Rabbit ears are about to become a historical footnote as analog TV transmission ends, but today’s consumers have an ever-expanding number of choices when it comes to digital television providers. Cable, satellite and telecom companies offering Internet protocol (IPTV) television are all battling to capture consumers, increasingly offering bundled services that include voice, video and data communications. That fierce competition is great for consumers looking for the highest-quality video experiences at competitive price points.
The J.D. Power and Associates 2008 Residential Television Service Satisfaction StudySM measures customer satisfaction with cable, satellite and providers in four regional segments: North Central, East, West and South. We analyzed five elements that are key to customer satisfaction: performance and reliability; customer service; cost of service; billing; and offerings and promotions.
The dropping cost of high definition (HD) capable televisions is changing the user experience. In 2008, 90 percent of households report having at least one HD-capable television -- a dramatic rise from 49 percent in 2007. Most households without a HD-capable television intend to remedy that soon, with 58 percent reporting that they intend to buy one within the next six months.
The top ranking companies are newcomers to the residential television service survey, a testament to how rapidly this industry is changing and how competitive it is.
AT&T U-Verse ranks highest in three out of four regions: East, West and South. Verizon FiOS ranks highest in the North Central region. Both communications providers perform particularly well in the offerings and promotions factor, specifically with their bundled pricing options. They also both excel in the performance and reliability factor, especially regarding picture clarity.
Other consumer trends include:
- A sharp increase in thee video-on-demand (VOD) market l. Households that receive HD programming view nearly twice as many hours of VOD programming per month as non-HD households.
- One-half of cable customers currently bundle their video and Internet service together, while 19 percent of customers subscribe to “triple play” services (video, voice and Internet).
- Penetration of digital video recorders (DVRs) continues to increase, with 44 percent of customers stating they use a DVR, compared with 38 percent in 2007.
- Customers who receive electronic bills record higher satisfaction ratings than customers who still receive only a paper bill.
For more information, view residential television service ratings or read the press release.
