Pay-TV's Poor Customer Performance

A vast new customer satisfaction study covering more than 200 companies across 18 industries says pay-TV and internet service providers are among the worst performing businesses in terms of meeting consumer expectations. In fact, among all service communications providers, none received customer rankings of "excellent" or even "good," and only three scored well enough to be just "okay."

According to the 2012 Temkin Experience Ratings survey, the best scoring pay-TV providers were Bright House and DISH with a 61% approval rating ("okay"). The next best performing TV providers earning "poor" customer experience ratings were DIRECTV (58%), Cox (57%), Cablevision (55%), Comcast (52%), and AT&T, Time Warner Cable, and Verizon, all scoring 51%. The only pay-TV provider to rank "very poor" was Charter with 42% approval.

On the internet side, Cablevision topped the list with 63% approval, yet still only an "okay" rating according to the survey's metrics. Results below 60% earned companies a "poor" rating, which included: AOL (59%); Verizon (57%); AT&T (56%); Road Runner (56%); Comcast, Cox and then-Qwest (54%); and MSN (53%). The worst performing ISPs earning "very poor" ratings were Charter (44%) and EarthLink (41%).

Conducted by research and consulting firm Temkin Group, the survey placed average customer experience ratings for the pay-TV and internet service provider industries as 16th and 17th, respectively, out of the 18 industries covered. Out of all 206 companies examined, EarthLink and Charter were the two lowest rated organizations, while eight of the bottom 19 companies came from these two industries.

Temkin said its customer experience study evaluated companies on three dimensions: 1) Functionality: Does the company meet consumer needs?; 2) Accessibility: Is it easy for consumers?; and 3) Emotions: How do consumers feel about interacting with the companies? Bottom line, the study concludes: "Terrible customer experience remains an epidemic within the internet and TV services industries." •

ACA's Abdoulah: Modernize Retransmission, Sports

Kicking of ACA's 19th Annual Washington Summit, ACA Chairwoman Colleen Abdoulah pressed policymakers in D.C. on two major points: 1) modernizing retransmission consent rules, and 2) curbing out-of-control sports programming fees. The WOW! CEO says these aspects of the video delivery chain are largely responsible for the growing concerns about a lack of consumer choice in programming and are in dire need of reform.

In her comments, Abdoulah said retransmission consent law was "out of date" and that there is "overwhelming evidence that broadcasters are abusing their market power" to boost bottom lines. The exec urged ACA members to personally visit representatives on Capitol Hill and at the FCC to reiterate the importance of modernizing the retrans regime and convey their collective message of enough-is-enough. "Don't be surprised if you run into (NAB) boosters" while you're there, she added.

On the issue of escalating national and regional sports nets costs - and the inability of non-sports fans to have an alternative to paying for channels they don't watch - Abdoulah said she hoped lawmakers would soon decide to step in and mediate.

"With ESPN, NBC, CBS, and FOX signing new deals with the NFL that will cost $42 billion, we know who pays for this: It will be forced down the throats of all pay-TV customers, including millions of consumers who are not sports fans." she said. "It is our hope that it won't be long before Washington officials decide it might be appropriate to call time out and do something." •

Etc.: Charter's Municipal Battle - DISH Stays Wireless Course - Discovery Deals w/ Amazon

Battleground: Charter has reportedly slashed prices to its internet service in competition with a municipal ISP in Monticello, Minn. Local groups said the move was "either predatory pricing or the cable industry is out of control." Check this out. --- Despite serious legal challenges from broadcasters, Aereo launched Wednesday in NY giving members a 90-day free trial. The company released a statement saying the service was live, but reports said the public couldn't actually sign up (invitation only). Speaking at SXSW this week, Barry Diller reiterated that the company isn't "transmitting" anything. MediaPost has this story. --- SNL Kagan says DISH is moving forward with its wireless broadband plans and might be developing dual-mode smartphones for its proposed LTE network. Read more.

Disputes: AMC Network and Suddenlink reached a new carriage deal. "Walking Dead" fans, rejoice.

Rules & Regs: The FCC's Media Bureau is seeking comment on whether the Comcast/NBCU benchmark condition needs clarification and if a proposed third protective order for compliance should be adopted.

Deals: Discovery inked a deal with Amazon for streaming rights to some of the company's "older" programming. While financial terms of the deal were undisclosed, reports suggest the deal is similar, if not identical, to the one Discovery signed with Netflix last year. Details here.

