J.D. Power and Associates Reports:
Satisfaction with Cost of Service Declines Considerably among Television Service Customers
AT&T U-verse and Verizon FiOS Rank Highest in Customer Satisfaction with Television Service Providers
WESTLAKE VILLAGE, Calif.: 6 October 2010 - Residential television service customers are notably less satisfied with the cost of service, compared with 2009, according to the J.D. Power and Associates 2010 U.S. Residential Television Service Satisfaction StudySM released today.
Customer satisfaction with the cost of television service averages 541 on a 1,000-point scale in 2010, down 14 points from 555 in 2009. Customers of traditional cable providers are particularly dissatisfied with their cost of service. Satisfaction with fairness of prices paid among cable customers is 22 percent lower than among customers of telephone company providers (such as AT&T and Verizon) and 18 percent lower than among customers of satellite providers (such as DIRECTV and DISH).
"Despite this decline in satisfaction with cost of service, DVR adoption rates and video-on-demand access have experienced healthy gains," said Frank Perazzini, director of telecommunications at J.D. Power and Associates. "It's apparent, however, that TV providers must better communicate their price-value proposition, as customers are increasingly voicing irritation with the amount of their monthly bill. Seventy-four percent of customers who say they definitely or probably will change TV providers in the next year cite price as a major reason to switch."
The negative impact of the decline in cost of service scores among cable-based providers may also have affected customers' rates of recommendation regarding their television service providers. Among customers who receive programming from cable providers, 56 percent say they "definitely will" or "probably will" recommend their provider to others, a decrease of three percentage points from 2009. Seventy-seven percent of satellite-based television customers say the same-a decrease of one percentage point from 2009. In comparison, recommendation rates among customers of telephone company providers remain unchanged from 2009, averaging 84 percent in 2010.
Despite the considerable decline in satisfaction with cost of service, overall customer satisfaction with television service providers remains stable from 2009 and averages 629 in 2010-a decrease of three points from 632 in 2009.
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, five factors are measured to determine overall customer satisfaction: performance and reliability; customer service; cost of service; billing; and offerings and promotions.
For a third consecutive year, AT&T U-verse ranks highest in the West (with an index score of 698) and South (732) regions. AT&T U-verse also ranks highest in the North Central region (728). In the East region, Verizon FiOS ranks highest for a third consecutive year with a score of 679.
The study also finds that the number of digital cable customers who subscribe to "basic-only" service has increased to 44 percent in 2010 from 40 percent in 2009.
"Economic issues are still major considerations for many households across the country," said Perazzini. "Customers who are foregoing premium channels are filling the void with video on demand, pay per view, movie rentals and time-shifted DVR content."
The 2010 U.S. Residential Television Service Satisfaction Study is based on responses from 28,489 U.S. households that evaluated their cable, satellite or telephone company-based provider. The study was fielded in four waves: November 2009 and January 2010, April 2010 and July 2010.
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, Web intelligence 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.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.
AT&T U-verse TV Ranks Highest in J.D. Power and Associates Study in Three Regions Nationwide
Customers Give AT&T U-verse High Marks for Its Offerings & Promotions
Dallas, Texas, October 06, 2010
AT&T U-verse®TV outperforms competitors in customer satisfaction among consumers in the North Central, South and West regions, according to the J.D. Power and Associates 2010 Residential Television Service Provider Satisfaction StudySMreleased today. Since its premiere on the J.D. Power and Associates rankings in 2008, this is the second time that U-verse TV has received the highest results in all three regions where it was ranked and the third year in a row that AT&T U-verse topped the South and West regions.
Customers ranked AT&T* highest in overall satisfaction in a study that evaluates performance and reliability, customer service, cost of service, billing, and offerings and promotions. The annual study measured customer satisfaction with residential TV providers, including Internet Protocol (IP) TV, cable and satellite services. In all, 28,489 video customers in the U.S. participated in the study.
AT&T U-verse outscored all competitors in the South (13 providers), West (10), and North Central (12) regions, and scored significantly higher than the industry average in each of the three regions. AT&T U-verse was not included in the East region study.
"We're seeing it in our subscriber additions and we're hearing it directly from customers: AT&T U-verse is a better entertainment experience," said Ralph de la Vega, President and CEO, AT&T Mobility and Consumer Markets. "Our focus on innovation, integrated services, and our all-IP network is what allows us to deliver high customer satisfaction. U-verse customers have come to expect that they can turn on their TV and see something new and better added to their service. We're going to keep bringing more value and innovation to U-verse TV customers, just like we've done for the past four years."
Customers gave AT&T U-verse particularly high marks in the offerings and promotions category, which looks at variety of services, programming, member incentives and communications. AT&T continues to utilize its advanced IP platform to introduce new services, apps and content that work together effortlessly, across devices, for a better experience, including:
* U-verse Mobile, which lets you manage recordings and download and watch hit TV shows on your qualifying smartphone.
* My Multiview, an exclusive app that lets you choose and watch up to four of your favorite channels at one time.
* Account Manager, a new app that lets you instantly upgrade your U-verse TV package on-screen at any time.
* U-verse YP.COM TV , an app the lets you locate and place a call to a business from your U-verse TV screen through any wireless, U-verse Voice or home phone number.
