Netflix is #1 in Customer Satisfaction Among Streaming Services

Over half of all U.S. households have a paid subscription to at least one streaming service, and Netflix, Inc. (NASDAQ:NFLX) ranks first among all providers in terms of customer satisfaction.

From 24/7 Wall St.:

J.D. Power study measured customer satisfaction on six key metrics: performance and reliability; content; cost of service; ease of use; communication; and customer service. Scores for each measure are reflected in an index based on a 1,000-point scale.

Top ranked Netflix scored 829 and Hulu scored 821. The industry average score was 820. Third-ranked Vudu, owned by Wal-Mart Stores Inc. (NYSE:WMT), scored 810, Apple Inc.’s (NASDAQ:AAPL) iTunes scored 807 and Amazon.com Inc. (NASDAQ:AMZN) scored 806.

Netflix led or tied for the lead on all six metrics, and it scored exceptionally well on performance/reliability and customer service. Hulu’s cost of service and communication were its highest scoring metrics.

From J.D. Power itself:

The streaming video customer experience appears to be stratifying across the different subscriber segments, with pay TV service still having a major effect on the overall streaming video experience. Part of the reason is demographics. Customers who only stream are younger than those who also have TV. Nearly two-fifths (37%) of customers who only stream are 18-34 years old, compared with 30% of those who also have TV. Notably, 52% of cord nevers are 18-34. Also, streaming-only customers are less likely to use transaction-based streaming services, which perform higher in the content measure.

Despite having the highest customer satisfaction levels in the segment, and a huge amount of original programming, Netflix has struggled to achieve its ambitious growth goals.

NFLX-2016-08-26

Netflix shares fell $0.31 (-0.32%) to $97.01 in Friday morning trading. NFLX has plunged 15% this year, hurt mainly by slowing subscriber growth.

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