AT&T announced plans to buy DirecTV for almost $50 billion. I won’t comment on the deal, but want to make some observations about what this might mean for customer experience in the TV services industry.
As we show in our examination of the 2014 Temkin Experience Ratings, the TV services industry delivers terrible customer experience. It has the lowest average score out of 19 industries. When Comcast and Time Warner came together, it actually combined two of the worst companies in delivering customer experience.
But the DirecTV and AT&T combination has more upside for consumers. As you can see in the chart below, DirecTV is one of the best companies in the industry across many of our Temkin Ratings (see Temkin Forgiveness Ratings and Temkin Trust Ratings). It also has a relatively (for the industry) high number of consumers that are willing to recommend the company. AT&T, on the other hand, is about average for customer experience in the industry, but it is above average in the other measures.
Hopefully the combined AT&T and DirecTV will focus on building differentiation through great customer experience. The bar isn’t very high in the industry and it’s already on the right path.
The bottom line: Great customer experience in TV services will drive loyalty