October 2006

~ research reveals that digital TV services providers are losing out on potential revenue opportunities as consumers turn away from new subscriptions ~

Over 60% of consumers believe that customer service would be the deciding factor when looking to sign up to a new digital TV service.

The survey also revealed that trust is an important factor when looking to subscribe to new digital TV services. The majority of consumers (57.8%) would only trust their traditional broadcaster for their digital TV services whilst only 12.3% would trust an Internet service provider.

Furthermore, 60.5% of customers are also most likely to switch digital broadcast services providers for more competitive rates.

These are the headline findings of an independent national survey of 1,022 people 1 on their attitudes to new digital TV platforms and technologies. The research was commissioned by MGt, a digital TV support services company, as part of its 'State of the Broadcast Nation' study programme.

Moreover, over half of consumers (52.8%) believe that being kept up-to-date with latest deals and offerings that concern them specifically is the most important aspect of customer service.

"The research shows that digital TV services providers are losing out on potential revenue opportunities because they are unable to provide adequate customer service," said Jamie Mackinlay, Director of Sales and Marketing at MGt. "Customers need to know they can trust broadcast providers to offer them the most relevant service which is most suited to their needs. There are so many different digital TV services available that customer service will be the key differentiator. The bottom line is that as new services providers emerge on the market, the current providers simply can't afford to ignore customer satisfaction from both an ethical and financial perspective"

Additional findings:

• 68.2% believe that customer support is either critical or important when looking to sign up to a new digital TV service
• Consumers in the East Midlands are least concerned about customer support. Instead, they are more likely to switch service providers for more competitive rates
• More females (76%) thought that customer support was important compared to males
• Only a third of respondents would like to be kept up-to-date with all the latest deals and offerings
• Those aged 65 and over were less likely to trust an internet service provider for digital TV services whilst those in the 16-24 age group would trust their telephone company most
• Poor customer service is the second highest reason why consumers would switch digital broadcast providers (41.2%) followed by content more suited to the customer's interest (40.6%)

*** For further information about the survey or additional supporting data, please contact George Coleman or Lisa Worrall at Nelson Bostock Communications on 020 7229 4400 ***

1 The research was conducted online and by telephone by Marketing Sciences Ltd during March and April 2006