The CRTC’s mandate requiring cable providers to offer a so-called “skinny basic” package could help them stay relevant and co-exist with video streaming services, says a new study from J.D. Power.
The company’s 2016 Canadian Television Provider Customer Satisfaction Study found customer satisfaction is highest when they are given flexibility to pick and pay for individual channels and add them to their skinny package at an affordable price.
The study said consumer adoption of alternative video services such as Netflix was on the rise, with 49% of consumers indicating they have used one in the previous 12 months, up from 42% in 2015.
It said satisfaction is highest among customers with a skinny service that enables them to select additional channels individually (761 on a 1,000-point scale), higher than those with a premium service (738) and those with either a pre-set expanded basic package (708) or basic cable (700).
The study said more than one-quarter (28%) of customers had a skinny package costing $25 or less, and 13% of customers pick and pay for additional channels.
Satisfaction with cost is high among customers in this group, which the study said was “encouraging” for TV providers – who generally receive lower scores than alternative video services on cost of service (6 and 7.8 respectively on a 10-point scale).
Adrian Chung, director in J.D. Power’s telecom, media and technology practice, said providing customers with some leeway when it comes to their cable subscription could potentially prevent them from cutting the cable cord entirely and instead pay for a combination of services.
Among the study’s other findings:
- Satisfaction among TV customers in Canada has improved to 715 from 692 in 2015;
- Canadians pay an average of $70 for TV service, down from $73 in 2015;
- Among Canadians who used an alternative video service in the previous 12 months, 67% used Netflix, compared with 16% for Shomi and 9% for CraveTV;
The study is based on responses from more than 3,300 TV customers in western Canada and a further 5,700 in the eastern part of the country. Both studies were field between September 2015 and April 2016.
