WESTLAKE VILLAGE, Calif.: 15 October 2012 — Premium television package subscribers are more loyal and more likely to purchase additional products from their television provider than are subscribers with basic and expanded basic programming packages, according to the J.D. Power and Associates 2012 U.S. Residential Television Service Provider Satisfaction StudySM released today.
The study finds that 31 percent of premium package subscribers say they "definitely will not" switch providers, compared with subscribers of expanded basic (22%) and basic (20%) programming packages. Additionally, premium package subscribers serve as brand advocates more often, as 26 percent say they "definitely will" recommend their provider, compared with subscribers of expanded basic (16%) and basic (14%) packages.
Overall customer satisfaction with residential television service directly correlates with a household's programming package. Premium package subscribers are most satisfied with their television service, reflected in an index score of 716 (on a 1,000-point scale). Satisfaction is significantly lower among expanded basic subscribers (677) and basic subscribers (656). Although having the highest satisfaction, premium package subscribers account for the fewest number of subscribers (13%), compared with expanded basic (38%) and basic (49%) subscribers.
"After several years of declining subscription to premium programming packages associated with the economic downturn and the introduction of attractive over-the-top alternatives, it appears premium programming is making a comeback," said Frank Perazzini, director of telecommunications at J.D. Power and Associates. "Premium package subscribers have proven to be better brand advocates. Television providers catering to these high-value subscribers with video-on-demand and mobile applications will be well positioned to keep these customers and grow their relationship, moving forward."
Although premium packages cost more than expanded basic and basic programming, satisfaction with cost of service is higher among premium package subscribers (633), than among expanded basic (588) and basic (567) subscribers. In fact, premium package subscribers are more willing to pay for even more video content, as 42 percent of these customers say they are likely to order video-on-demand programs in the next six months, which is significantly higher than among both expanded basic and basic cable subscribers (37% and 27%, respectively).
The study measures customer satisfaction with cable, satellite and Internet protocol (IPTV) television providers in four regional segments: North Central, East, West and South. Six factors are measured to determine overall customer satisfaction: programming; performance and reliability; customer service; cost of service; billing; and offerings and promotions.
Verizon FiOS ranks highest in the East Region with a score of 728, followed by DISH Network (719) and DIRECTV (711).
DIRECTV ranks highest (729), followed closely by AT&T U-verse with a score of 728. Verizon FiOS ranks third with a score of 714.
North Central Region
WOW! (Wide Open West) ranks highest with a score of 711, closely followed by AT&T U-verse (710) and DIRECTV (705).
DISH Network ranks highest with a score of 713. AT&T U-verse and DIRECTV follow in a tie with a score of 708 each.
J.D. Power and Associates offers consumers the following tips when shopping for a television service provider:
- Do your research. Talk with salespeople at different providers about their menu of services and any premiums or bonuses they might offer. Get word of mouth testimonials from customers. You'll usually find customer comments--praise and criticism--on the Internet if you search the name of the service provider.
- Understand the terms and conditions associated with new services or upgrades that are offered on a free trial basis: Go ahead and try them, but know that you may be automatically charged when the trial period is over--so if you decide you don't want the upgrade/extra, be sure to cancel it before the charges take effect.
The 2012 U.S. Residential Television Service Provider Satisfaction StudySM is based on responses from 20,750 customers nationwide who evaluated their cable, satellite or telephone company-based provider. The study was fielded in four waves: November 2011, January 2012, April 2012 and July 2012.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.
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