Actually, it's much worse than that. The 4.034KB/s is kilobytes per second, and it's the entire transponder. The actual bitrate of the channel can be calculated from the file size and recording duration and is probably less than 2Mbits/sec.
10MBytes/57 seconds ~ 1.4Mbits/sec (!)
What remains most sad about this in my mind is that Dish Network, DIRECTV, and Bell TV all use similar bitrates and numbers of channels per transponder, yet every bit of every sample I've seen from Bell TV looks absolutely fantastic compared to the US sat providers. All of the SD video on Bell seems to be full-res (704x480) and comparable to DVD quality in appearance, much like FiOS SD quality supposedly is in the US (although FiOS uses significantly higher bitrates than Bell).
A lot of quality can easily be squeezed out MPEG-2 video at fairly low bitrates if it's handled properly. However, some companies prefer to ignore this fact in favor of pretending the standard was just introduced (even over 15 years later), the only encoders that exist only work well at high bitrates, and the only way to use lower bitrates is to resize and excessively filter the video prior to transcoding it. They're living outside of the reality of improved technology that is available today and has been for several years now. Digiblur's avatar sort of says it all. I'm sure someone around here has a similar one for DIRECTV.