Verizon's FiOS Is Tops in Pay Television Satisfaction Study
by Todd Spangler -- Multichannel News, 2/23/2009 2:00:00 AM
Customers of Verizon Communications' FiOS TV are happier with their service than subscribers of six other major U.S. cable, satellite and telco TV providers, according to a survey by analyst firm Strategy Analytics.
Cable customers surveyed had the lowest satisfaction levels, with Time Warner Cable subscribers the most likely to switch providers if they were offered a compelling price discount, said Strategy Analytics analyst Ben Piper.
“Telco TV providers had the highest loyalty — their customers were least likely to churn,” he said.
The survey of 842 consumers, conducted in the second half of 2008, evaluated seven TV providers: AT&T, Verizon, Comcast, Time Warner Cable, Cox Communications, DirecTV and Dish Network.
Of the FiOS TV customers surveyed, 89% were “somewhat” or “very” satisfied with their service, according to the survey, while just 1% said they were “somewhat” or “very” dissatisfied.
About 80% of AT&T U-verse TV, Dish and DirecTV customers were “somewhat” or “very” satisfied, while 72% of Comcast, 67% of Cox and 65% of Time Warner Cable customers fell into the same bucket.
The survey polled subscribers on the “three pillars” of customer churn: customer satisfaction levels, propensity to churn and perceived obstacles to defecting.
According to Piper, while satisfaction was relatively high among U.S. pay-TV subscribers, about two-thirds of those surveyed said they would be willing to switch if they were offered a 20% price break.
The research firm fielded the Web survey from August to September 2008. Only respondents self-identifying as “decision makers” were selected to complete the entire survey; respondents below the age of 20 were excluded.
Rating Video Providers
Overall satisfaction with current digital TV provider:
| Very or somewhat satisfied | Neither satisfied nor dissatisfied | Somewhat satisfied | Very satisfied | |
| AT&T U-verse TV | 10% | 10% | 33% | 47% |
| Comcast | 13% | 15% | 50% | 22% |
| Verizon FiOS TV | 1% | 11% | 41% | 48% |
| Time Warner Cable |
20% | 15% | 46% | 19% |
| Cox | 23% | 9% | 40% | 27% |
| DirecTV | 10% | 10% | 41% | 39% |
| Dish Network | 5% | 14% | 45% | 35% |
| SOURCE: Strategy Analytics | ||||
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