Study Shows Disney, Netflix Continue To Dominate Traditional TV In Customer Satisfaction
from the give-them-what-they-want dept
There’s just something about terrible customer service, high prices, and sketchy product that consumers oddly don’t like. American consumers’ dislike of traditional cable TV providers was once again made clear this week in a new study by the American Consumer Satisfaction Index, which tracks US consumer approval of companies on a 100 point scale. As has long been the case, the full report shows most traditional cable TV, satellite, or IPTV providers languishing somewhere in the mid 60s — scores that are bested by a long line of industries and government agencies (including the IRS).
While the report shows that streaming did drop 2.6% to a score of 74 (thanks in part to COVID-era network strain and demand), that’s still significantly better that most broadband and cable TV ratings, which remain mired in the 50s and 60s:
Compare that to streaming, which provides consumers with cheaper service, greater flexibility, and better customer service:
The cable industry was already struggling in early 2020, when a record number of cable customers “cut the cord” and flocked to over the air or streaming alternatives. That was before a pandemic came to town. But with live sports less consistent and folks desperate to cut costs as they struggled to pay rent, the trend simply exploded in the second half of last year. The number of folks still paying for traditional cable has now dropped more than 22.8% from pay TV’s peak back in 2014. But by the end of 2024, analysts expect that fewer than half of US homes will subscribe to a traditional pay TV service.
One survey predicts that 27 percent of US households are planning to cut cable TV from their budgets this year. That’s quite an explosion for a trend that cable and broadcast executives have spent a decade pretending wasn’t actually happening (it was), wasn’t a big deal (it was), was only something poor losers do (studies repeatedly proved this claim false) or would rebound once Millennials began seriously procreating (that didn’t happen).
It’s an ongoing lesson for the oodles of cable and broadcast executives who have been wrong about this phenomenon. For giant telecom incumbents their only saving grace is the fact that their monopolies over broadband access in many markets means the bloodshed isn’t quite as bad as it otherwise would be, as they can simply extract their pound of flesh via price hikes on your broadband bill.