As the battle for multi-channel customers continues, a new study reveals that the number of digital cable subscribers has edged out in front of satellite, despite it being the more expensive option.
The
State Of Digital and Interactive Television 2004 study, reveals 25% of consumers surveyed have digital cable services, while 20% have a satellite dish. Where digital cable is available, 45% of multi-channel households choose to be on a digital platform, either from their cable or satellite provider.
Howard Horowitz, president said: “Over the past few years, since the mass deployment of digital cable, there has been an important shift in the marketing or, and subsequently, consumer perception of, the competing platforms.”
The report says that churn rate is an issue for both digital cable and satellite, although customers loyalty to satellite appeared stronger, with only 8% of satellite subscribers saying they may discontinue their service within the next six months but for digital cable, 22% said they may remove or downgrade the service.
When it come to satisfaction with the services provided, satellite once again faired better with 31% of customers saying it was ‘better than expected’, compared to cable with only 22% of customers expressing a similar view.
It also seems that consumers no longer regard satellite as the more advanced system, as many of cable’s customers seem to fit the profile of ‘high-end technology consumers’, says the report.
Horowitz added: “Digital cable’s position and pricing puts itself in the category of more expensive, but valuable service because it can deliver technology and services that simply is not available on satellite. The satellite providers, aware of the limitations of their platform, have successfully shifted their focus from attracting the ‘early adopter techies’ to appealing to the budget-conscious consumer.”
Cable customers are also more likely to pay for premium channels, as 65% of survey respondents said they have previously paid, with 42% of this group saying they have paid for two or more channels. In contrast, 55% of satellite subscribers pay for premium channels, with 37% being multi-pay channel subscribers.
However, pay-per-view (PPV) usage between digital cable and satellite customers is on a par, with 39% of digital and 41% of satellite subscribers saying they order at least one PPV move a month.
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