CHESTERFIELD, MO – Led by millennials, 79% of North American cable and satellite customers are considering reducing their pay-TV spending, says new survey data from customer experience software solutions provider Amdocs.
Respondents cited rising subscription costs (89%), irrelevant channel offerings (84%) and dissatisfaction with current levels of customer service (77%) as reasons for downgrading. Significantly, millennials – the 18 to 34-year olds who now make up the largest North American demographic segment, are even more inclined (84%) to cut or reduce their pay-TV spending.
Conducted by 451 Research Group, the research was conducted online in February-March 2016 and is based on responses from 2,000 consumers across North America, Western Europe, Russia, CALA and APAC. North American respondents accounted for 30% of the total sample.
The survey also captured potential consumer interest in “Wi-Fi First” plans that would provide seamless connection across Wi-Fi access points provided by cable operators, including automatic handoff to cellular networks and seamless login for subscribers. It found that 59% of respondents (62% of millennials), would recommend their TV service provider to friends and family if it provided high-quality, seamless Wi-Fi access outside the home, and 82% (88% of millennials) would consider using Wi-Fi as a primary access method.
Other key findings include:
– “Super aggregator” opportunity exists for cable operators who can manage all video content for their customers: 78% of respondents (86% 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 like Netflix.
– “One-shot” (or occasional) subscribers are becoming a factor: Perhaps fueled by the growth of ‘must-see’ programming such as sports events or series like Game of Thrones and Homeland, 40% of respondents (48% of millennials) reported that they’ve signed up with a pay-TV or OTT service just to watch one specific program or event, then promptly canceled their subscription.
– Consumers want personalized experiences: 55% of respondents value the ability to control and personalize their own content and viewing experiences. Forty-nine percent (54% of millennials) 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,” said Amdocs VP of market insight and strategy, Vincent Rousselet, in the news release. “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.”
