Digital TV consumers not satisfied

With the switchover now comfortably under way, consumers are fully embracing the concept of ‘going digital'. Almost 9 out of 10 homes (87%) now have digital TV - a rise of 14% since 2007. Yet a new study by independent price comparison and switching service, uSwitch.com, of nearly 10,000 digital TV customers, paints a far from rosy picture. Despite forking out more than £4 billion a year for their service, over a quarter of customers (6 million) are not satisfied with their digital TV company.

Nearly 3 million new homes have taken up digital TV over the last year, and the uSwitch report reveals that it is no longer a luxury confined to the living room. 10 million homes (45%) now watch digital TV on more than 1 set resulting in over 37 million digitally-enabled TV sets in the UK today. But despite the increased take up, just three companies account for 95% of the digital TV market: Freeview (43%), Sky (37%) and Virgin Media (15%).

Best Overall Provider

Sky has been voted number 1 by its customers for best overall satisfaction. 76% of its customers are satisfied with its service overall. Sky was the first digital pay-TV service in the UK and accounts for over a third (37%) of the market - with over 8 million subscribers.

Yet despite winning the top award for overall satisfaction, Sky's customers have voted it last for value for money. Its 57% score in this category leaves 3.6 million customers undecided or dissatisfied with the value for money they receive from their service. Tellingly, 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.

Best Value for Money

Freeview is the undisputed winner of the best value for money award. Three quarters (75%) of its customers are satisfied with the value they receive from their service. With boxes now available from less than £20 and no monthly service charge, this is hardly surprising.

However, while consumers said that value for money was the most important feature when choosing a digital TV provider, Freeview is unfortunately only available to 73% of homes. It is hoped that Freeview will work harder to extend its availability to enable more consumers to take advantage of this cost-effective service well before the switchover completes in 2012.

Virgin Media comes second to Freeview in the value for money category with almost two thirds (66%) of its customers satisfied. However, Virgin is voted bottom for overall satisfaction - over 1 million of its customers (32%) are not satisfied. With significant re-organisation taking place within the company over the last 12 months, it is possible that its focus may have slipped away from its customer service. All eyes will be on the new CEO to bring the company back on track in winning back the hearts and minds of its subscribers.

Best Customer Service

The most shocking results of the uSwitch.com Customer Satisfaction Report are seen in the customer service category. Unsurprisingly since Freeview customers do not pay a monthly fee, Sky and Virgin Media top this category. Yet both companies score a meagre 59%, meaning that between them, nearly 5 million customers are not satisfied with the customer service levels they receive. Overall, less than 1 in 2 digital TV customers (46%) are satisfied with the customer service they receive from their provider.

Steve Weller, communications expert at www.uSwitch.com comments: "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.

"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.

"Cash-strapped customers are also likely to be enticed by the television content delivered via broadband that is often free, with services such as the BBC and 4oD not to mention the much trumpeted Project Kangaroo, a joint initiative from the BBC, ITV and C4 set to launch later this year.

"In the meantime, customers wishing to receive a better deal from Sky and Virgin should look towards their bundled services where they will see discounts on home phone and broadband when they take up their TV service."