News

Verizon's FiOS Is Tops in Pay Television Satisfaction Study

2/21/2009 2:00 AM Eastern

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

 

March