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Americans Love Streaming TV Services but Can’t Give Up ‘Destination Television,’ J.D. Power Finds Over-the-Top Streaming Services Gain in Customer Satisfaction, but Regularly Scheduled Program Viewing Continues to Rise COSTA MESA, Calif.: 28 Sept. 2017 — Pay-TV subscribers in the United States are growing increasingly satisfied with over-the-top streaming TV services vs. traditional cable TV, but they also are spending nearly an hour more a week watching regularly scheduled television programming than they did two years ago. That increasingly complex consumer relationship with streaming and cable television is explored in detail in a trio of J.D. Power studies released today. The related studies are the J.D. Power 2017 U.S. Residential Television Service Provider Satisfaction Study SM ; the J.D. Power 2017 U.S. Residential Internet Service Provider Satisfaction Study SM ; and the J.D. Power 2017 U.S. Residential Telephone Service Provider Satisfaction Study. SM “Although it seems like the world is consumed with idea of cord-cutting in the wake of Hulu’s first Emmy and the proliferation of new shows on Netflix and Amazon, the number of current pay-TV customers who plan to cut the cord has actually declined, and the number of hours spent watching old-fashioned, time-slot television is growing,” said Peter Cunningham, Technology, Media, and Telecommunications Practice Lead at J.D. Power. “We’re seeing a trend toward the co-existence of traditional and alternative service providers, with each offering some lessons to the other on how best to drive an increase in customer satisfaction.” Following are some of the key findings of the study: Streaming services make gains as traditional TV declines: Customer satisfaction with the overall streaming video service experience (7.91 on a 10-point scale) and performance and reliability (7.97) has slightly improved year over year. Conversely, overall satisfaction with traditional pay-TV services has fallen to 710 this year (on a 1,000-point scale) from 724 last year. Destination TV viewing reaches three-year high: Despite growing satisfaction with streaming video services and widespread use of DVR and video on-demand, the number of hours spent watching regularly scheduled television programs has increased by nearly an hour between 2015 and 2017. In a typical week, households have spent an average of 17.4 hours watching regularly schedule programming this year, up from 16.6 in 2015. Percentage of likely cord-cutters declines slightly: The percentage of customers who say they plan to cut the cord on pay-TV during the next 12 months has declined to 8% this year from 9% in 2016. Mobile app adoption low, but satisfaction high among early adopters: Nearly two-thirds (65%) of pay-TV customers never watch content from their provider via mobile app, and only 6% say they

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Americans Love Streaming TV Services but Can’t Give Up ‘Destination Television,’ J.D. Power Finds Over-the-Top Streaming Services Gain in Customer Satisfaction, but Regularly Scheduled Program Viewing Continues to Rise COSTA MESA, Calif.: 28 Sept. 2017 — Pay-TV subscribers in the United States are growing increasingly satisfied with over-the-top streaming TV services vs. traditional cable TV, but they also are spending nearly an hour more a week watching regularly scheduled television programming than they did two years ago. That increasingly complex consumer relationship with streaming and cable television is explored in detail in a trio of J.D. Power studies released today. The related studies are the J.D. Power 2017 U.S. Residential Television Service Provider Satisfaction StudySM; the J.D. Power 2017 U.S. Residential Internet Service Provider Satisfaction StudySM; and the J.D. Power 2017 U.S. Residential Telephone Service Provider Satisfaction Study.SM

“Although it seems like the world is consumed with idea of cord-cutting in the wake of Hulu’s first Emmy and the proliferation of new shows on Netflix and Amazon, the number of current pay-TV customers who plan to cut the cord has actually declined, and the number of hours spent watching old-fashioned, time-slot television is growing,” said Peter Cunningham, Technology, Media, and Telecommunications Practice Lead at J.D. Power. “We’re seeing a trend toward the co-existence of traditional and alternative service providers, with each offering some lessons to the other on how best to drive an increase in customer satisfaction.” Following are some of the key findings of the study:

Streaming services make gains as traditional TV declines: Customer satisfaction with the overall streaming video service experience (7.91 on a 10-point scale) and performance and reliability (7.97) has slightly improved year over year. Conversely, overall satisfaction with traditional pay-TV services has fallen to 710 this year (on a 1,000-point scale) from 724 last year.

Destination TV viewing reaches three-year high: Despite growing satisfaction with streaming

video services and widespread use of DVR and video on-demand, the number of hours spent watching regularly scheduled television programs has increased by nearly an hour between 2015 and 2017. In a typical week, households have spent an average of 17.4 hours watching regularly schedule programming this year, up from 16.6 in 2015.

