Pay-TV Providers Neglect Customer Experience at Their Peril, New Paywizard Research Reveals

LONDON–(BUSINESS WIRE)–Pay-TV operators can no longer simply rely on the strength of their
content offering to maintain subscriber loyalty but must raise their
customer relationship management game to gain ground in an increasingly
competitive marketplace, new global research from subscription,
billing and CRM specialist Paywizard shows. The survey of more
than 6,200 consumers reveals 24% have cancelled a
digital pay-TV service
in the previous 12 months because of poor
customer experience
, while 84% say they would terminate a
relationship with a TV provider if service and support were lacking and
the company seemed out of touch with their needs.

The survey, which includes findings from the United States, the United
Kingdom, Australia, Brazil, Germany, and Singapore, also reveals 46%
of consumers have retained a digital pay-TV subscription they
might otherwise have cancelled because of positive customer experience.
The findings show younger consumers place greater value on customer
experience when it comes to sticking with a provider, as 57% under
age 35
say this has been a factor in keeping a service over the past

Bhavesh Vaghela, Paywizard’s Chief Marketing Officer,
says: “We are seeing a fundamental shift taking place in the pay-TV
marketplace, with customer experience emerging as critical to television
service providers’ success – in many cases, their very survival. While
content and cost are often cited as the elements influencing pay-TV
uptake and cancellations, the survey findings demonstrate that customer
experience has undeniably emerged as a major driver. This is
particularly true for operators of over-the-top (OTT) services, as
simply relying on a decent content offering is no longer nearly enough.”

He adds: “With industry projections indicating roughly a billion pay-TV
subscriptions are up for grabs this year – and billions in revenue are
on the line – it is clear from the research that pay-TV operators today
ignore customer experience at their peril.”

The research also demonstrates that to be on the winning end of
consumers’ decisions regarding their TV and entertainment budgets,
pay-TV operators must overcome a ‘dip-in, dip-out’ attitude on the part
of subscribers. The survey reveals most consumers intend to drop some
pay-TV services – for instance, cutting part of a cable or satellite
package – if they take another, such as an on-demand video subscription.
The research shows 64% of those who have not taken a new
subscription in the past would cut back on other digital
subscriptions or downgrade a general package
to bring down the cost
if they were to sign up to a new or additional pay-OTT service.

The findings indicate, however, that in practice pay-TV operators
providing a positive customer experience can beat the odds. In fact, the
survey reveals 74% of consumers who have added a digital pay-TV
subscription over the past year end up increasing their overall spend

on television and entertainment. On the other hand, more than a
quarter still reduced total TV spend
by downgrading their general
pay-TV package or cutting other subscriptions – making clear that there
are losers among operators that fail to build strong bonds with their

Download the full report, Facing the perils of failed customer
experience: Why pay-TV operators need to love their subscribers
, here.

About Paywizard

Paywizard has been supporting subscription-based businesses for over 18
years. Our experience is real. Helping over 100 Pay-TV operators
including: ITV, eir Sport, BT Sport, BoxNation.

We know what it takes to acquire, grow and retain paying customers. This
insight is deeply embedded in all that we do.

With over ten million customers acquired, our Paywizard Agile Platform
delivers advanced subscription, billing and CRM with performance
marketing modules.

When combined with our consulting services and expertise, we’ve helped
our clients deliver inbound acquisition rates of up to 90%, outbound
campaigns driving up to 25% conversions, and churn reduction programmes
achieving turn-around figures of up to 60%.

Ultimately we deliver personalised experiences across each customer
moment. The result: happy and engaged customers.


For further information, please contact:
20 7486 4900