Streaming Services Outshine Cable and Satellite in Customer Satisfaction

According to the J.D. Power 2024 U.S. Television Service Provider Satisfaction Study, Virtual Multichannel Video Programming Distributors (vMVPDs), such as YouTube TV and Hulu + Live TV, have surpassed traditional cable and satellite TV services in customer satisfaction.

The report noted that live TV streaming customers, on average, are significantly more satisfied with their services compared to cable and satellite users, especially in terms of value for money.

Streaming services received an overall satisfaction score of 625 out of 1,000 points, compared to 524 for traditional TV providers.

The largest gap in satisfaction—140 points—was reported in the “value for price paid” category. The study found that the average monthly cost for live TV streaming services is $75, lower than the $120 average for cable and satellite services.

The shift towards vMVPDs is primarily driven by the appeal of lower costs. Still, according to Carl Lepper, senior director of technology, media, and telecom intelligence at J.D. Power, price is not the only factor.

“Live streaming has reorganized the industry, and as it continues, cable and satellite providers have been working hard to remain competitive, including exploring new revenue models to compete with the cost pressure,” Lepper said.

This growing preference for streaming reflects a broader trend in the television industry.

With services like YouTube TV, which ranks highest in the live TV streaming segment for the second consecutive year with a score of 651, viewers are finding both cost savings and convenience. Hulu + Live TV, the second-highest-ranked streamer, closely follows with a score of 635. In contrast, traditional cable and satellite providers are struggling to meet customer expectations. Spectrum, Xfinity, and Verizon Fios led in their respective geographic segments but scored significantly lower than their streaming counterparts. For example, Spectrum, which topped the national segment for cable and satellite, scored just 530.

The increasing dissatisfaction with cable and satellite services and the consistent rise of live TV streaming underscore a critical shift in consumer preferences. As vMVPDs continue to expand their offerings, traditional providers may need to rethink their business models to retain their customer base.