcos: Competing for Customers 2009. This is LRG’s seventh annual study of this topic.
LRG’s research also found that:
- 72% of Telco video subscribers are very satisfied with their TV company (while based on a relatively small sample, this is above the industry average)
- 62% of all households currently receive a bundle of services (TV, Internet, and/or telephone) from one company – up from 33% four years ago
- 66% of those who get bundled services from cable are very satisfied with their cable TV company – compared to 55% who get only cable TV
- 86% of households nationwide subscribe to some form of multi-channel video service – an all-time high
“In an increasingly saturated multi-channel video market, competition from DBS and Telcos resulted in a loss of over 850,000 video subscribers for the cable industry in 2008. Yet, at the same time, the industry added over seven million high speed Internet and telephone subscribers,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “The increased number of consumers choosing to bundle high speed Internet and/or telephone service with cable TV has been crucial in increasing the overall satisfaction of cable subscribers over the past several years."
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 & Telcos: Competing for Customers 2009 is based on a telephone survey of 1,600 adults age 18+ from throughout the continental US that was conducted in March-April 2009. The random sample of respondents was distributed and weighted 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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