American Customer Satisfaction Index
Satellite Providers: 'We're the best of the worst, and getting worse!'
The American Customer Satisfaction Index has been released
(also see press release
). The index gauges consumer satisfaction across a number of industries. While DirecTV
and Dish Network
issue press releases lauding their besting of cable in the rankings, they omit the fact that the TV sector still has "the lowest level of customer satisfaction among all industries,"
and that every major company in the TV sector did worse this year than last. While they don't measure broadband or include IPTV or FiOS, they do measure satisfaction with wireless phone providers and fixed line phone providers (Verizon tops both).
| I agree. When cable was $20 or even $30/month, folks were fine to pay for a better picture and more choices even though they were used to commercial TV being a free broadcast.|
However, today's $50+/month fee is getting ridiculous. Charter, my CATV provider, recently broke out a family tier and a sports tier. Each now cost $10/month more. My bill jumped by $20/month and I ditched all the channels. It's shame because along with all of the extra crap, I had to get rid of several "Discovery" series channels and kid-friendly channels (Nogin and Nick GAS). I would be more than willing to swap these channels for some of the crap I have with the standard digital package. I never watch WGN, The Game Show Network, the Speed Channel, UNI, Food, Style -- the list goes on and on.
| |JTRockvilleData HoPremium,MVM
Monopoly-like prices? You don't say! Professor Claes Fornell gave the commentary, and he actually did say monopoly-like prices. Looks like subscriber satisfaction doesn't matter much to the customers (shareholders).
said by Professor Claes Fornell :
There seems to be an element of monopoly-like pricing in the cable industry: basic cable services rose 5 percent in 2006 and 93 percent over the past decade, nearly four times the rate of overall consumer prices during the period. Such pricing power usually comes with some level of monopoly protection and most cable companies have little competition at the local level. This also means that a cable company can do well financially even though its customers are not particularly satisfied. Comcast is one of the lowest scoring companies in ACSI. As its customer satisfaction eroded by 7% over the past year, revenue increased by 12%. Net income went up by 175% and Comcast's stock price climbed nearly 50%. In the first quarter this year, Comcast added 75,000 new cable TV subscribers, a 49% increase, and posted an 80% rise in earnings over the previous first quarter.
So what ?
said by Karl Bode: And what can they do about that ?? They can only improve themselves. I guess Dish (and DirecTV) should work really hard at helping the Comcasts, Time Warners, and other cablecos at improving their service (??).
...they omit the fact that the TV sector still has "the lowest level of customer satisfaction among all industries,"