2014 may have already started, but the smartphone and subscription-based services sector has already seen some highs as well as lows with the year finally panning out. Apparently, while the cell phone market has continued its climb to the top, the subscription-based service sector hasn't really been able to catch up.
As reports have suggested, subscription TV and Internet service providers (ISPs) have sunk to the bottom of the American Customer Satisfaction Index in its annual measure of communications industries. Apparently, SPs have dropped 3.1% with an ACSI score of 63 on a scale of 100, while subscription TV has also plummeted at 4.4% to a score of 65.
"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," says Claes Fornell, ACSI Chairman and founder.
"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."
Sticking to the cell phone satisfaction for the moment, the customer satisfaction with cell phones has climbed up for the second straight year, rising 2.6% to a new all-time high ACSI score of 78.
And in the wake of this popularity, South Korean tech giant Samsung, as it seems, has climbed over its nearest rival Apple in the United States in terms of customer satisfaction. As reports have suggested, Samsung has climbed 7% to an ACSI score of 81, beating Apple in overall customer satisfaction for the first time.
"Samsung has gone from up-and-comer to top-of-the-heap on the strength of its smartphone portfolio. Apple's magic isn't gone, but the luster has dulled on its older models," says David VanAmburg, ACSI Director.
"Each iteration improves on the last, but Apple's year-long product refresh cycle is an eternity when a new Android phone seems to be released every week."
Apart from that, in terms of customer satisfaction for subcription TV service and the likes of it, customer satisfaction has been deteriorating. In fact, it has been deteriorating for all of the largest pay TV providers.
To make things even worse, Cable giants Comcast and Time Warner Cable have had the most dissatisfied customers. While Comcast falls 5% to 60, Time Warner has registered the biggest loss and plunges 7% to 56, its lowest score to date.