Over two-thirds of American pay television subscribers would be willing to switch providers if offered a price discount of 20%, according to a report just published by Strategy Analytics. While Cable customers were the most likely to churn, only half as many (33%) of Telco TV/IPTV subscribers would jump ship. The report, “Digital TV Customer Satisfaction: US Survey Results 2H'09
,” surveys 856 digital pay television subscribers in the US.
Overall, respondents reported high satisfaction with their current digital television provider, with 71% claiming to be "somewhat" or "very" satisfied. There was a marked difference, however, among access platforms. Telco/IPTV customers reported 95% overall satisfaction, compared to 78% for Satellite, and 67% for Cable. Fewer than 22% of subscribers—irrespective of platform—felt they were getting “value for money” that exceeded expectations.
While Telco TV/ IPTV is expected to make impressive strides in the upcoming years, the platform's success is certainly not a foregone conclusion, according to Piper. In a highly penetrated market such as the United States, growth will not be organic. Rather, Telcos will need to articulate a compelling case for users to switch.