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US cable bottom of
pay-TV satisfaction index
ubscription TV and Internet
service providers (ISPs) sink to
the bottom of the American
Customer Satisfaction Index in its
annual measure of communications
industries. According to the latest ACSI
results, ISPs drop 3.1% to an ACSI
score of 63 on a 100-point scale, while
subscription TV falls 4.4% to 65. These
industries, which include many of the
same companies, are the worst
performing among 43 tracked by the
ACSI. Meanwhile, customer
satisfaction with cell phones improves
2.6% to 78 and wireless phone service
remains at 72.
“The Internet has been a disruptor for
many industries, and subscription TV and
ISPs are no exception,” says Claes Fornell,
ACSI chairman and founder. “Over-the-top
video services, like Netflix and Hulu, threaten
S
“The Internet has been a
disruptor for many
industries, and
subscription TV and ISPs
are no exception.”
subscription TV providers and also put
pressure on ISP network infrastructure.
Customers question the value proposition of
both, as consumers pay for more than they
need in terms of subscription TV and get less
than they want in terms of Internet speeds
and reliability.”
The ACSI report includes the annual
measure of ISPs, subscription TV service,
fixed-line and wireless telephone service,
computer software and cell phones, as well as
detailed findings for the top-selling
smartphone brands available to US
consumers.
Customer satisfaction is deteriorating for
all of the largest pay-TV providers. Viewers
are much more dissatisfied with cable TV
service than fibre optic and satellite service
(60 vs. 68). Though both companies drop in
customer satisfaction, DirecTV (-4%) and
AT&T (-3%) are tied for the lead with ACSI
scores of 69. Verizon Communications FiOS
(68) and DISH Network (67) follow. DISH
Network may be the lowest-scoring satellite
TV company, but it is better than the topscoring cable company, Cox Communications
(-3% to 63).
Cable giants Comcast and Time Warner
Cable have the most dissatisfied customers.
Comcast falls 5% to 60, while Time Warner
18 ADVANCED TELEVISION
registers the biggest loss and plunges 7% to
56, its lowest score to date.
“Comcast and Time Warner assert their
proposed merger will not reduce competition
because there is little overlap in their service
territories,” says David VanAmburg, ACSI
Director. “Still, it’s a concern whenever two
poor-performing service providers combine
operations. ACSI data consistently show that
mergers in service industries usually result in
lower customer satisfaction, at least in the
short term. It’s hard to see how combining
two negatives will be a positive for
consumers.”
The report also found that Internet
Service Providers' ratings are at rock bottom
without much incentive to improve. High
prices, slow data transmission and unreliable
service drag satisfaction to record lows, as
customers have few alternatives beyond the
largest Internet service providers.
At an ACSI score of 71,Verizon’s FiOS
Internet service continues to lead the
category, surpassing AT&T, CenturyLink and
the aggregate of other smaller broadband
providers, all at 65. Cable-companycontrolled ISPs languish at the bottom of the
rankings again. Cox Communications is the
best of these and stays above the industry
average despite a 6% fall to 64. Customers
rat H