Media Coverage 2003

The Globe and Mail - July 17, 2003
Digital TV Gets Satisfied Customers
Viewers Like Bell ExpressVu Best: Survey

By RICHARD BLACKWELL

Canadian television viewers who use direct-to-home digital technology to get their signals pay marginally more than traditional analog cable subscribers, but get far more channels as a result, a new survey shows.

While DTH subscribers pay an average of about $55 a month for more than 100 channels, analog cable subscribers pay about $40 for less than half that many, according to the study from Solutions Research Group Consultants Inc. of Toronto.

Digital cable subscribers pay about $60 a month for around 90 channels.

DTH users own satellite dishes, although some use "line-of-sight" systems such as Look TV's wireless digital antennas. Cable customers get their signals over wires, although some have switched from analog to new digital services.

In addition, the study shows, DTH users are generally much more satisfied with their service than are cable subscribers.

About 53 per cent of DTH subscribers were very satisfied with their service provider, according to the survey, while 46 per cent of digital cable subscribers were very satisfied, and only 37 per cent of analog cable users fit this category.

The survey showed that Bell ExpressVu customers gave the highest customer satisfaction ratings, beating out satellite rival Star Choice and the cable companies.

Kaan Yigit, a partner in Solutions Research Group and the director of the study, said that television viewers' satisfaction is governed not just by price, but also by the quality of the signal, the perceived flexibility of packages, and how effectively their provider solves problems that crop up.

Still, he said, customers tend to feel that if they get a lot more channels for a slightly higher price, the chances are higher that they will be receiving more channels they like.

"It's not that digital offers unlimited choice, but it provides the perception that there is far more choice, or you have more control over what it is that you choose," Mr. Yigit said.

Analog cable subscribers also tend to have "baggage" from earlier hassles with the cable companies, he said, such as the controversy over "negative-option billing" that dogged the industry several years ago. That tends to drag down the satisfaction numbers.

Over all, the number of Canadian households that get their television signals in digital form has tripled in the past three years, the survey showed.

Now 34 per cent of households have DTH or digital cable services, while 50 per cent have analog cable.

Digital cable has gone from zero to 14 per cent penetration since 2000, while DTH has jumped from less than 10 per cent to 20 per cent.

The television data are from a wider survey of consumer trends in technology, media and entertainment conducted by Solutions Research Group among 1,500 Canadians earlier this year.

The study showed that households with digital television access are far more likely to have other digital services, such as personal computers, DVD players, and digital cameras.

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