Ritter Group Reviews US TV Provider Market
According to a recent Telecom Report survey with 65% of the TV subscriber base, still owns the bulk of the TV market, even though it's been slowly ticking downward over the past two years.
- (1888PressRelease) March 25, 2011 - Recent consumer surveys have revealed a shift occurring away from traditional TV viewing towards new types of online services and entertainment - a trend with worrisome long term implications for traditional TV service providers.
According to a recent Telecom Report survey with 65% of the TV subscriber base, still owns the bulk of the TV market, even though it's been slowly ticking downward over the past two years.
At the same time, Satellite providers (25%; down 1-pt) have remained relatively flat, even as the core growth story over the past two years has shifted to the fiber-optic TV service providers (11%). But what does this mean at the individual provider level?
Cable Companies
Comcast (CMCSA) (23%; down 1-pt) is still the market share leader, but has been gradually sliding for the past year. Comcast, however, shows robust returns with its stock gaining 32% this year. Time Warner (TWX) (11%; up 1-pt) remains a distant second - still stuck at the same level of a year ago. The cable companies rank at the bottom in terms of customer satisfaction - with Time Warner (11%) and Comcast (11%) tied for dead last.
Satellite Companies
DirecTV (DTV) continues to hold the market share advantage over DISH Network (DISH) each retaining around ten percent share of television subscribers.
Fiber Companies
Verizon (VZ) FiOS (5%) and AT&T (T) U-verse (3%) have been slowly gaining share since they rolled out their fiber services. Importantly, Fiber TV providers also boast a big lead when it comes to customer satisfaction levels, with an 38% of customers reporting that they were very satisfied, followed by Satellite subscribers (27% Very Satisfied) - both which remain far happier with their TV service than Cable subscribers (13% Very Satisfied).
The difference is even more evident at the company level, where Verizon continues to have the most satisfied customers (47% Very Satisfied), followed by AT&T's U-verse service (39%) and then DIRECTV (34%).
Future Share: Customer Switching
Looking ahead, we asked respondents if they planned to switch TV service providers in the next six months, and only 12% report they'll be switching.
Among this group, Price (50%) is the top reason respondents plan to switch, while Bundling of Services (10%) continues to be of lesser importance.
Customers Switching TV Service Providers
Note that DirecTV (20%; down 5-pts) maintains a two-to-one market share advantage over DISH Network (10%; down 2-pts) - but both are hitting new lows. Cable providers bring up the rear - with just 4% of switchers saying they'll sign up with Comcast (up 1-pt) and 1% for Time Warner.
Thus while cable and satellite providers still lead in terms of current share, their problems continue to grow. In comparison, fiber-optic companies are excellently positioned to be the biggest winners in terms of future market share growth.
About Ritter Group:
Ritter Group is a premier provider of seed and early stage venture capital for innovative companies. Ritter Group works tirelessly to be the best across a global market and global technology areas including Biotechnology, Clean-tech, Information technology, Telecommunications, Diagnostic technology and Medical technology. Ritter Group provides unparalleled help and trusted advice across key aspects of company building including strategy, recruiting and business development.
Press Contact:
Barbara Gould, Ritter Group Media Coordinator, press ( @ ) rittergroup dot com
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