Digital Satellite TV vs. Digital Cable

Digital satellite TV is winning converts from quality, service and customer satisfaction. If the competition for television viewers were a sporting event, it would be still early in the game but digital satellite would be ahead by several runs.

In a recent survey conducted by Scientific-Atlanta Inc. on digital satellite users the following results showed:

Customer satisfaction -- More digital satellite subscribers report being extremely satisfied with their service.
Customer loyalty - Digital Satellite subscribers claim to be more likely to remain subscribers over time.
Customer advocacy - Satellite subscribers are more likely to recommend their digital service to others

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Key factors likely influencing satisfaction, loyalty, and advocacy include:

Price - Digital satellite TV subscribers on the average pay $14 less per month than digital cable, excluding the upfront purchase price.
Performance - Digital satellite TV subscribers rate picture quality and service reliability higher than digital-cable subscribers do.
Value - Digital satellite TV subscribers are more likely to pay for additional receivers and outlets than digital-cable subscribers are.

Because of the overwhelming satisfaction of digital satellite TV customers, satellite service provides are stealing a significant share of the multichannel video market from cable service providers. Approximately 60 percent of new digital-satellite subscribers defected from cable, while only 4 percent of digital-cable subscribers defected from satellite. That alone is reason enough to select digital satellite over cable.

With average market valuations of $4,500 or more per subscriber the mass defection to digital satellite TV is costing cable a significant amount. In 2003 satellite service providers added roughly 3 million new subscribers. If 60 percent of those new subscribers defected from cable, then the cable industry would have lost -- temporarily or more permanently -- upwards of $8 billion in market value. Ouch!