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Bad News for ISPs and Cable TV Providers

May 21, 2014  •  Post A Comment

"We all want our ISPs and cable TV providers but that doesn't mean we like them. Both industries have sunk even lower in the ranks of customer satisfaction, according to a report released Tuesday by the American Customer Satisfaction Index," CNET reports.

The report notes that the rating for Internet service providers went down by 3.1% from a year ago, to a 63 on a 100-point scale, while the rating for subscription TV services fell 4.4% to a 65.

"Both industries are at the bottom of the barrel for customer satisfaction among the 43 tracked in total by ACSI," the report notes, adding: "Out of all ISPs, Verizon's Fios was tops in satisfaction with a score of 71, while Comcast and Time Warner Cable (which could join forces if a merger deal is approved) took home ratings of 57 and 54, respectively."

Complaints by consumers against ISPs included high prices, slow speeds and unreliable service, the report adds.

The piece notes: "All of the subscription TV providers ranked by ACSI saw their satisfaction rankings go down from last year. DirecTV and AT&T (which announced on Sunday a $48.5 billion merger) tied for first place with scores of 69. Comcast and Time Warner Cable again were in last place with scores of 60 and 56, respectively."

In a statement, ACSI Chairman and founder Claes Fornell said: "The Internet has been a disruptor for many industries, and subscription TV and ISPs are no exception. Over-the-top video services, like Netflix and Hulu, threaten subscription TV providers and also put pressure on ISP network infrastructure. Customers question the value proposition of both, as consumers pay for more than they need in terms of subscription TV and get less than they want in terms of Internet speeds and reliability."

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