Consumers are more satisfied with video streaming services such as Netflix and PlayStation Vue than they are with traditional TV services — and by a wide margin — according to a new report from The American Customer Satisfaction Index.

This year’s version of the ACSI Telecommunications Report, based on data from interviews with about 250,000 consumers, found that overall customer satisfaction with subscription TV services fell 3.1% to a score of 62 (out of a possible 100), an 11-year low.

By comparison, video streaming services, which included a mix of subscription and free VOD services and OTT TV offerings, pulled in a score of 75, getting high marks for ease of understanding of bills, ease of use of on-screen menus and guides and overall performance and reliability. Areas that need work are access to current TV shows and new movie titles. Netflix, PS Vue and Twitch led the group with a score of 78. Other examples: YouTube Red/Premium (76); Amazon Prime Video and Hulu (75); CBS All Access (74); HBO Now and Starz (72); Sling TV (71); and DirecTV Now (70).

Among traditional pay TV services, AT&T U-verse TV topped the charts in 2018 with a score of 70, followed by Verizon Fios TV (68), and Dish Network (67) and DirecTV satellite TV (64). Optimum (Altice USA) was the highest-scoring cable operator with a 62, down from 66 in 2017. Pay TV picture quality got high marks. Call-center satisfaction fell to the bottom.

The disparity in customer satisfaction comes as people continue to defect to lower-cost online video services alongside OTT experiences that have “fundamentally changed buyer expectations,” ACSI said. “OTT operators have raised the bar by providing greater personalization, lower prices, more mobility — and much better customer service.”

Some longtime cable rate critics will get another chance to publicly criticize cable rates.

Sens. Rob Portman (R-Ohio) and Claire McCaskill (D-Mo.), chair and ranking member, respectively, of the Permanent Subcommittee on Investigations, confirmed they will hold a hearing June 23 at 10 a.m. on the state of the pay TV industry, signaling their displeasure with it.

“Consumers in every corner of the country share common experiences about fending for themselves against customer service and billing practices by TV providers that are at best confusing, and at worst deceptive,” they said in a joint statement. “For more than a year, we have conducted a bipartisan investigation of the largest cable and satellite TV companies. We believe our hearing will be a big step forward for consumers, allowing them to understand how their TV providers really work and make informed decisions about their video service.”

McCaskill, who formerly chaired the Senate Commerce Committee's Consumer Protection subcommittee, has been hammering the cable industry on rates and customer service for years; her actons have included trying to amend STELAR, the satellite reauthorization bill, to include provisions to put cable's feet to the fire. Another veteran cable rate critic, Republican John McCain (R-ARiz.) is also on the subcommittee. 

McCaskill's office said the hearing will focus on billing, fees, refunds and customer service issues and is part of a general inquiry, which will extend into the fall, into potential barriers to competition .

No witnesses were identified, but they are said to represent more than 70 million subscribers and more than 70% of pay TV households.

The senators cited the recent American Customer Satisfaction Index survey, which found pay TV near the bottom of those industries surveyed, following the previous year's finding that pay TV was tied for the lowest score.

Cable operators improved their ratings significantly in the latest American Customer Satisfaction Index, with some providers improving their overall scores by 15% or more, but still couldn’t pass stronger showings from telco and satellite TV providers.

Cable stopped its two-year decline in ACSI pay TV ratings, rising 3.25% as a whole, but still finishing last in ACSI’s annual customer satisfaction ratings, a random sample of 12,710 consumers, with scores ranging from 54 to 66 out of 100. Telco TV finished first and satellite TV service providers placed second.

Among cable operators, the biggest gainers were Time Warner Cable, which rose 15.7% from a 51 in 2015 to a 59 in 2016 and Comcast, which increased its ACSI score 14.8% from 54 in 2015 to 66 this year. The highest rated cable companies were Bright House Networks and Cablevision Systems, each with a score of 66. Bright House was purchased by Charter Communications (which scored a 60) in May and Altice N.V. is expected to close its purchase of Cablevision later this month.

