Report: Cord-Cutters Least Satisfied Among Streaming Video Consumers

NEW YORK: According to new research from J.D. Power, customers tend to be a lot happier with services like Netflix, Hulu, Amazon and other streaming platforms when they keep their existing pay-TV subscription.

Cord-cutters had the lowest overall satisfaction scores (802) of any customer segment in the J.D. Power 2016 Streaming Video Satisfaction Study. This group was followed closely by cord-nevers (807). Cord-stackers (826) and cord-shavers (822) had the highest overall satisfaction levels. Customers who do not have cable/satellite TV have lower satisfaction in all factors than those who do, with an especially large gap in the content dimension (-40 points).

Netflix ranks highest among the largest streaming video brands with an overall score of 829. Netflix leads or ties with the highest score in five of the six factors, performing especially well in performance and reliability and in customer service dimensions. Hulu follows close behind at 821, one point above the industry average. Cost of service and communication are strong areas of performance for the brand.

“The streaming video customer experience appears to be stratifying across the different subscriber segments, with pay-TV service still having a major effect on the overall streaming video experience,” said Kirk Parsons, senior director and technology, media and telecom practice leader at J.D. Power. “Part of the reason is demographics. Customers who only stream are younger than those who also have TV. Nearly two-fifths (37 percent) of customers who only stream are 18 to 34 years old, compared with 30 percent of those who also have TV. Notably, 52 percent of cord-nevers are 18 to 34. Also, streaming-only customers are less likely to use transaction-based streaming services, which perform higher in the content measure.”