Dissatisfaction with the UK’s top three digital TV providers is likely to make customers consider switching to freesat’s combination of HD programmes without subscription.
That is the conclusion of Steve Weller, communications expert at uSwitch.com, which carried out a customer satisfaction study on the UK’s top three digital TV providers – who hold 95% of the market.
Almost 9 out of 10 homes in the UK have now ‘gone digital’ and spend a total of £4.2 billion on receiving the service every year.
However, the independent price comparison and switching service found that more than 1 in 4 customers are not satisfied with their digital service.
While 73% of people surveyed were satisfied overall with their DTV provider, 27% said they were not satisfied. This equates to 6,000,418 households.
Weller said the survey of nearly 10,000 digital TV subscribers looked at the services provided by Freeview, Sky and Virgin Media.
He said that less than 1 in 2 digital TV customers (46%) are satisfied with the customer service they receive from their provider.
“Sky and Virgin will have quite a challenge on their hands convincing customers to part with their hard earned cash whilst expecting them to accept the current levels of customer service on offer,” he said.
“The availability of ‘free’ services has received a boost with the launch of freesat, a joint initiative from the BBC and ITV that promises high definition programmes without the need for an ongoing subscription.
“With a one-off cost for the set-up and a box, consumers will no doubt see these services as offering greater value for money when compared to the traditional monthly subscriptions offered by Sky and Virgin.”
On a more positive note, customers voted Sky Best Overall Provider with 76% satisfied, despite coming last for value for money (57% satisfied).
Sky customers pay an average of £31.17 per month for their digital TV service – almost double the £16.70 paid by Virgin Media customers.
Freeview won Best Value for Money award with 75% satisfied – with value for money voted the most important feature when choosing a DTV provider.
Tag: hdtv
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Freesat's mix of HDTV programmes and subscription-free service is likely to appeal to "millions" of customers unhappy with the UK's digital TV providers
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Samsung HDTV earns top slot in customer loyalty survey
Samsung Electronics has come first in a customer loyalty survey in the US for both its HDTVs and DVD players.
The company was winner in the two categories in the Loyalty Engagement Index, a nationwide survey carried out by Brand Keys Customer.
It identifies brands that are best able to engage consumers by meeting or exceeding their expectations, which creates loyal customers.
The report forecasts which products consumers are most likely to purchase over the next 12 to 18 months.
In both the HDTV (LCD) and DVD player categories, consumer preferences were based on product design and performance.
Tim Baxter, Executive Vice President of Sales and Marketing at Samsung Electronics America, said: “Winning these awards reaffirms Samsung’s dedication to provide products with a level of design and functionality that enhances any consumer’s home entertainment setup.”
Last year, Samsung won a Brand Keys Customer Loyalty Award for HDTVs (CRT), as well as honours for HDTVs and DVD players in the 2006 edition.
Robert Passikoff, President at Brand Keys, said the Samsung brand had managed to find a niche for itself, where it means something beyond just electronic equipment to the consumer.
“Customers remain loyal to brands that resonate with values and Samsung achieves this by providing products that resonate with the customer,” he said.
“A lot of brands don’t have that connection.” -
Sony commits to Tru2way TV
Sony has signed an agreement with the US’s six largest cable companies to produce a TV that will receive digital signals without the need for a set-top box.
The Japanese electronics company will make an LCD set based on the Tru2way cable platform introduced in January at CES by Comcast.
Tru2way allows interactive cable services to be integrated directly into devices without the need for set-top boxes, which are made by companies such as Motorola Inc and Cisco Systems Inc, which owns Scientific Atlanta.
The agreement is between Sony and Comcast Corp, Time Warner Cable Inc, Cox Communications Inc, Charter Communications Inc, Cablevision Systems Corp and Bright House Networks.
Between them the six companies serve more than 82 per cent of cable subscribers in the US.
The National Cable & Telecommunications Association (NCTA), which represents cable television operators in the US, said customers would still be able to attach their own devices – such as TiVo digital video recorders.
Under the new system, customers will still need to get a cable card from their provider.
The cable association said it was hopeful other electronics manufacturers would also agree to use the same technology.
Kyle McSlarrow, president of NCTA, said the Sony announcement meant they had headed off action by the US’s Federal Communications Commission to impose a two-way standard on the industry.
Cable companies and consumer electronics manufacturers have been feuding for a decade about how best to deliver cable services to customers while allowing them to buy equipment of their own choosing.
“Every member of the FCC has encouraged the parties to resolve these highly technical issues in private-sector negotiations,” said McSlarrow.
