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ISPs Score Lowest, Video Providers Second from Last, in Satisfaction Survey

TMCnet Feature

May 20, 2014

ISPs Score Lowest, Video Providers Second from Last, in Satisfaction Survey

By Gary Kim
Contributing Editor

Internet access service is the lowest ranked industry—last out of 43 industries—in the most-recent American Customer Satisfaction Index. Just above it—at position 42—is consumer satisfaction with video subscription services.

Video service scores a 65 on the ACSI scale. Internet service, which is provided by many of the same companies that provide video service, scores a 63 on the ACSI scale.

By way of comparison, mobile service got an ACSI score of 72. Fixed voice service scored 73.

Industries ranked between 85 at top and 63 on the bottom.

Customer satisfaction with linear video subscription television service has been challenged for so long it no longer is any surprise that the industry ranks near the bottom in terms of satisfaction for a wide range of products.

But the availability of Netflix and other over the top alternatives likely is increasing dissatisfaction.

According to the American Customer Satisfaction Index, industry satisfaction scores fell 4.4 percent to an ACSI score of 65 after peaking at 68 in 2013.

But ISPs fared even worse, ranked last among all 43 industries tracked. Higher subscription prices, unreliable service, and slow speeds continue to pull ISP customer satisfaction down, ACSI says.

Verizon FiOS earned the highest satisfaction score among ISPs, scoring 71. Time Warner (News - Alert) Cable scored lowest at 54. Comcast scored 57, while AT&T earned a 65.

To the extent that satisfaction ratings are correlated with “customer acquisition, retention and churn,” extremely-low ISP satisfaction ratings would seem to open up an opportunity for ISPs able to outperform the rest of the industry.

The same might be true in the video subscription business. DirecTV (News - Alert) and AT&T U-Verse scored 69, Comcast scored 60 and Time Warner Cable ranked lowest at 56.

And though AT&T is facing some skepticism about the wisdom of its bid to buy DirecTV, customer satisfaction with fiber or satellite services is eight points higher than cable (68 compared with 60). Note that DirecTV and AT&T (News - Alert) scored highest in terms of satisfaction with video providers.

Edited by Maurice Nagle

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