I Want my TV: Streamers Love the Best of Both Worlds

by | 3 minute read

Over­all sat­is­fac­tion with paid stream­ing video ser­vice is high­est among cord stack­ers — cus­tomers who sub­scribe to a tra­di­tion­al cable/satellite ser­vice in addi­tion to stream­ing video ser­vice — accord­ing to the J.D. Pow­er 2016 Stream­ing Video Sat­is­fac­tion Study.

The inau­gur­al study mea­sures over­all sat­is­fac­tion among cus­tomers who have used a sub­scrip­tion- or trans­ac­tion-based stream­ing video ser­vice with­in the past six months. The study mea­sures cus­tomer sat­is­fac­tion by exam­in­ing six key mea­sures (list­ed in order of impor­tance): per­for­mance and reli­a­bil­i­ty; con­tent; cost of ser­vice; ease of use; com­mu­ni­ca­tion; and cus­tomer ser­vice. Scores for each mea­sure are reflect­ed in an index based on a 1,000-point scale.

The study finds that although the num­ber of cus­tomers who cut the cord on pay TV is grow­ing, the major­i­ty of stream­ing video cus­tomers still pur­chase a paid TV ser­vice in addi­tion to a stream­ing video ser­vice. Three-fifths (60%) of stream­ing cus­tomers are cord stack­ers; 23% are cord shavers (those who still sub­scribe to TV but have down­grad­ed their ser­vice pack­age); 13% are cord cut­ters (those who have recent­ly can­celed TV ser­vice); and 4% are cord nev­ers (those who have nev­er sub­scribed to pay TV and only sub­scribe to stream­ing video ser­vice).

Con­sumers like to have it all – and they like to have it their way. Cus­tomiza­tion is the key to pro­gram­ming these days. Pick-and-choose pack­ages should be pro­mot­ed to Stream­ing Video Ser­vice Sub­scribers. The Audi­enceS­CAN study found 39.2% of Stream­ing Video Ser­vice Sub­scribers get most of their tele­vi­sion pro­gram­ming from cable sub­scrip­tions.

Fol­low­ing are some of the study’s key find­ings:

Sat­is­fac­tion Low­est among Cord Cut­ters: Over­all sat­is­fac­tion is low­est among cord cut­ters (802), fol­lowed close­ly by cord nev­ers (807), while sat­is­fac­tion is high­est among cord stack­ers (826) and cord shavers (822). Sat­is­fac­tion in all mea­sures is low­er among cus­tomers who do not have cable/satellite TV than among those who do, with an espe­cial­ly wide gap between the two seg­ments in the con­tent mea­sure (40 points).

Local satel­lite deal­ers and installers can pro­mote sat­is­fac­tion lev­els among stream­ers. The Audi­enceS­CAN sur­vey revealed 25.1% of Stream­ing Video Ser­vice Sub­scribers get most of their tele­vi­sion pro­gram­ming from satel­lite sub­scrip­tions (like DirecTV or DISH Net­work).

Binge-Watch­ing High: Near­ly two-thirds (62%) of cus­tomers use a stream­ing ser­vice to binge watch—the act of watch­ing mul­ti­ple episodes in succession—TV pro­gram­ming. Over­all sat­is­fac­tion is 35 points high­er among those who binge watch vs. those who do not (834 vs. 799, respec­tive­ly). As binge-watch­ing ses­sions increase in dura­tion, so does over­all sat­is­fac­tion: 823 among those whose most recent ses­sion last­ed less than four hours; 841 among those whose ses­sion last­ed 4–8 hours; and 858 among those whose ses­sion last­ed 8 or more hours.

Orig­i­nal Con­tent View­er­ship High­er among Stream­ing-Only Sub­scribers: More than half (54%) of cord nev­ers and 49% of cord cut­ters view orig­i­nal con­tent vs. 43% of cord shavers and 41% of cord stack­ers.

Stream­ers WILL see tele­vi­sion spots! 66% of Stream­ing Video Ser­vice Sub­scribers took action after watch­ing TV com­mer­cials in the past year, accord­ing to Audi­enceS­CAN sur­vey results.

The stream­ing video cus­tomer expe­ri­ence appears to be strat­i­fy­ing across the dif­fer­ent sub­scriber seg­ments, with pay TV ser­vice still hav­ing a major effect on the over­all stream­ing video expe­ri­ence,” said Kirk Par­sons, senior direc­tor and tech­nol­o­gy, media & tele­com prac­tice leader at J.D. Pow­er. “Part of the rea­son is demo­graph­ics. Cus­tomers who only stream are younger than those who also have TV. Near­ly two-fifths (37%) of cus­tomers who only stream are 18–34 years old, com­pared with 30% of those who also have TV. Notably, 52% of cord nev­ers are 18–34. Also, stream­ing-only cus­tomers are less like­ly to use trans­ac­tion-based stream­ing ser­vices, which per­form high­er in the con­tent mea­sure.”

Audi­enceS­CAN data is avail­able as part of a sub­scrip­tion to AdMall for Agen­cies, or with the Sales­Fu­el API. Media com­pa­nies can access Audi­enceS­CAN data through the Audi­enceS­CAN Reports in AdMall.

Courtney Huckabay
Court­ney is the Edi­tor for Sales­Fu­el Today. She ana­lyzes sec­ondary cus­tomer research and our pri­ma­ry Audi­enceS­CAN research. Court­ney is a grad­u­ate of Mid­dle Ten­nessee State Uni­ver­si­ty.