Almost 8 in 10 U.S. and Canadian cable and satellite pay TV consumers (79 percent) are considering reducing their spending, according to a new survey commissioned by Amdocs and conducted by 451 Research Group. People polled cited rising subscription costs (89 percent), irrelevant channel offerings (84 percent) and dissatisfaction with current levels of customer service (77 percent). The survey had Millennials particularly inclined to cut or reduce their pay TV spending (84 percent).
The survey also showed potential consumer interest in “WiFi First” plans that would provide seamless connection across WiFi access points provided by cable operators, including automatic handoff to cellular networks and seamless login for subscribers.
“The big take-away here is that pay TV providers need to reinvent themselves to stay relevant,” Sheryl Kingstone, industry customer experience analyst at 451 Research, says. “People now have more choices than ever on how they view video – mobile device, on-demand, over-the- top – and service providers need to respond to this world of digital immediacy.”
The research also shows a “super aggregator” opportunity exists for cable operators: 78 percent of respondents (86 percent of Millennials) said they would be more willing to maintain their current pay TV subscription if it offered a single source to easily search, discover and watch content, including the ability to watch online video and access content from OTT services.
WiFi access outside the home also was a big pull for survey respondents, with 59 percent of respondents (62 percent of Millennials) saying they would recommend their pay TV provider to friends and family if it provided high-quality, seamless WiFi access outside the home. And 82 percent (88 percent of Millenials) reported they would consider using WiFi as a primary access method.
The idea that consumers often subscribe to a pay TV or OTT service just to watch one specific program or event then promptly cancel was also indicated in the survey. These “one-shot” consumers showed up as 40 percent of respondents (48 percent of Millennials) in the survey.
In terms of valuing the ability to control and personalize their own content and viewing experiences, 55 percent of respondents said that was important. Forty-nine percent (Millennials: 54 percent) expect their pay TV provider to use the information they have to provide custom-tailored service offerings and customer support.
“Rapidly changing consumer behaviors – based on digital lifestyles, and largely driven by Millennials – are challenging cable and satellite operators’ core business,” Vincent Rousselet, VP of market insight and strategy at Amdocs, observes. “This survey affirms that to stay relevant, pay TV providers need to manage the entire customer journey by understanding the customer and their preferences in order to differentiate themselves, cement customer loyalty and capture new growth opportunities.”
The research, conducted online in February-March 2016, is reportedly based on responses from 2,000 consumers across North America, Western Europe, Russia, CALA and APAC. North American respondents accounted for 30 percent of the total sample. Amdocs offers solutions to cable and satellite operators to create personalized digital experiences for their customers. The company is at Booth #550 at INTX in Boston this week.
