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FiOS, U-Verse Subscribers Most Satisfied Pay TV Consumers
Time Warner Customers Most Vulnerable to Churn
Boston, MA - 19 February 2009 - Despite their relatively short market history, Telco IPTV providers are well-positioned, and lead in customer satisfaction and brand loyalty, according to a survey just published by analyst firm Strategy Analytics. Over 80% of Verizon FiOS and AT&T U-Verse television customers reported to be "very" or "extremely" satisfied with their provider. Cable customers, on the other hand, had the lowest satisfaction levels, with Time Warner Cable subscribers the most likely to churn if offered a compelling price discount.
The report, "Digital TV Customer Satisfaction and Propensity to Churn: US Survey Results 2H'08," polled 842 US Digital Television subscribers on the "three pillars" of customer churn: customer satisfaction levels, propensity to churn, and perceived obstacles to defecting. In today's competitive climate, customer retention must be a top priority, according to the report.
"In the context of the Triple Play, the Digital Television component leads the bundle," noted John Lee, Analyst in the Strategy Analytics Digital Consumer Practice. "It is the area with the highest potential for service differentiation and the one with the lowest fault tolerance. To mitigate churn, service providers need to pay close attention to it."
Telco IPTV providers have established themselves in the TV market with, most noticeably, an exceptional level of customer service, the report found.
"While content and service quality metrics are certainly important to customers, they are among the most difficult to improve substantively in the short-run," according to Ben Piper, author of the report and Director of the Strategy Analytics Multiplay Market Dynamics service. "Instead, service providers should concentrate first on improving customer satisfaction in the areas of Customer and Technical support."
The survey, fielded in late 2008, includes data from the top US DTV providers, including Comcast, AT&T, Verizon, Time Warner Cable, Cox, DirecTV and Dish.
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