“It’s not too hard for cable companies to improve when their starting point is the cellar,” said ACSI Managing Director David VanAmburg in a statement.

Acquisitions could play a role in next year’s ratings as companies that are involved in mergers typically post lower scores once their deals are done. Charter closed on its $78.7 billion purchase of Time Warner Cable on May 18, the same day it closed the Bright House deal.

Again, telcos Verizon and AT&T U-Verse had the best scores in the subscription TV segment – 70 and 69, respectively.  DirecTV received a 68 rating (the same as last year) and Dish Network had a 67, even with 2015.

The tables were turned on the Internet Service Provider front, with cable operators performing best. Verizon secured the top spot again with a 73 rating (the highest ever for the segment), with Cablevision Systems up 13% to a score of 69, Bright House Networks up 7% to 67 and Time Warner Cable up 14% to 66. Charter increased its score 11% to 63 in the period.

“High-speed Internet access is a must-have in the digital age, making ISPs and wireless companies critical providers for the workplace as well as the home,” said ACSI founder and chairman Claes Fornell in a statement. “With relatively few options, consumers have limited means for punishing companies for poor service.”

The cable industry’s recent push to boost customer service ratings couldn’t come at a better time, as satisfaction ratings for pay TV, Internet and wireless offerings have reached seven-year lows, according to a recent American Customer Satisfaction Index report.

According to ACSI, customer satisfaction with information services – including subscription TV, Internet, wireless and fixed line telephone and computer software, dipped 3.4% in its more recent survey to a 68.8 score out of a possible 100. ACSI said that satisfaction with subscription TV service deteriorated the most, dropping to 63 and tying with Internet Service Providers for the worst score among the 43 industries ACSI follows.  

ACSI data, which is based on 14,176 customer surveys collected in the first quarter 2015, show the decline results from poor customer service combined with higher prices.

“There was a time when pay TV could get away with discontented users without being penalized by revenue losses from defecting customers, but those days are over,” says ACSI chairman and founder Claes Fornell said in a statement. “Today people have more alternatives than ever before. Consumer abandonment of pay TV is shaking up the industry and lower satisfaction could mean even more cord cutting by subscribers ahead.”

On the subscription TV side, Comcast and Time Warner Cable had some of the biggest declines, with Comcast falling 10% to a 54 ACSI score. TWC, according to ACSI, earned the distinction of the least-satisfying company in the index, dipping 9% to a score of 51. Mediacom Communications also scored a 51 on the survey.

The news comes on the heels of major efforts by some cable operators to boost their customer service profile. In May, Comcast unveiled a sweeping customer service program aimed at enhancing the overall customer experience, opening new user-friendly Xfinity stores across the country, building new customer service centers and committing to hiring 5,500 new customer care reps over the next three years.

Charter Communications, which agreed to purchase Time Warner Cable on May 26 in a deal valued at $78.7 billion, has said improved customer services will be a major factor in the combined company’s expected $800 million in annual cost synergies.

Charter actually rose 5% in the ACSI survey to a score of 63 and its other merger target – Bright House Networks logged a score of 65 – for the title of most improved in the cable sector. But ACSI warned that momentum may be hard to maintain as its data typically shows that mergers usually result in lower customer satisfaction, at least in the short term.

“Cable companies are trying to strengthen their positions through consolidation, but the benefits to consumers of one coaxial cable company absorbing another are questionable,” said ACSI director David VanAmburg in a statement. “The AT&T-DIRECTV merger may be different, however, because it would allow AT&T to deliver TV service via multiple technologies.”

While cable operators continued to struggle, telco TV and satellite TV service providers showed gains. With a score of 71 (up 4%) Verizon’s FiOS snatched the lead from DirecTV (-1% to 68) and AT&T’s U-verse (unchanged at 69). Cablevision Systems enters the ACSI as the highest-scoring large cable company with a 67 score, tying the lowest-scoring satellite provider, Dish Network.

