Parks Associates Blog

Wednesday, October 22, 2008

Cable TV Faces Customer Satisfaction Issues

Video-on-demand may be cable’s best bet for improving customer satisfaction with services --

Cable television could see a mass migration away from its services, according to Parks Associates' TV 2.0: The Consumer Perspective, if providers do not improve their consistently low satisfaction ratings among subscribers.

This new report reveals that subscribers to satellite television and telco/IPTV are significantly more likely to be satisfied with their services than both basic and digital cable subscribers. These market conditions leave cable carriers vulnerable to subscriber churn, and the survey recommends they quickly enhance advanced services like video-on-demand (VoD) to reverse this trend.

Cable operators have struggled in selling the value of their services and framing their services as an enhanced and convenient form of entertainment will be critical in reestablishing higher satisfaction. VoD initiatives, particularly those aimed at delivering a “Primetime, Anytime” experience, should be key elements in this effort.

TV 2.0: The Consumer Perspective is a survey of more than 2,700 U.S. and 1,000 Canadian adults in households with broadband Internet access. Key sections of this study:

  • Consumer electronics use habits, with a specific focus on how
  • Media Center PCs, TiVo set-top boxes, and game consoles are used to receive Internet video content
  • Consumer interest in new video-centric products, such as Apple TV, VUDU, and the Slingbox
  • Tracking changes in video consumption habits, focusing primarily on television and movie content
  • Internet video consumption, including popular genres, locations for Internet video viewing, and payment
  • Cable, satellite, and telco/IPTV pay-per-view and video-on-demand use and interest in video-on-demand features
  • Satisfaction with current television provider
  • Consumer interest in, willingness to pay, and potential churn trigger of 21 enhanced elevision features

To view the full press release on this report, please click here.

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