With the rise of over-the-top providers like HBO Go and Netflix, and increased competition from satellite and fiber providers, cable companies have been struggling to keep up in recent years.
In a new survey gauging customer satisfaction, subscriber TV companies such as Comcast and Time Warner Cable took a nose dive. The industry as a whole ranked dead last among 43 industries. The American Customer Satisfaction Index shows a 10% loss in satisfaction for Comcast customers, while Time Warner Cable lost 9%, putting them in last place.
The report suggests the recent failed merger between the two companies has led to lower customer satisfaction scores.
“Cable companies are trying to strengthen their positions through consolidation, but the benefits to consumers of one coaxial cable company absorbing another are questionable,” says David VanAmburg, ACSI director.
However, VanAmburg believes that the recent AT&T-DirectTV merger may be different because it would “allow AT&T to deliver TV service via multiple technologies.”
Of all the subscriber TV providers, Verizon FiOS gained the most, jumping four percentage points to take the lead from AT&T and DirectTV.
The report also shows that people are not very happy with their Internet service providers. A lack of choice is believed to be the problem. According to the ACSI, 61% of households in the U.S. have access to just one or no high-speed Internet provider.
ISPs and subscription TV providers tied for dead last among 43 industries. “Customers are frustrated with unreliable service, slow broadband Internet speeds and rising subscription prices – and they resent being locked into service contracts,” the report says.
In spite of its low score as a subscriber TV service, Time Warner Cable did make gains as an ISP, rising 7%. AT&T U-verse was the only other ISP to make gains, climbing six points. Comcast dropped two percentage points to land in the last place slot.
Other key findings include:
- Customers are happiest with no-contract wireless carriers.
- Smartphone adoption has driven the cellphone manufacturing industry to an all-time high. Apple and Samsung tied for best overall satisfaction in this category.
- The computer software industry is down 2.6%. Microsoft remains No. 1 despite a lack of traction in the mobile device and tablet industry.
- Fixed phone service is dying. Forty-four percent of homes now have no fixed-line telephone service.
The ACSI uses data from around 70,000 customers of more than 300 companies in 43 industries.
