Consumers far happier with streaming services than pay TV

By Jim O'Neill on Aug 26 2016 at 9:15 AM
Consumers far happier with streaming services than pay TV

An interesting report out this week from J.D. Power on the satisfaction level among users of streaming studies. The report shows that cord stackers, people who complement their cable subscriptions with streaming services like Netflix, show the highest level of satisfaction, scoring 826 on a 1,000-point scale.

The lowest level of satisfaction? 802 among cord cutters. Cord nevers score streaming services at 807 and cord shavers at 822.

On the surface, those scores from the report -- 2016 Streaming Video Satisfaction Study -- look a little disappointing… a B average.

But, compare them to pay TV in general.

In September, overall satisfaction with pay-TV providers stood at 723, up 12 points from 711 in 2014. DirecTV scored best in class at 771 (which earned it a five-star rating from Powers). Comcast (689) and Time Warner Cable (686) scored lowest and earned just two stars.

I would have grounded my sons for those grades.

The report had to be a ray of sunshine for pay-TV operators; finally, some good news around their business, even if it was more by association than for anything they’d actually done.

Original content remains a major draw for consumers who only user streaming services; 54% of cord nevers and 49% of cord cutters view original content vs. 43% of cord shavers and 41% of cord stackers.
Netflix (829) was the highest ranked streaming service, followed by Hulu, Amazon Prime Instant Video and iTunes.

The survey revealed some other data:

  • Streamers are stratified across demographics.
  • Customers who only stream are younger than those who also have TV, with 37% in the 18- to 34-year-old demo.
  • As we’ve talked about before, most cord nevers (52%) are Millennials.
  • Streamers who binge watch on streaming services – 62% of streamers do – are significantly happier (scoring 834 points) that non-bingers (799 points).
  • The more binging, the merrier; satisfaction hit 823 among those whose binged less than four hours; 841 for those whose binged 4-8 hours; and 858 among those whose binged 8 or more hours.
  • 65% stream through their TV.
  • 55% view content on a laptop/desktop computer.
  • 48% view content on a mobile device.
  • More than half (56%) of viewers use multiple devices to watch streaming video.

Stay tuned.                                                             

Follow me on Twitter @JimONeillMedia and on LinkedIn

Posted in: 


SVOD, Content, Live sports
Original content, sports to push SVOD revenue to $120B by 2022
Dec 13 2017 9:00 AM

New research posits that global revenue from subscription video on-demand (SVOD) will increase 88% to more than $120 billion in 2022, up from an estimated $64 billion this year.

The report from Juniper Research also says more than 25% of all global households will have at least one SVDO subscription in five years.

LatAM, SVOD, Mobile
Latin America seeing golden age of TV in form of SVOD
Aug 22 2017 7:30 AM

Globally, subscription video on-demand (SVOD) is on a rocket trajectory and Latin America is deeply in the mix. While Netflix, Amazon and Hulu have been the leaders of subscription video on-demand growth, an increasing array of subscription services – there are more than 100 in the U.S. and Canada alone – are seeing fast subscriber growth and adoption across demographic groups.

SVOD, Pay TV, Millennials, Cord Cutting
Q2 likely to be miserable as operators brace for big customer losses; OTT anyone?
Jul 24 2017 3:00 PM

Could second quarter pay-TV subscriber losses in the United States top 1 million, the highest figure ever? In a word, yes.

The second quarter routinely is a weak one for operators and in the current environment – remember the first quarter saw more than 800,000 subscribers cut the cord, according to Kagan – reaching one million may be an easy task.

SVOD, Operators, Netflix
Should European operators worry about cord cutting as Amazon, Netflix push deeper into their market? Absolutely
May 25 2017 8:15 AM

When the Big Two come to play in your backyard, it’s time to up your game.

Netflix and Amazon have launched a push into Europe that will likely result in some bad nights of sleep for operators, pay-TV channels and broadcasters looking themselves to do more business over the top.