DVR Fuels Residential TV Revenues

October 19, 2011

jdpower-residential-tv-oct-2011.JPGGrowth in residential television service revenues is being fueled by increased penetration of DVR hardware and additional viewing services, according to the J.D. Power and Associates 2011 US Residential Television Service Satisfaction Study. DVR subscriptions among residential TV customers with cable service have grown to 45% in 201, up 18% from 38% in 2010.

Among households with satellite TV service, study data indicates 64% in 2011 have DVR boxes, up 8% from 59% in 2010. In addition, the proportion of households with more than one DVR box has notably increased. Among households with cable service, 35% have multiple DVR boxes in 2011, a 25% jump from 28% in 2010. Among households with satellite service, this figure has increased 12%, to 45% in 2011 from 40% in 2010.

AT&T, DirecTV Lead in Customer Satisfaction

The study measures customer satisfaction with cable, satellite and Internet protocol (IPTV) television providers in four regional segments: North Central, East, West and South. In each segment, six factors are measured to determine overall customer satisfaction: programming; performance and reliability; customer service; cost of service; billing; and offerings and promotions.

For a fourth consecutive year, AT&T U-verse ranks highest in the West (with an index score of 686 on a 1,000-point scale) and South (687) regions. For a second consecutive year, AT&T U-verse also ranks highest in the North Central region (699). In the East region, DirecTV ranks highest with a score of 686.

VOD Provides Bright Spot

The study finds that video-on-demand (VOD) was a bright spot for service providers in 2011. VOD viewership rose a little more than 10%, to 39% from 35% in 2010, among cable subscribers, and 12.5%, to 18% from 16%, among satellite subscribers. In addition, 39% of viewers who watch 10 or more hours of VOD per month consider themselves loyal to their provider, while the average among non-VOD users is 31%.

Cable Penetration Slightly Grows

The study finds that speculation regarding the impending demise of premium channels such as HBO and Showtime may be premature. While penetration of premium channels in households with satellite service has declined to 29% in 2011 from 34% in 2010, penetration in households with cable service is up slightly to 30% from 29 percent during the same period.

Triple Play Billing Rises 6%

Average monthly billing for triple-play customers, those subscribing to telephone, television and internet service, climbed 6% to $149.52 in 2011 from $140.90 in 2010.

Nielsen: Asians Lead in US Cable Access

Asians had the highest rate (65%) of US wired cable TV access during Q1 2011, according to The Nielsen Company Q1 2011 Cross-Platform Report. African-Americans closely followed with 63% access, while Hispanics had the lowest cable TV access (51%). Meanwhile, Hispanics led in access to both satellite TV (35%) and broadcast TV only (15%). Asians also had the highest rate of access to telco-based TV (9%), although only three percentage points separated the highest and lowest access rates to this TV technology.

About the Data: The 2011 US Residential Television Service Satisfaction Study is based on responses from 23,880 customers nationwide that evaluated their cable, satellite or telephone company-based provider. The study was fielded in four waves: November 2010, January 2011, April 2011 and July 2011. The study, published by J.D. Power and Associates, is the source of the enclosed chart.

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