“This is a landmark agreement which will provide a national, open and interactive platform resulting in more choices of services and products for consumers.”
Sony is not the first consumer electronics company to announce a device based on the platform.
At CES, Panasonic announced two HD televisions and a portable digital video recorder that use Tru2Way.
And last month, Samsung, the world’s largest producer of HDTVs, announced its own Tru2way TV and high-definition DVR. -
Samsung continues re-structuring following management changes
Samsung’s home-theater, DVD and Blu-ray-player businesses will be merged with the TV section as part of moves to change the way it operates.
Samsung Electronics Co, the flagship company of South Korean conglomerate Samsung Group, said the re-organisation within the digital-media division was part of a wider re-structuring.
Earlier this month, the executive who led Samsung Electronics Co to the top of the global electronics industry in the past decade, Yun Jong-yong, resigned as vice chairman and chief executive.
In April, the company’s chairman left abrubtly as part of a broad management shuffle.
Lee Yoon-woo, 62, the former chief of its chip division and a vice chairman, succeeded Mr. Yun. -
Blue Ray Technologies expansion includes Hollywood plant to serve new BD and HD demand
Blue Ray Technologies is planning to open multiple Blu-Ray disc production facilities across the U.S, starting with a facility near Hollywood to be close to the indie and major studios that have now all adopted Blu-ray.
The new facilities are designed to be capable of handling the next generation of movie and game discs, Blue-ray 2.0, which gives an interactive web dimension to the consumer, and offer up to “five layers of entertainment”, according to BRT founder Erick Hansen.
Erick Hansen, founder BRT Hansen, whose Hollywood move puts him closer to the studios he has worked with for years, has also been in negotiations with the major studios through an affiliated company for downloadable high definition content over the Internet.
While being a pioneer in DVD and now championing Blu-ray discs, Hansen also believes in delivering the best in movie and game content in whatever form the consumer wants it.
With the end of the format war, and 70% of the US having bought or buying HD screens (according to Nielsen figures) there is an “overwhelming” demand now for instant products in Blu-ray. Hansen says this is the present and future in the arena.
He said this means multiple production and shipping locations are needed to serve the demand, something never done before at this end of the industry.
Especially for TV shows, ranging from major sports reality TV shows, audiences want the programmes quickly.
The company is upgrading its Spokane, WA, plant and the new facilities will be closer to Hollywood studios and networks.
“We are looking for additional facilities in Southern California for the overwhelming demand for Blu-ray,” said Hansen.
He added: “We will be looking to add additional capacity in the Mid-West and East Coast.”
BRT’s expansion plans extend beyond the US: “By the end of the year, we will be working with strategic partnerships in Europe to build a world-class global digital distribution system.” -
Consumers in emerging markets favour smaller-screen models or TV-viewing PC monitors over large flat-panel LCDs
TV screens sized 32 inches or smaller and high-definition TV-viewing PC monitors are proving to be a popular option for many price-conscious consumers in emerging markets, such as China, India and Russia.
This goes against the forecasts of LCD screen-makers who had expected premium 40-inch sets to be the biggest sellers and spent heavily in a race to build larger factories suited for larger panels.
However, it is 32-inch TVs that have proved to be the most popular model for those replacing conventional cathode-ray tubes, whose market size was around 100 million units in 2007, according to Lehman Brothers.
High-definition monitors adopting the wider TV screen format are increasingly sold for TV viewing, as new technology such as broadband TV has blurred the line between monitors and TVs.
Champ Shin, vice president in charge of TV screen sales at LG Display,
“As of now, 32-inch is almost one third of the market,” he told the Reuters Global Technology, Media and Telecoms Summit.
“Up to now most LCD makers had focused on large screens only. But the growth rate of larger screens seems to be a bit slow.
“And there’s big demand for … TVs using monitor panels or smaller TV panels.”
This has led LG Display to switch some of its TV panel capacity to computer screen production, building a new line for smaller panels and strengthening ties with Chinese TV makers.
The company anticipates that the popularity of small-size TVs will continue for the next few quarters as the US economy stutters and the Chinese TV market takes off ahead of the Olympics.
And HB Chen, CEOof Taiwan’s AU Optronics Corp, said sales of monitor panel TVs – so-called “moniTVs” – sales could more than double in 2009 to top 50 million units.
“All these monitors can still provide very good TV performance. MoniTVs are a new segment to grow,” he said.
The entry-level 15-inch models are for students or emerging market consumers, while 19-inch is becoming a mainstream in the moniTV market.
However, Nigel Lee, a fund manager at Taiwan’s National Investment Trust, said he didn’t expect the popularity of the small-size TVs to last long.
