Loyalty among Live TV Streamers Much Stronger than Cable and Satellite Customers
Technology, Media, and Telecom Intelligence Report
November 2023
Loyalty among Live TV Streamers Much Stronger than Cable and Satellite Customers
No cord? No problem. At least, no loyalty problems. Even though it may be easier to switch streaming service than it is to change cable or satellite providers, customers in the United States are far more loyal to streamers than traditional television providers.
According to the latest JD Power data, the likelihood of live TV streaming customers switching services in the next year is just 12%, while the likelihood of cable and satellite customers switching is 21%.
It’s a surprising trend, given the nature of each of the platforms. While customers have traditionally shied away from switching cable/satellite providers due to service bundles and the clunky cancelation and installation processes or been leery of relying on shaky service from streamers instead of the tried-and-true platform they were accustomed to, those attitudes have shifted, thanks to the superior customer care and problem resolution that streamers are providing its users.
YouTube TV is King of Live TV Streamers
YouTube TV is now ranked best among live TV streaming customers, a huge boon to the streamer who has provided great service amid an uptick in subscribers due to some big rights acquisitions.
YouTube TV (795) improves more than any other Live TV streaming provider this year and ranked highest in Live TV streaming satisfaction to beat out Hulu + Live TV (785), and Sling TV (772).
DISH Keeps its Crown among Cable/Satellite
For a sixth consecutive year, DISH ranks highest in the cable/satellite TV–national segment with a score of 709. DIRECTV (705) ranks second.
DISH performed exceedingly well in two markets, as it ranks highest in the cable/satellite TV in both the U.S. North Central (699) and South (725) regions. Verizon Fios ranks highest in the East region, while DIRECTV ranks highest in the West region (704).
The Growing Divide
What’s driving this chasm between cable/satellite and streaming providers? A multitude of factors. The largest difference (156 points) was in the cost of service, with cable/satellite providers just not being able to compete on price with the live TV streamers. But live TV streaming providers also distinguished themselves from their cable/satellite counterparts in customer care (80 points), performance and reliability (64 points), and billing and payments (60 points).
Customer care was the area of largest year-over-year improvement for live TV streaming. Customers reported improvements across all care channels, including phone (+24 points); website (+17), and the streamer’s respective apps (+8). Hulu + Live TV has the highest customer care satisfaction score, with YouTube jumping into second thanks to a 49-point improvement. Overall, 30% of all streaming customers that contacted customer service this year, and 84% felt the provider made it somewhat or very easy to resolve their problem.
Swimming Up-Stream
In the past, cable/satellite providers may have been the beneficiaries of their status as a legacy model that had a high degree of difficulty in switching or outright canceling. But these providers can no longer rest on their laurels. The improvements made in customer care have vaulted live TV streamers to a different level in terms of satisfaction and loyalty, and the subscribers that are on the fence about switching have taken note.
Streamers have always been a more affordable choice, but there was always a trade-off in reliability and customer care. Now, with streamers succeeding in all areas, cable and satellite providers have no choice to step up their game and rise to the occasion. If they don’t, they run the very real risk of fading into the background faster than anyone anticipated.
Find Out More
This Technology, Media, and Telecom Intelligence Report is based on responses from 23,584 customers and was fielded from October 2022 through August 2023. It was authored by Carl Lepper, senior director of technology, media, and telecom intelligence at JD Power. Please contact us at the numbers below to connect with Mr. Lepper or to learn more about the underlying research.
Media Contacts
Brian Jaklitsch; East Coast; 631-584-2200; [email protected]
Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]