Percentage of likely cord-cutters declines slightly: The percentage of customers who say they

plan to cut the cord on pay-TV during the next 12 months has declined to 8% this year from 9% in 2016.

Mobile app adoption low, but satisfaction high among early adopters: Nearly two-thirds (65%)

of pay-TV customers never watch content from their provider via mobile app, and only 6% say they

watch via mobile on a daily basis. However, overall satisfaction with pay-TV providers increases as the frequency that customers use a mobile app to watch their provider’s content increases.

Billing errors present challenge and opportunity: Though the incidence of billing errors has

steadily decreased over the past five years, hidden fees continue to be the most common billing error by a large margin. Provider efforts to address this have paid off. Billing satisfaction among customers who experienced a billing error and are given an automatic credit or refund slightly exceeds that among customers who did not experience any billing errors (768 vs. 760, respectively).

Provider Rankings Residential Internet Service Provider Satisfaction Study

Verizon ranks highest in the East region (737); AT&T/DIRECTV ranks highest in the North Central region (699); Charter Spectrum ranks highest in the South region (717); and Cox Communications ranks highest in the West region (706).

Residential Telephone Service Provider Satisfaction Study

Verizon ranks highest in the East region (757); AT&T/DIRECTV ranks highest in the North Central region (733) and South region (742); and Cox Communications ranks highest in the West region (734).

Residential Television Service Provider Satisfaction Study

AT&T/DIRECTV performs highest in overall satisfaction in the national segment with a score of 731. Due to small market share, Verizon was not eligible for the national segment but does rank highest in the East region (755). DISH Network ranks highest in the North Central region (722) and South region (740). AT&T/DIRECTV ranks highest in the West region (726).

The annual wireline studies, now in their 16th year, evaluate residential customers’ experiences with TV, internet and phone services in four geographical regions: East, South, North Central and West. The ISP and telephone studies measure customer satisfaction across five factors: network performance and reliability; cost of service; billing; communication; and customer service. The TV study measures satisfaction in those same five factors plus a sixth: programming. The 2017 U.S. wireline studies are based on responses from 27,415 customers nationwide who evaluated their cable/satellite TV, high-speed internet and telephone service providers. The studies were fielded in four waves: November 2016, January-February 2017, April-May 2017 and July 2017. For more information about the 2017 U.S. wireline studies, visit http://www.jdpower.com/resource/us-residential-internet-service-provider-customer-satisfaction-study, http://www.jdpower.com/resource/jd-power-residential-telephone-customer-satisfaction-study or http://www.jdpower.com/resource/us-residential-television-customer-satisfaction-study. See the online press release at http://www.jdpower.com/pr-id/2017168. J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability.

Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Media Relations Contacts Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected] John Roderick; St. James, N.Y.; 631-584-2200; [email protected] About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

# # # NOTE: Fourteen charts follow.

737

695

688

679

679

660

619

0 200 400 600 800 1000

Verizon

East Average

Optimum

Comcast (XFINITY)

Cox Communications

Charter Spectrum

Frontier Communications

J.D. Power2017 U.S. Residential Internet Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingEast Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Internet Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the East Region are Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

699

674

669

668

644

639

625

0 200 400 600 800 1000

AT&T/DIRECTV

North Central Average

Comcast (XFINITY)

Charter Spectrum

WOW! (Wide Open West)

CenturyLink

Frontier Communications

J.D. Power2017 U.S. Residential Internet Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingNorth Central Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Internet Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the North Central Region are Illinois, Indiana, Michigan, Ohio and Wisconsin

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

717

714

699

697

697

690

678

675

635

624

0 200 400 600 800 1000

Charter Spectrum

AT&T/DIRECTV

South Average

Cox Communications

Suddenlink

Comcast (XFINITY)

Cable One

CenturyLink

Frontier Communications

Windstream

J.D. Power2017 U.S. Residential Internet Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingSouth Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Internet Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the South Region are Alabama, Arkansas, Florida, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee and Texas

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

706

697

680

679

673

650

624

619

0 200 400 600 800 1000

Cox Communications

AT&T/DIRECTV

Charter Spectrum

Comcast (XFINITY)

West Average

CenturyLink

Frontier Communications

Mediacom Communications

J.D. Power2017 U.S. Residential Internet Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingWest Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Internet Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the West Region are Arizona, California, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

757

726

713

704

703

689

680

679

0 200 400 600 800 1000

Verizon

East Average

Cox Communications

Optimum

Comcast (XFINITY)

Charter Spectrum

Frontier Communications

FairPoint Communications

J.D. Power2017 U.S. Residential Telephone Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingEast Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Telephone Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the East Region are Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

733

712

701

696

692

671

657

0 200 400 600 800 1000

AT&T/DIRECTV

North Central Average

Charter Spectrum

Comcast (XFINITY)