He said aggressive price-cutting by TV makers would soon spur up demand for larger sets.
“Do you want to have that (a moni-TV) in your living room? I don’t think so. Large-size TVs will still be king in the future,” he said.
A looming panel oversupply in 2009 will only help make bigger TVs affordable sooner than expected.
After an industry-wide spending curb last year, new capacity from top makers such as Samsung and LG Display is set to hit the market early next year.
Analysts expect prices of 40-inch grade TVs in the US to fall below $1,000 by the 2008 fourth quarter, boosting demand.
Jeff Kim, analyst at Hyundai Securities, said: “Forty- and 42-inch TVs, along with the 32-inch model, will become the mainstream in the global market by 2010,” he said.
The phase-out of analog broadcasting in the US in early 2009 is also expected to speed up TV replacement demand.
," Mike Splinter, CEO of Applied Materials Inc, said: “In the US, the sweet spot is quickly moving to 40 inches.
“It (TV size) is going to continue to move up for the next few generations. I don’t know where the limit is.”
Research firm iSuppli forecasts worldwide LCD TV sales volume to top 100 million this year and reach 194 million in 2012. LCD TV shipments were at 78.5 million units in 2007. -
Young adults aged between 16-27 are driving demand for HDTV, according to Motorola study
Research by Motorola shows that young adults have a huge influence on their parents’ buying decisions for HDTV sets and programming packages.
The “always-on” generation are hungry for more control over when and where they access rich content such as high-definition (HD) programming and cable TV, the study found.
The ability to time-shift with DVRs and have access to HD programming were both highly desirable features.
In fact, data from Motorola’s study demonstrates the growth opportunity for service providers in bringing these services to the so-called Millennial generation (young adults aged 16-27) who don’t already have them.
The survey of 1,000 young adults found they are not only looking for more rich media, they are also greatly influencing the buying decisions for the services and technologies in the home and on the go.
The research found that 62 per cent of Millennials have influence over which HDTV set and programming package to buy.
And 70 per cent feel their expectations and demands are far greater than their parents’ for rich media experiences (such as mobile TV or video) and on-the-go broadband access.
Eduardo Conrado, corporate vice president, global marketing and communications, Motorola Inc., said the study explores how the preferences and habits of today’s Millennials are shaping the future of content consumption.
“With the Millennial generation, connectivity is an absolute must-have, as they’ve grown up with technology and the Internet,” he said.
“Millennials are now looking to make their connectivity more personalized and take experiences from ‘primetime’ to ‘my time.’
“This study provides a clear barometer to share with our customers that shows the changes in demand and growth opportunities as these critical users continue to
Other findings were that: * 46 per cent of Millennials already have HDTV, while 43 percent indicate they would like to have it.
* 73 percent of Millennials with HDTV access “love” current HD programming, while 35 percent of those with HDTV are looking forward to having a broader selection of HD programming offered in the future. -
WealthTV's HD channels will continue to be broadcast via Intelsat's Galaxy 13 satellite
19 May 2008
WealthTV’s HD channels will continue to be broadcast via Intelsat’s Galaxy 13 satellite
WealthTV, the luxury lifestyle and entertainment network, has signed a long-term extension of its transponder service agreement with Intelsat, Ltd., the world’s leading provider of commercial satellite services.
Under the terms of the agreement, Intelsat’s Galaxy 13 satellite will continue to deliver WealthTV’s digital and high definition feeds to US cable, telco, and direct broadcast satellite (DBS) providers across North America.
Charles Herring, president of WealthTV, said Intelsat’s Galaxy fleet offered the premier high definition neighborhood for cable networks transmitting into the North American region.
“Our extension with Intelsat will let our distribution partners know that our feeds will remain available for years to come and the additional satellite capacity secured allows for future expansions,” he said.
WealthTV uplinks directly to Galaxy 13 from its headquarters and high definition production studios located in San Diego, California.
The on-site uplink of WealthTV provides direct control and avoids possible signal integrity loss associated with compression or transmission of the signal terrestrially over long distances.
Kurt Riegelman, Intelsat’s Senior Vice President, Global Sales, said WealthTV was one of Galaxy’s original HD networks when it launched its services in June 2004. He said the extension demonstrated WealthTV’s continued confidence in the Galaxy fleet as the premier HD platform.
“As high definition programming services continue to grow, the Galaxy fleet is the source for efficient, high value satellite distribution across North America,” he said.
Intelsat’s Galaxy neighborhood offers satellite transmission services for HD and standard definition programming being distributed via cable, video, and DBS providers across North America.