* Interactive sports applications, including the first Spanish-language TV app from U-verse TV.
* Caller ID on TV, an app that lets U-verse Voice customers view incoming calls and voicemail message indicators on their TV screen.
* U-verse Online, the expanded AT&T Entertainment website that lets you watch streaming TV shows, movies and video clips on your PC.
* Quad-play bundle offers which gives you even more savings for bundling U-verse TV, High Speed Internet, U-verse Voice and wireless services - a bundle option not available from most cable providers.
* 3D Technology Package, which includes ESPN 3D and several 3D On Demand titles.
* Enhancements to U-verse TV HD capabilities so eligible customers can now watch up to four live HD shows simultaneously and record up to three HD shows and one SD show simultaneously – a capability not offered by other TV providers.
The unique U-verse features and ongoing enhancements help to drive U-verse TV customer satisfaction - and subscriber growth. AT&T is the fastest growing TV provider, adding more TV subscribers in the first half of 2010 than any major TV provider reported. AT&T had 209,000 customers additions in the second quarter, totaling 2.5 million U-verse TV customers across 22 states. AT&T's advanced fiber network passed 25 million living units, and AT&T reported the first ever billion-dollar revenue quarter for AT&T U-verse services during the second quarter of 2010.
For additional information on AT&T U-verse - or to find out if it's available in your area - visit www.att.com/u-verse. Customers can get more information about U-verse TV programming and television events by visiting att.net/uverseonline.. Customers can get more information about U-verse TV programming and television events by visiting att.net/uverseonline.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
For Third Straight Year, Verizon's FiOS TV Ranks Highest in East Region in J.D. Power and Associates Customer Satisfaction Study
All-Digital FiOS TV Delivers a Home-Entertainment Experience Others Can't Match
News Release ShareThis
NEW YORK – October 6, 2010 –
For the third consecutive year, Verizon's FiOS TV outperforms the competition in the East, according to new research conducted by J.D. Power and Associates.
Verizon's TV service, one of the fastest-growing all-digital TV services in America, has been ranked "Highest in Residential Television Service Satisfaction in the East Region" in the J.D. Power and Associates 2010 Residential Television Service Satisfaction StudySM.
"This is a three-peat for Verizon FiOS TV," said Chris Creager, Verizon president for the East Coast region. "For three years straight, Verizon has outperformed cable in this study. FiOS TV is recognized by our customers as having the hands-down greatest picture quality, technology and features, and it's a value that others just can't match."
(Watch a video of Creager discussing the significance of Verizon's FiOS TV service by visiting this website: http://www.youtube.com/watch?v=4H8sZMzJTrw.)
The East region covers the nine states where FiOS TV is available: Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island and Virginia, as well as Washington, D.C.
In the study, J.D. Power and Associates evaluated nine TV providers, a group that included traditional cable TV companies, satellite providers and Verizon's FiOS TV.
The companies were ranked on the following factors to determine overall customer satisfaction: performance and reliability, customer service, cost of service, billing, and offerings and promotions.
Verizon's FiOS TV received five Power Circle Ratings - the top rating - in overall satisfaction, performance and reliability, and offerings and promotions. The complete J.D. Power and Associates rankings are available at http://businesscenter.jdpower.com/news/pressrelease.aspx?ID=2010166 on the market research company's consumer-facing website.
With more than 3.2 million customers, FiOS TV continues to grow throughout the country. In areas where the service is available, one out of four customers chose FiOS TV.
In addition to the J.D. Power and Associates recognition, FiOS TV is ranked No. 1 in customer satisfaction in the 2010 American Customer Satisfaction Index. FiOS TV also is ranked No. 1 in HD picture quality and overall picture quality by Change Wave Research.
Verizon's FiOS TV service offers a broad collection of all-digital programming, with more than 520 total channels, including up to 140 HD channels. FiOS TV also offers more than 18,000 video-on-demand titles each month, including 3,300 in HD. In addition, FiOS provides next-generation interactive services including an advanced interactive media guide; social networking, news and entertainment widgets; remote DVR management via broadband or cell phone; and more.
FiOS TV is delivered over Verizon's all-fiber-optic network, which brings the power and capacity of fiber optics directly to homes and businesses, with industry-leading quality and reliability. The network also delivers FiOS Digital Voice service as well as FiOS Internet, which offers downstream speeds of up to 50 Mbps (megabits per second) and industry-leading upstream speeds of up to 35 Mbps. FiOS Internet customers with service of up to 20 Mbps or faster also have access to Verizon Wi-Fi at thousands of locations across the U.S.
Verizon FiOS customers also have access to the Verizon In-Home Agent, a free application that gives them valuable tools to set up services, configure Wi-Fi links, set up and manage voice mail, auto-fix video problems, and trouble-shoot and correct Internet issues - all with simple clicks of a mouse.
For the latest news, updates and information about FiOS TV, visit www.verizon.com/newscenter and http://www.verizon.com/athomeblog.
Verizon Communications Inc. (NYSE, NASDAQ:VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, serving more than 92 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon last year generated consolidated revenues of more than $107 billion. For more information, visit www.verizon.com.