• by Alex Weprin , May 25, 2018

While a majority of American households still subscribe to video services through traditional cable, satellite or telco companies, streaming video services have quickly established themselves as the market leaders in customer satisfaction and experience.

That is the takeaway from a pair of studies released in the past week. The American Customer Satisfaction Index released its 2018 Telecommunications Report, and for the first time included streaming services in its analysis.

The result? Streamers such as Netflix and Hulu averaged 75 points out of 100, compared to 62 out of 100 for linear subscription TV services. Their lower price points and ad-free or limited ad environments made for a favorable comparison to more expensive traditional bundles.

Another factor? Customer experience and ease of use, with a flexible and easy-to-navigate user interface, and relevant recommendations. According to a benchmarking report from UserTesting, Netflix and Hulu performed particularly well when it came to providing the best user experience, with Netflix securing an overall score of 89.5 out of 100, and Hulu scoring 86.8 out of 100.

Of course, there is one area where big video bundles still have an advantage: breadth of content. While services like Netflix have vast content libraries, the sheer volume offered by traditional bundles still dwarfs the streamers.

UserTesting’s report found that among streaming households, almost every one subscribed to multiple services.

“While participants appreciated the variety and amount of content available to them, the number one complaint from Netflix customers was the absence of specific content included in their subscription,” the report says. “Customers often found that specific content they were seeking wasn’t available.”

That breadth of content, along with other factors, is one reason why consumers have been slower to cut the cord than many have expected.

"Streaming services don't have the hidden fees and six-month rates that subscription TV does, not to mention they're cheaper and simpler,” said David VanAmburg, managing director at the ACSI.

“But because consumers don't have many options when choosing a subscription TV provider, those businesses don't see a lot of risk in customer dissatisfaction, and we're unlikely to see dramatic changes any time soon."