What does the future of cord cutting look like in the Canadian pay TV market? Research just released by J.D. Power indicates that a major concern for the industry there are the high scores customers give OTT video services as compared to those pulled in by traditional pay TV providers, and that could lead to subscriber defections.
Analysis from the “J.D. Power 2017 Canadian Television Provider Customer Satisfaction Study” and “J.D. Power 2017 Canadian Internet Service Provider Customer Satisfaction Study” indicates more than one-fourth of Canadian cable and satellite TV subs could potentially cut the cord soon. More specifically, the studies report 27 percent of subscribers saying they are either unsure or plan to drop (19 percent and 8 percent, respectively) their pay TV service within the next 12 months. That leaves 73 percent of respondents reporting they plan to keep their cable or satellite TV service.
“While our data does not signify a mass exodus over the short term, TV subscribers are increasingly experimenting with − and liking − alternative streaming video options,” Adrian Chung, director at J.D. Power, says. “The biggest concern for the cable industry should be the highly favorable customer satisfaction scores that alternative video services are receiving relative to traditional pay TV. The availability of faster network speeds stands to further fuel this shift in viewing preferences.”
Age makes a difference when it comes to willingness to cut the cord, as many similar surveys have proven out. Younger pay TV customers appear more at risk of canceling, according to the data, with 14 percent of those ages 18-34 indicating they plan to cut the cord in the next 12 months vs. 3 percent of those over 65 years old.
In terms of customer satisfaction, the Canadian subscribers surveyed rate their alternative video service higher than their traditional pay TV service for overall experience (7.58 vs. 7.04 on a 10-point scale). This is driven primarily by higher ratings for overall cost (7.84 vs. 5.97), J.D. Power says.