CenturyLink

Frontier Communications

WOW! (Wide Open West)

J.D. Power2017 U.S. Residential Telephone Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingNorth Central Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Telephone Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the North Central Region are Illinois, Indiana, Michigan, Ohio and Wisconsin

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

742

740

723

716

715

713

668

661

0 200 400 600 800 1000

AT&T/DIRECTV

Charter Spectrum

South Average

CenturyLink

Cox Communications

Comcast (XFINITY)

Windstream

Frontier Communications

J.D. Power2017 U.S. Residential Telephone Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingSouth Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Telephone Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the South Region are Alabama, Arkansas, Florida, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee and Texas

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

734

733

707

707

706

698

662

0 200 400 600 800 1000

Cox Communications

AT&T/DIRECTV

Charter Spectrum

West Average

Comcast (XFINITY)

CenturyLink

Frontier Communications

J.D. Power2017 U.S. Residential Telephone Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingWest Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Telephone Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the West Region are Arizona, California, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

755

740

737

711

693

692

690

665

0 200 400 600 800 1000

Verizon

DISH Network

AT&T/DIRECTV

East Average

Optimum

Comcast (XFINITY)

Cox Communications

Charter Spectrum

J.D. Power2017 U.S. Residential Television Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingEast Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Television Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the East Region are Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

722

721

695

685

671

633

0 200 400 600 800 1000

DISH Network

AT&T/DIRECTV

North Central Average

Comcast (XFINITY)

Charter Spectrum

WOW! (Wide Open West)

J.D. Power2017 U.S. Residential Television Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingNorth Central Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Television Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the North Central Region are Illinois, Indiana, Michigan, Ohio and Wisconsin

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

740

736

726

722

718

708

702

700

653

0 200 400 600 800 1000

DISH Network

AT&T/DIRECTV

CenturyLink

South Average

Charter Spectrum

Suddenlink

Cox Communications

Comcast (XFINITY)

Frontier Communications

J.D. Power2017 U.S. Residential Television Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingSouth Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Television Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the South Region are Alabama, Arkansas, Florida, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee and Texas

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

726

718

718

699

690

684

659

624

624

0 200 400 600 800 1000

AT&T/DIRECTV

Cox Communications

DISH Network

West Average

Charter Spectrum

Comcast (XFINITY)

CenturyLink

Frontier Communications

Mediacom Communications

J.D. Power2017 U.S. Residential Television Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingWest Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Television Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the West Region are Arizona, California, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

731

730

710

694

690

0 200 400 600 800 1000

AT&T/DIRECTV

DISH Network

National Average

Charter Spectrum

Comcast (XFINITY)

J.D. Power2017 U.S. Residential Television Service Provider Satisfaction

StudySM

Overall Customer Satisfaction Index RankingNational

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Source: J.D. Power 2017 U.S. Residential Television Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: Included in the average but not ranked due to insufficient market share in one or more regions are CenturyLink, Cox Communications, Frontier Communications, Mediacom Communications, Optimum, Suddenlink, Verizon and WOW! (Wide Open West)

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

J.D. Power 2017 U.S. Residential Internet Service Provider Satisfaction StudySM;

J.D. Power 2017 U.S. Residential Telephone Service Provider Satisfaction StudySM;

J.D. Power 2017 U.S. Residential Television Service Provider Satisfaction StudySM

Award-Eligible Wireline Providers Included in the Studies

Sources: J.D. Power 2017 U.S. Residential Internet Service Provider Satisfaction StudySM;J.D. Power 2017 U.S. Residential Telephone Service Provider Satisfaction StudySM;J.D. Power 2017 U.S. Residential Television Service Provider Satisfaction StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Company Name CEO Name Company Location

AT&T/DIRECTV Randall Stephenson Dallas, Texas

Cable One Julie Laulis Phoenix, Ariz.

CenturyLink Glen Post III Monroe, La.

Charter Spectrum Tom Rutledge Stamford, Conn.

Comcast (XFINITY) David N. Watson Philadelphia, Pa.

Cox Communications Alexander C. Taylor Atlanta, Ga.

DISH Network Charlie Ergen Englewood, Colo.

FairPoint Communications Bob Udell Charlotte, N.C.

Frontier Communications Daniel J. McCarthy Norwalk, Conn.

Mediacom Communications Rocco B. Commisso Mediacom Park, N.Y.

Optimum Dexter Goei Bethpage, N.Y.

Suddenlink Dexter Goei Bethpage, N.Y.

Verizon Lowell McAdam New York City, N.Y.

Windstream Anthony W. Thomas Little Rock, Ark.

WOW! (Wide Open West) Steven Cochran Englewood, Colo.