Consumers far more likely to recommend online pay-TV than traditional services | Pay-TV | News | Rapid TV News
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The direction of travel for US TV is the is most certainly online and this has highlighted by consumer data from Parks Associates which has found the net promoter score (NPS) for traditional pay-TV providers has continuing to fall into the third quarter of 2018.

Parks tv NPS 29Nov2018Net promoter score measures willingness to recommend a service and is widely used to assess consumer perception of services and providers. In its study, Deep Dive: Churn and Retention in Pay TV, Parks examined the current state of churn among pay-TV providers, with a specific look at cord-cutting, cord-nevers, the impact of new OTT video services and skinny bundles, triggers to churn and effective retention tools.

The study found that the Q3 NPS for traditional pay-TV providers in the US was -19, falling 4 points since the beginning of the year. However, some TV providers — the study cited Optimum and DISH — improved their individual scores. By comparison, the average NPS for the major online pay-TV and OTT video services was positive, although their overall scores declined from 2017 to 2018.

In the survey, nearly four-fifths of US broadband households reported having traditional pay-TV subscriptions in early 2018. In addition, approximately a third of US pay-TV subscribers made a change to their service between the first quarter of 2017 and Q1 2018.

“The percentage of US broadband households that do not subscribe to traditional pay-TV increased from 16% in 2011 to 22% in 2017,” remarked Brett Sappington, senior director of research, Parks Associates.

“With each quarterly earnings report, pay-TV providers and their stakeholders are hyperaware of variances in subscriber figures, and they are trying to reverse this trend with their own brands of OTT services as well as other value-added services. A positive NPS score for these services suggests a positive perception and strong word-of-mouth activity. A key challenge for pay-TV providers is to design and launch services that will inspire loyalty among younger households. Older consumers profess higher loyalty to pay-TV providers, whereas younger households are more likely to have an OTT service.”