A significant gap in customer loyalty is emerging between live streaming services and cable/satellite providers, according to J.D. Power’s Technology, Media, and Telecom Intelligence Report.
The data reveals that only 12% of live TV streaming customers are likely to switch services in the next year, whereas the likelihood for cable and satellite customers to change providers is nearly double at 21%.
This trend is a reflection of the rising cord-cutting phenomenon observed in recent years, with viewers opting for streaming services over traditional cable providers. Streaming services are often more cost-effective and flexible alternatives to cable. The average monthly cost for live TV streaming is around $69, while cable and satellite average $113 per month.
J.D. Power’s analysis found multiple factors contributing to this growing divide. Live TV streaming services outperformed cable and satellite providers in terms of cost of service, customer care, performance and reliability, as well as billing and payments.
In a previous report, J.D. Power determined that YouTube TV had the highest customer satisfaction among streaming services, followed by Hulu + Live TV. Cable companies, on the other hand, have a notorious reputation for low customer satisfaction levels.
The report suggests that cable and satellite providers previously benefited from their “legacy model” status and the difficulty customers encountered in canceling or switching services. However, the landscape has changed, and customers now have more options available to them.
Therefore, cable and satellite providers must improve their offerings and adapt to meet the demands of the evolving market, as the risk of fading into the background looms larger than anticipated, according to J.D. Power.