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.                                                             

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