Cable Operators Still Losing Customers to OTT Providers in US

US cable TV providers are failing to match user experience of leading OTT providers.
Cable operators in the US are still failing to match Internet TV players for quality of experience despite having their own multiscreen offerings, according to research commissioned by pay TV subscription, billing and CRM vendor Paywizard. Americans are being drawn to the higher level of customer service from providers like Netflix and Amazon according to the study, characterized by features like quick and easy signup, lack of contracts, free trials, instant account changes, transparent billing, and the ability to leave and return at any time.
It is clear that consumer concerns with cable TV services are more to do with inflexibility of the packages rather than quality of the content, although personalization and recommendation did emerge as factors in favor of the OTT providers. “Our research shows that Americans are placing far more value on customer service as a TV differentiator, as it becomes easier to join, cancel and move between services,” said Bhavesh Vaghela, CMO, Paywizard. “Viewers have had their fingers burnt by long-lasting and rigid cable subscriptions, and see internet TV as heralding a new era and leading the way for traditional players to follow – hence why cord-cutting and cord-shaving is gathering pace.”
Vaghela also cited helplines and guidance features as factors where the OTT players scored. “TV service providers would do well to consider just how great the impacts of proactive and personalized support functions can be in terms of securing loyalty and stopping users drifting to alternative platforms, as well as new approaches like offering skinny bundles,” he said.
The research based on consumer focus groups was carried out in New York during March 2016 by qualitative research experts Decipher, with the aim of discovering which factors motivate consumers to sign up to paid internet TV services and determine how long they stay with a service. It found that Americans are frustrated with poor customer service from cable providers that held a monopoly prior to internet TV and now desire a better, more flexible experience, which they are likely to reward with loyalty. American participants expressed opinions such as “I hate dealing with my cable company”, “it takes longer for them to get back to you” and that internet TV providers “are way better for customer service”. Conversely they praised internet TV providers for being “really responsive”, “reachable all the time”, having “different ways of getting in touch with them”, and willing to “bend over backwards to make you a satisfied customer”.
The aspects of customer service that consumers crave most from a TV service provider in 2016 are:
- Contract free commitment
- Simple, flat-rate pricing with little ambiguity
- A free trial period to test the service
- Simple and fast registration – no input of excessive personal information
- Easy sign-in
- Accessibility across devices
- Personalization and recommendation features that work
- Ability to make rapid account changes (upgrades/downgrades) onsite
- Proactive and personal support features, such as web chat and helplines
- Ability to leave at any time
- Winback offers to entice returning customers
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