Research: TV stations' local online ad revs jumped by 41% last year to $1.97B, and are projected to increase another 35% in 2012 to $2.7B. According to Borrell Associates, total local online ad revs increased 20.6% to $16.4B in 2011 and is expected to continue growing by 21.3% to $19.9B this year.  

Dist.: Outdoor Channel renewed its multi-year agreement with AT&T U-verse for carriage in both standard-def and HD across all of its markets. --- FilmOn.TV Networks signed a carriage deal with Baby TV, a Fox Entertainment Group channel. --- Comedy Central inked a multi-year deal with Sony Picture Television to license NBC's comedy "Community" and will launch the series with three seasons beginning in the fall of 2013.

Deals: Clearwire signed a five-year wholesale 4G LTE agreement with Cricket. --- blinkx entered a partnership with new media company Noise11 giving its users access to breaking music news, artist interviews, live concert footage and more. blinkx will leveraging its AdHoc platform to place contextually relevant advertising against the vids and share resulting revenue with Noise11.

Service: Buckeye CableSystem will use ARRIS Group solutions for its whole home, VOD and network monitoring services.

Footprint: Verizon is launching its 4G LTE service in seven new markets today, bringing its total to 203.

In Court: Former Yahoo board member Eric Hippeau's reaction tweet to Yahoo's lawsuit against Facebook: "Pathetic and heartbreaking last stand... It's all over. I loved you very much." Ouch. --- LightSquared has hired a team of litigators in anticipation of a legal battle with U.S. regulators. --- PBS' Charlie Rose is being sued for allegedly employing unpaid interns, a violation of NY state labor laws.

Over, Up & Under: China's top PPV and VOD service YOU OnDemand signed a deal with Magnolia Pictures to distribute the studio's titles on its TVOD and SVOD platforms.

Events: FCC Chair Julius Genachowski will address the 2012 NAB Show in Las Vegas on Monday, April 16.

People: Speculation is growing that BSkyB is lining up deputy chairman Nicholas Ferguson to replace embattled chairman James Murdoch. Ferguson's move to step down as chairman of SVG Capital "clears the way" for him to take the helm. --- More turmoil at Cablevision? Jim Blackley, EVP of corporate engineering & tech, and Kathleen Mayo, EVP of consumer ops, are the latest execs to leave the company. CVC said the moves are "inevitable." ---  The Cable Center named Alan Gerry, chairman & CEO of Granite Associates, as the 2012 Bresnan Ethics in Business Award recipient. --- NAMIC named Dr. Nicol Turner-Lee, VP and Director of the Media & Technology Institute at the Joint Center for Political and Economic Studies, as its new president and CEO. Turner-Lee will begin her new post on April 2, 2012.

--- Catch today's media market news in The Evening BRIDGE. •

ADVERTORIAL: Alan Gerry Receives 2012 Bresnan Ethics in Business Award

Congratulations to Alan Gerry on being named the 2012 Bresnan Ethics in Business Award recipient.  Gerry will be presented the industry award, honoring the late William J. Bresnan, founder and chairman of Bresnan Communications and long-time chairman of the board of The Cable Center, at the Cable Hall of Fame Celebration, May 21 at the Marriott at Copley Place in Boston.

“It is a real honor to be recognized with the Bresnan Ethics in Business Award,” said Gerry.  “Bill was a treasured colleague and friend, and I truly admired his dedication to this industry and the ideals he upheld in his business life.”

Gerry, chairman and CEO of Granite Associates L.P., and chairman of the Gerry Foundation, is a pioneering entrepreneur in the industry.  As the founder, chairman and chief executive officer of Cablevision Industries Corporation, he grew the business from a small television sales and repair shop in rural Liberty, NY, to the largest privately held cable company in the country, serving over 1.3 million subscribers in 18 states, when he sold it to Time Warner in 1996.   Gerry contributes his talents and experience to many industry organizations, including CablePAC and The Entrepreneur’s Club, and has been the recipient of numerous awards and citations, including the Vanguard Award; Entrepreneur-of-the-Year Award for the New England Chapter of the Institute of American Entrepreneurs; Distinguished Citizen Award from the Boy Scouts of America; and the Americanism Award from the Anti-Defamation League.  He was inducted into the Cable Hall of Fame in 2000.

The Bresnan Ethics in Business award was created to honor outstanding men and women in the cable industry who best exemplify Bill Bresnan’s longstanding commitment to ethics in business. An exhibit honoring the award recipients is on permanent display at The Cable Center.

The Cable Hall of Fame is sponsored by Rogers Communications, Viacom, and BET Networks.  

Online registration is now available at www.cablehalloffame.com.