Nick
08-17-06, 06:10 AM
Although cable TV service continues to lose market share to satellite, digital services
are steadily getting more intrenched. New research is showing digital cable has
increased 11 percent with industry-wide penetration jumping from 30 percent last
year to 41 percent today.
According to a report released Wednesday from J.D. Power and Associates, the
increase in digital service usage is being fueled by greater availability of digital
video, data and voice bundling options.
Currently, the firm said, 29 percent of U.S. households subscribe to satellite service
alone (up two percent from 2005) while 58 percent of homes subscribe only to cable
(down from last year's 60). With additional one percent of households subscribing
to both cable and satellite services, a total of 88 percent of U.S. subscribers have
either or both, the company said.
"Digital service is the key for consumers in taking advantage of the aggressively
marketed triple-play bundle of digital video, voice and internet services," said
Steve Kirkeby, executive research director at J.D. Power. "With analog cable
subscribers increasingly converting to digital, this becomes a major advantage
for cable companies in the race against satellite providers to maintain market
share." Plus, the analyst said, increased popularity of bundled services is another
contributor to a decrease in monthly payments for cable subscribers.
The report also factored in the "significant" increase of DVR usage over the past
year. Thirty-eight percent of cable subscribers and 25 percent of satellite subscribers
report that they are using DVRs supplied by their provider, while another 24 percent
of customers report using TiVo as their DVR, the company said.
www.SkyReport.com - used with permission
are steadily getting more intrenched. New research is showing digital cable has
increased 11 percent with industry-wide penetration jumping from 30 percent last
year to 41 percent today.
According to a report released Wednesday from J.D. Power and Associates, the
increase in digital service usage is being fueled by greater availability of digital
video, data and voice bundling options.
Currently, the firm said, 29 percent of U.S. households subscribe to satellite service
alone (up two percent from 2005) while 58 percent of homes subscribe only to cable
(down from last year's 60). With additional one percent of households subscribing
to both cable and satellite services, a total of 88 percent of U.S. subscribers have
either or both, the company said.
"Digital service is the key for consumers in taking advantage of the aggressively
marketed triple-play bundle of digital video, voice and internet services," said
Steve Kirkeby, executive research director at J.D. Power. "With analog cable
subscribers increasingly converting to digital, this becomes a major advantage
for cable companies in the race against satellite providers to maintain market
share." Plus, the analyst said, increased popularity of bundled services is another
contributor to a decrease in monthly payments for cable subscribers.
The report also factored in the "significant" increase of DVR usage over the past
year. Thirty-eight percent of cable subscribers and 25 percent of satellite subscribers
report that they are using DVRs supplied by their provider, while another 24 percent
of customers report using TiVo as their DVR, the company said.
www.SkyReport.com - used with permission