Cable TV losses ground to DSS - digital satellite systems - direct broadcast satellite television

American Demographics, August, 1997 by Nancy Ten Tate

After years of peering through snowflakes at a few channels, it's only logical to expect rural residents to be the biggest buyers of Digital Satellite Systems (DSS), which deliver hundreds of high-quality channels for a relatively affordable price. But consider this: before purchasing a DSS, 45 percent of owners received their signals through cable and only 31 percent through an outdoor antenna.

It's the best cable customers who are making the switch to satellites--52 percent of former cable subscribers had high levels of cable service, including basic, extended, and movies, according to estimates from a national survey by the Consumer Electronics Manufacturers Association (CEMA) of Arlington, Virginia. After installing DSS, 64 percent of previous cable subscribers dropped their cable service entirely, while 18 percent switched to only "basic" service.

Cable-TV providers had better scramble for a way to keep their customers. The estimated 3.5 million Digital Satellite Systems installed in 1996 meant a loss of more than 1 million cable subscribers, according to CEMA's survey.

"The primary reasons consumers are opting for DSS . . . over cable are the satellite system's superior picture and sound quality and the availability of a greater number of channels," says Gary Shapiro, president of CEMA. Ninety-two percent of survey respondents cited access to more channels and a greater variety of programming, 87 percent cited picture quality, and 69 percent cited enhanced audio capabilities as a reason for purchasing DSS. And after switching to DSS, owners weren't disappointed: 96 percent were satisfied or very satisfied with picture quality and 86 percent with sound. Fully 96 percent of DSS owners would recommend their system to a friend.

Copies of the "DSS Ownership Study" are free to CEMA members; for others, it is $225 per chapter, $200 each for three or more chapters, and $1,400 for the entire study. For more information, call Jonathan Thompson at CEMA, 2500 Wilson Boulevard, Arlington, VA 22201-3834; telephone (703) 907-7664, or e-mail eder@eia.org.