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J.D. Power Releases 2008 Residential Television Service Satisfaction Study

AT&T U-verse and Verizon FiOS Lead Regional Customer Satisfaction Rankings Among Cable, Satellite and Internet Television Service Providers

AT&T U-verse ranks highest in customer satisfaction in three regions and Verizon FiOS ranks highest in one region among television service providers, according to the J.D. Power and Associates 2008 Residential Television Service Satisfaction Study(SM) released today.

The study measures customer satisfaction with cable, satellite and Internet protocol (IPTV) television providers in four regional segments: North Central, East, West and South. Within each segment, five factors are measured to determine overall customer satisfaction: performance and reliability; customer service; cost of service; billing; and offerings and promotions. Customer satisfaction with video provider performance is reported as an index score based on a 1,000-point scale.

AT&T U-verse ranks highest in the North Central (with an index score of 730), West (697) and South (706) regions. In the East region, Verizon FiOS ranks highest with a score of 677. This is the first year both AT&T U-verse and Verizon FiOS are included in the study. AT&T U-verse and Verizon FiOS perform particularly well in the offerings and promotions factor, specifically with their bundled pricing options. Both providers also perform well in the performance and reliability factor, especially regarding reception clarity.

“With the addition of AT&T and Verizon to the residential television service market, competition has intensified among providers that bundle voice, television and data services on a single bill,” said Frank Perazzini, director of telecommunications at J.D. Power and Associates. “Ultimately, the consumer is going to be the big winner in this battle as cable, satellite and IPTV providers strive to offer the highest quality television experiences at competitive price points.”

The study finds that the number of households that report viewing high definition television (HDTV) programming has nearly doubled since 2007, reaching 55 percent of households in 2008.

“The sharp increase in HD programming across virtually all providers has helped drive HDTV set sales,” said Perazzini. “The rise in the adoption of HDTV has also been a boon for the video-on-demand (VOD) market. Households that receive HD programming view nearly twice as many hours, on average, of VOD or pay-per-view programming per month as non-HD households.”

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The study also finds the following trends:

  • One-half of cable customers currently bundle their video and Internet service together, while 19 percent of customers subscribe to “triple-play” services (television, voice and Internet).
  • Penetration of digital video recorders (DVRs) continues to increase, with 44 percent of customers stating they use a DVR, compared with 38 percent in 2007.
  • Among customers who receive electronic bills, the overall satisfaction score averages 629, while among customers who receive only a paper bill, overall satisfaction averages 600.

The 2008 Residential Television Service Satisfaction Study is based on responses from 18,938 U.S. households that evaluated their cable, satellite or IPTV provider. The study was fielded in July 2008.

Customer Satisfaction Index Ranking

J.D. Power.com Power Circle Ratings

North Central Region (Based on a 1,000-point scale)

Provider Index Score For Consumers
AT&T U-verse 730 5
WOW! 702 4
DIRECTV 660 4
Insight 655 4
Cox 639 4
DISH Network 627 4
Bright House 611 3
North Central Region Major Provider 598 3
Time Warner Cable 581 3
Comcast 554 2
Mediacom 547 2
Charter 538 2

Included in the North Central Region are: Illinois, Indiana, Michigan, Ohio and Wisconsin.

East Region (Based on a 1,000-point scale)

Provider Index Score For Consumers
Verizon FiOS 677 5
DIRECTV 652 4
DISH Network 636 4
Cablevision 620 4
Cox 617 4
East Region Major Provider Average 603 3
RCN 599 3
Time Warner Cable 595 3
Charter 566 2
Comcast 566 2

Included in the East Region are: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia.

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West Region (Based on a 1,000-point scale)

Provider Index Score For Consumers
AT&T U-verse 697 5
Verizon FiOS 673 4
DIRECTV 654 4
Cox 644 4
DISH Network 642 4
Cable One 619 3
West Region Major Provider Average 614 3
Time Warner Cable 582 2
Comcast 580 2
Charter 564 2
Mediacom 535 2

Included in the West Region are: Arizona, California, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.

South Region (Based on a 1,000-point scale)

Provider Index Score For Consumers
AT&T U-verse 706 5
Verizon FiOS 688 4
DIRECTV 662 4
DISH Network 650 4
Insight 647 4
Bright House 643 4
Cox 638 4
South Region Major Provider Average 617 3
Cable One 601 3
Suddenlink 599 3
Comcast 580 2
Time Warner Cable 580 2
Charter 548 2
Mediacom 537 2

Included in the South Region are: Alabama, Arkansas, Florida, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee and Texas.

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, training 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.

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