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Solomon-Wolff Survey: Time-Warner Is Still Leading Cable TV Service Provider

25 Jun, 2001 By: Hive News

Time Warner is the cable TVservice with the largest percentage of customers, according to Solomon-Wolff Associates, an independent New Jersey-based market research firm.

In January 2001, according to research, 14.4% of households who use cable or satellite TV report that they use Time Warner Cable. This is down slightly from the 15.5% of households it commanded in January 2000.

"While Time-Warner continues to have the largest share ofhouseholds, the survey findings indicate that satellite televisioncontinues to grow," said S. Joey Wolff, partner, Solomon-Wolff Associates. "DirecTV and Dishnetwork together account for over 21% of customers, and their share grows every time we conduct anew study.

"Traditional cable TV companies have a local market monopoly in each franchise area and this lack of competition seems to have leftthem unprepared for the competition that satellite TV represents," Wolff said.

According to Wolff, 28% of satellite television customersreported they were completely satisfied, as compared to only 18% of cable customers. This is surprising, Wolff said, because satellite TVcustomers spend an average of $50.51 per month as compared to cable TV customers who spend an average of $42.65. The two companies leading incustomer satisfaction among all cable and satellite TV services were the two major satellite TV companies, DirecTV and DishNetwork.

"While satisfaction has generally declined for a number of communications services over the past three years, our data shows thatcustomer loyalty is directly related to satisfaction," said Wolff.

"Those individual companies which have lower satisfaction levels are experiencing more problems with customers switching to competitors.This is especially true in those communications services which have operated as monopolies."

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