US cablecos set for $7BN hit from dissatisfied customers
Joseph O'Halloran
| 10 June 2014
As if cut-throat competition wasn't enough for them to deal with, the leading US cable companies are projected to lose $6.9 billion in revenues if they don't improve customer service, warns analyst cg42.

In its investigation of the US cable industry the analyst found, somewhat alarmingly, that the US cable industry's brand vulnerability is a full 50-70% higher than other industries, even the hated retail banking sector. The vulnerability was defined in terms of a brand's level of risk for increased customer attrition, decreased acquisition effectiveness and the associated financial loss. The study also quantified the projected impact of the vulnerabilities on anticipated customer switching and cord-cutting behaviour over the next 12 months.

Alarmingly for the industry, nearly three-quarters (73%) felt that cable companies were predatory in their practices and took advantage of consumers' lack of choice. A similar percentage expressed concern that the larger the cable companies become, the worse off consumers were. Just over two-thirds thought there was too little competition among TV/entertainment content providers while 58% did not feel that they had a real choice in TV/entertainment and content providers, and felt stuck with their current provider. The sum total was that 53% would leave their current provider if they had a choice.

As to which one they would most likely leave, out of the top five US cable providers, Comcast and Time Warner were found to both have the highest levels of brand vulnerability and the most revenues at risk over the next 12 months, followed by Charter, Cablevision and Cox.