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Solomon-Wolff Research: Satellite Merger Would Make Dishnet the Undisputed Market Leader

6 Nov, 2001 By: Hive News

The two satellite TV providers -- DirecTV and Dishnetwork -- when combined, will have a market sharegreater than any cable TV company, according to a Solomon-Wolff Associates semi-annual research report that forecasts continued growth for satellite TV.

DirecTV has a share of 14% while Dishnetwork has a 9% share. The combined market share of 23% will exceed the 18% calculated for AT&T Cable, the cable TV service provider with the largest market share, the report says.

The independent New Jersey-based market research firm's findings, based on a survey conducted in July, also point to other market indicators of current and future satellite TV trends.

"The use of premium TV service, overall, has not shown much growth over the past three years, so it appears that satellite TV has taken customers directly from cable, rather than expanding the market," said S. Joey Wolff, partner, Solomon-Wolff Associates.

"DirecTV and Dishnetwork together now account for almost one out of four consumer households, and their shares grow every time we conduct a new study. Some traditional cable TV companies have shown growth, but this seems to be due to acquisitions rather than by gaining users who have not used a premium TV service before," Wolff said.

In Solomon-Wolff's latest study, 29% of satellite TV customers reported they were completely satisfied with their service, as compared to only 17% of cable customers. Wolff suggests thatsatellite will continue to be the main growth area among premium TV services.

"While satisfaction has generally declined for a number of communications services over the past three years, satisfaction with premium TV services has actually increased," Wolff said.

"Dishnetwork has the highest satisfaction level of all premium TV services, and Cablevision has the highest satisfaction level among cable TV companies."

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