Customer satisfaction with ISPs remained unchanged at 63, tied with subscription TV for last place among 43 industries. Two large ISPs did improve – AT&T (U-verse) rose 6% to an ACSI to 69; and Time Warner Cable gained 7% to 58. Bright House Networks matched the industry average at 63, while  Cablevision Systems and Frontier Communications debuted at 61.

Several ISPs suffer large drops in customer satisfaction, including CenturyLink (-8% to 60), Cox Communications (-9% to 58) and Charter Communications (-7% to 57). Comcast stays at the bottom of the category, slipping 2 percent to 56.

Despite the volatility in the TV and Internet space, consumers continue their love affair with their cell phones, which logged in with a score of 78, the highest yet for the industry. With some of the strongest scores in the entire ACSI, the two largest smartphone manufacturers lead the way: Apple and Samsung Electronics. Apple advanced 1% to 80, going head-to-head with Samsung (-1%).

“Despite its high-scoring phones, Samsung may find it difficult to chip into Apple’s market share because of the need to overcome the brand appeal that is Apple’s mainstay,” VanAmburg said in a statement. “Samsung gained an initial advantage as the first manufacturer to introduce large screens for smartphones, but with the launch of large-screen phones by Apple, its loyal customers have little reason to look elsewhere.”

Meanwhile, customer satisfaction with wireless telephone service fell 2.8% to 70. The aggregate of smaller wireless companies has the highest customer satisfaction and even shows slight improvement (+1% to 79). Smaller companies tend to be no-contract carriers with lower fees, which many customers see as better value.

With the clock winding down on its pending merger with Comcast, Time Warner Cable ended the year on a slightly sour note, being named the least popular brand in not one but two categories (Internet and Video service) in a consumer satisfaction survey done by the University of Michigan.

Time Warner Cable placed dead last in both categories in the University of Michigan’s American Customer Satisfaction Index, a comprehensive survey that involves about 70,000 interviews covering 230 brands.

According to ACSI, Time Warner Cable scored a 54 out of a possible 100 for its Internet service and its pay TV service scored a 56, to take the two worst spots in the survey. The second worst spot for ISPs belonged to – you guessed it – Comcast’s Internet service, which scored a 57 out of a possible 100. Comcast also finished second to last for video service, scoring a 60 out of a possible 100, compared to 63 in the previous year.  

“We are always looking for ways to deliver improved value, reliability and service to our customers,” Time Warner Cable said in a statement. “We are investing nearly $4 billion into our network and operations in 2014 alone to provide faster speeds, new set-top boxes and better overall customer experiences. Specifically, we have added new channels and On Demand content; expanded access to live TV and On Demand via our TWC TV app to eight different platforms such as Kindle, Xbox and Roku; and provided access to more than 300,000 WiFi public hotspots.  We now also offer popular one-hour appointment windows and expanded weekend and evening appointment options." 

All pay TV providers scored lower in the most recent survey than in the previous year, especially when it came to video service.  Charter Communications scored 60 for video service in 2014, down from 64 in the prior year; Cox Communications scored 63, down from 65 in 2013. DirecTV (69) and Dish Network (68) also fared worse than in the previous year, when they scored 72 and 70, respectively. Survey leader  AT&T U-Verse with a score of 69 was below the 71 it scored in the prior year as was Verizon’s FiOS TV’s 68, five notches below the 73 it scored in 2013.

On the ISP side, telco competitors Verizon Communications’ FiOS and AT&T U-Verse topped the list with scores of 71 and 65, respectively, matching their previous year’s tally. Rounding out the ISP scores were Charter with 61 (compared to 65 in 2013); and Cox with 64 (compared to 68 last year).

The ACSI survey was started in 1994 and was developed to provide information on satisfaction with the quality of products and services available to consumers