Located at 127 degrees west in the US cable arc, Galaxy 13 is the premier HD neighborhood, featuring many of the top HD cable programming networks in the United States. -
US cable network leads the HD revolution
Innovation and focusing on the customer is ensuring the US cable network leads the digital and high-definition revolution, according to the president and CEO of the National Cable & Telecommunications Association (NCTA).
Speaking on the eve of the 2008 Cable Show in New Orleans, Kyle McSlarrow said that in the space of a few years US viewers had gone from having just nine HD networks to more than 75 today.
“You realize that in the space of literally three years, this industry has positioned itself to lead with relentless innovation,” he said.
“Our entire industry is leading the digital and high definition revolution.”
McSlarrow said that by the time the association met next year the US would have completed the broadcasters’ digital transition.
Mr. Kyle McSlarrow He said he was confident the cable industry will have played a key role in the success of that change and added: “But we are also going through our own transition. When one considers that just a few years ago, most customers watched analog television…that there were only nine high definition networks and more than 75 today.
“That this year will see both the introduction of the tru2way platform and interactive televisions sold at retail, creating a national and open platform for innovation.”
As well as HDTV, McSlarrow pointed to the growth in broadband and digital phone services offered by NCTA’s members.
He said it was the industry’s willingness to listen to its customers and to the communities it served, to invest, to innovate, and to compete, that would drive and grow members’ businesses for years to come.
Even in the face of an uncertain economy and the most intense competition ever experienced, the cable industry was growing – and growing in a way that sets it apart.
“The value proposition we offer consumers is extraordinary and it gets better, not worse, year after year,” he said.
“Cable networks invest in better content and more high definition and consumers watch more of it.
“Cable operators invest in better platforms with faster speeds and more services, and consumers want more of it.” -
DISH Network's profits rise despite drop in subscriptions
13 May 2008
DISH Network’s profits rise despite drop in subscriptionsDISH Network’s first-quarter net income rose 65% even though new subscriber growth of its satellite television service plunged on the languishing economy and stiffer competition.
In a Securities and Exchange Commission filing, the US company also cited satellite launch delays and problems within its operations as factors that dampened growth.
The results came as DISH, the US’s second-largest satellite television provider, said it was bolstering its HDTV service with an extra 22 national HD channels.
On making the announcement, the satcaster said the additions had boosted its total HD line-up to over 95 channels.
But almost immediately it moved to axe 10 of its 15 Voom High-definition programming package, taking the actual figure to around the mid-80s.
Eric Sahl, senior vice president of Programming for DISH Network, said: “We are excited to extend our competitiveness in HD by enhancing our already comprehensive HD lineup with these 22 channels, bringing our total HD lineup to over 95 channels.
“These launches, along with other recent additions such as the New England Sports Network (NESN) HD, reinforce our commitment to offer the best in entertainment.”
The programming changes coincided with the release of figures showing a sharp decline in the network’s subscriber additions in Q1 of 2008, down 90% from the previous year.
Dish experienced low uptake figures for Q1 – 35,000 compared with 310,000 the previous year – taking total subscribers to 13.8 million,
“Subscriber growth has been affected by worsening economic conditions, including the slowdown in new housing starts as well as by operational inefficiencies at Dish Network, signal piracy and other forms of fraud,” Dish Network said in its filing.
But it still managed to report higher quarterly profit thanks to lower expenses following the spin-off of set-top box business EchoStar.
Craig Moffett, analyst at Sanford Bernstein, said the subscribers gained by other carriers during the quarter “clearly” came from DISH.
The company itself admitted that “gross net additions were likely to continue to be negatively impacted by competitive factors”, such as the expansion of FIOS TV.
A press statement was not issued on the satcaster’s decision to drop 10 Voom channels but Dish’s web site and programming lineup now lists just five Voom HD channels: Monsters, Rush, Equator, Kung Fu, and Rave.
And on Dish’s channel 9472, the following statement appears: “As of result of these additions (20 new HD channels), we removed some channels that are less popular with our customers. These channels are not available with any other satellite provider.”
The decision to reduce the number of Voom channels was not unexpected.
The Supreme Court of New York last month denied Voom’s request for a preliminary injunction to block Dish Network from terminating its agreement to carry all 15 high-def channels.
The satcaster informed Voom last year that it would move the 15 HD channels to a less watched programming tier.
Voom objected to the plan, saying it would reduce its programming fees and jeopardise its business.
Following a series of negotiations, Dish informed the programmer that it planned to terminate the agreement entirely, which led to the court battle.