Research: Customers More Satisfied With Video Streaming Than With TV Subscription Services

Customer satisfaction with video streaming services far eclipses that of subscription TV service, according to the American Customer Satisfaction Index (ACSI) 2018 Telecommunications Report.

Video streaming services debuted in this year’s telecom report with an ACSI score of 75, well above subscription TV’s score of 62, which declined 3.1% from last year.

“Video streaming services significantly outperformed subscription TV,” said David VanAmburg, managing director at the ACSI, in a statement. “Streaming services don’t have the hidden fees and six-month rates that subscription TV does, not to mention they’re cheaper and simpler. But because consumers don’t have many options when choosing a subscription TV provider, those businesses don’t see a lot of risk in customer dissatisfaction, and we’re unlikely to see dramatic changes any time soon.”

The American Customer Satisfaction Index (ACSI) measures and analyzes customer satisfaction with more than 380 companies in 46 industries and 10 economic sectors. Reported on a scale of 0 to 100, ACSI scores are based on data from interviews with roughly 250,000 customers annually. The ACSI Telecommunications Report 2018 includes data on subscription TV services, video streaming, video-on-demand, internet service providers, fixed-line and wireless telephone services, and cell phone manufacturers. It’s based on 45,292 customer surveys collected between April 19, 2017 and March 17, 2018. The full report is available for download here.

With an ACSI score of 75, video streaming services were the highest-performing telecom industry measured in the 2018 study. Netflix, Sony PlayStation Vue, and Twitch all led the pack, tying at a score of 78. Apple iTunes and the Microsoft Store took second place at 77, with YouTube Red in third at 76.

Amazon Prime Video, Google Play, Hulu, and Vudu all registered at the industry average of 75, followed by the network channel subscriptions: CBS All Access at 74, and HBO Now and Starz at 72.

Bringing up the rear were Sling TV (71), DIRECTV NOW (70), Showtime Anytime (70), and Sony Crackle (68).

Still, even Sony Crackle in last place rated higher than nearly all subscription TV services.

Video streaming services received high marks for ease of understanding the bill (80), website satisfaction (80), and call centers (75), but customers downgraded them on availability of the current season’s TV shows (71) and availability of new movie titles (69).

Customer satisfaction with subscription TV fell to 62, an 11-year low for the industry.

AT&T’s U-verse TV topped the list with a 70, one of only two scores that stayed the same instead of dropping. Verizon Fios fell 4% year over year to a 68 for second place, while DISH Network held steady at 67 for third.

In the middle of the pack, DIRECTV and Optimum both fell 6% to 64 and 62, respectively. Cox Communications shed 2% to 60, while Spectrum and Suddenlink both plunged 8% to 58.

Comcast Xfinity decreased 27% to 57, Frontier Communications dropped 7% to 56, and Mediacom placed last with a 55, down 2%.

The top-rated part of the subscription TV experience was HD picture quality, which holds steady at a score of 80. Picture quality was close behind, down 1% to 78.

While courtesy and helpfulness of store and service center staff had a relatively good score of 77, and speed of store and service center transactions received a 76, call center satisfaction continued to be the weak spot of the industry, slipping 3% to 63.

“If you look at retail, airlines, and many other industries, companies like to reward customer loyalty, offering perks or discounts for doing business with them,” said VanAmburg in a statement. “Telecom is the exact opposite. In many ways, loyalty is punished because subscription TV is focused on customer acquisition and offering the best deal to lure customers away from competitors. In the long run, that doesn’t leave customers very satisfied.”

Among video-on-demand services, AT&T’s U-verse TV took the top spot with a 74, followed by DISH Network at 73, and Verizon Fios at 72. At 70, AT&T’s DirecTV came in far below its U-verse offering, but ahead of the industry average.

Optimum led all cable companies in video-on-demand at the industry average of 68, while Cox Communications and Xfinity tied at 67, and Spectrum came in last at 64.

Video-on-demand viewers were pleased with the number of TV shows (75), current seasons (74) and variety by category (74) available. However, the availability of a past season’s shows was lacking (69) as were free on-demand content (69) and new movie titles (68). Call centers received the lowest marks (67), but call center service performed better for on-demand customers than for internet and subscription TV.

While video streaming services received much better customer satisfaction scores than subscription TV, obviously viewers still need internet access to get it. Unfortunately, internet service providers (ISPs), along with subscription TV, had the lowest customer satisfaction of all industries tracked by the ACSI.

ISPs were down 3.1% to 62, and while customers clearly weren’t satisfied with their service, more than half of Americans had only one choice for high-speed broadband. Every major ISP deteriorated this year except Xfinity, which remains unchanged.

Verizon Fios stayed in first place at 70 after a 1% dip. AT&T Internet also fell 1% for a second-place score of 68, followed by Optimum, which dropped 6% to 64.

Suddenlink and Spectrum both plummeted 8% to 61 and 60, respectively, followed by Xfinity, unchanged at 60. Mediacom placed last with a 53 after a 9% fall from last year.

Call center satisfaction, already low, fell another 3% to 59. Customers were also less satisfied with overall data transfer speed, which sank 3% to 67, and the variety of internet plans available, which fell 3% to 64. The one bright spot was courtesy and helpfulness of store and service center staff and speed of store and service center transactions, at 76 and 74, respectively, though both were down from last year.

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