Attitudes about Charter Cable

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1 Final Report Community Survey: Attitudes about Charter Cable conducted for The Town of Highland Park & The City of University Park Michael E. Egan, PhD, CMC Hillcrest Rd. Ste 880 Dallas, TX

2 Methodology Telephone interviews 425 total, 18 minutes long 175 University Park 175 Highland Park 75 Non subscribers (6 minutes) CATI Error: plus or minus 5 percentage points Statistical analysis Participant profile Gender: 61% Female Sole cable decision maker 76% Average age: 54.8 years Single family household: 88% Average No. TVs on cable: 3.2

3 Key Findings Low overall satisfaction (59%) and very low overall satisfaction with the value (35%). Of 20 attributes associated with cable service only two had satisfaction scores higher than 70%: Accuracy of your bill? (85%), Availability of the programming you want? (77%). Among agreed-upon contractual services, no more than half rated Charter as doing a good or excellent job. Lower cost was the most important factor to both subscribers and non subscribers to encourage broader cable service usage. Overall Satisfaction and Value were independent, but factors driving these perceptions had considerable overlap. Three in five subscribers (61%) obtained services provided by Charter from other suppliers, mostly high speed internet access. Over half (57%) of non-subscribers had previously subscribed to a cable service, and had done so for an average of 6.7 years. Their most common reasons for dropping: Cost (51%) and Service (47%). A third (35%) dropped because of reception. Of ten service problems, almost half of all subscribers (49%) experienced Intermittent loss the internet more often than 5 times in the past two years. Other frequent problems: Partial channel loss (42%), Total internet loss (41%), Intermittent television loss (40%), degraded picture (37%), Slow internet (37%), Loss service (33%) and Total outage of your cable television service (32%). Only 18% of frequent problems did not require a service call. Highland Park had higher Intermittent television loss (45% to 36%) and higher Total outage (39% 24%) than University Park, but University Park had significantly higher Loss of internet (39% to 24%). About half (54%) who called Charter were satisfied with the way their concerns were addressed; about a third (31%) were dissatisfied, significantly more often among men than women. (40% vs. 26%). Most (81%) subscribers had called for service, but 30% were on hold too long. A service call was required for 68% of the calls, but only 35%were scheduled according to the terms of the Charter contract. Generally, service technicians arrived promptly (62%), but less than half of the service calls (42%) ended with the problem being fixed on the first visit, most often because the problem persisted.

4 Type of service 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 % High speed internet access like DSL An antenna for television reception Direct Satellite Dish Network Dial up internet access 9% 4% 1% 15% 19% 29% 41% 41% 47% 65% Non cable services by subscribers 61% Basic Cable television programming 89% Extended Basic Cable television programming 61% Cable internet access Premium Movie Channels on Cable Digital cable television High definition television 14% 24% 29% 29% Subscribers Non Subscribers Shows the percent of respondents answering; Multiple responses (n=425)

5 Reasons for Dropping Cable Services 0% 10% 20% 30% 40% 50% 60% Cost 51% Service 47% Reception 35% Unresponsiveness Programming Picture quality 23% 26% 28% Features Other: Moved, Didn't want, etc. 16% 19% Shows the percent of respondents answering; Multiple responses (n=43)

6 Duration of current Cable Service Subscription Cable television 8.6 Dial up internet access 5.8 Cable internet access 4.6 Direct TV 4.2 High speed internet access 2.9 Dish Network 2.5 Shows the average time (number varies)

7 Frequency of problems (Past 2 years) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Intermittent loss of your internet connection via cable 19% 5% 16% 12% 49% Ability to access all your channels 30% 8% 10% 11% 42% Total loss of your internet connection via cable 22% 8% 14% 16% 41% Intermittent loss of your television service 17% 9% 14% 20% 40% Seriously degraded picture quality 32% 12% 11% 8% 37% Slow internet speeds 41% 5% 8% 10% 37% Loss of access to Charter's service 44% 8% 4% 12% 33% Total outage of your cable television service 20% 11% 15% 23% 32% Any problem not requiring a service call 54% 8% 10% 11% 18% A problem with your bill 77% 10% 5% 3% 5% Never ONCE TWICE 3 TO 4 FIVE + Shows the percent of respondents answering; (n=350)

8 Problems: trends 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Intermittent loss of your television service 36% 45% Total outage of your cable television service 24% 39% Total loss of your internet connection via cable HP UP 37% 46% Ability to access all your channels 37% 50% Total loss of your internet connection via cable 36% 50% Seriously degraded picture quality 30% 49% Intermittent loss of your television service 36% 48% Total outage of your cable television service 27% 40% Any problem not requiring a service call with 13% 25% Male Loss of access to Charter's service 25% 36% Female Ability to access all your channels Intermittent loss of your television service Total loss of your internet connection Seriously degraded picture quality 30% 30% 29% 25% 44% 42% 42% 39% Total outage of your cable television service Loss of access to Charter's service 23% 33% 31% House Others 57% Shows the percent of respondents answering; (n=350)

9 Characteristics of Service Calls: Called Charter? On hold time? Tech Visit Needed? No, 19% Yes, 81% Too long, 30% Not long at all, 13% A reasonable amount of time, 58% No, 32% Yes, 68% Scheduled OK? Arrived on time? Fixed problem? Scheduled OK? As Promised, 35% Never, 7% Never, 15% Always, 42% Always, 62% Too long, 65% Sometimes, 32% Sometimes, 43% Shows the percent of respondents answering; (n=350)

10 Characteristics of Service Calls: Why was problem not fixed? 0% 10% 20% 30% 40% 50% 60% 70% 80% Problem with TV persisted Equipment or infrastructure problems Incompetent technician Unresponsive; poor follow through Problem with Internet persisted 10% 4% 32% 28% 68% How satisfied are you with the way your concerns were addressed? 0% 10% 20% 30% 40% 50% 60% Top 2 boxes Bottom 2 boxes Men, bottom 2 box Women bottom 2 box 26% 31% 40% 54% Shows the percent of respondents answering; (n=varies)

11 Chart 7: Satisfaction Ratings 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% OVERALL SAT ISFACT ION SATISFACT ION WIT H VALUE 24% 48% 59% 35% Any other issue important to you Value you pay for your digital cable television Value you pay for your Extended cable Value you pay for your high definition cable Value you pay for your basic cable television Ability to resolve cable issues with Charter? Picture quality Reliability of television cable service? Reliability of internet cable service? Promptness in responding to your inquiries or The quality of Installation and repair service? Helpfulness of Customer Service? Ability to reach Charter on a toll free phone? Availability of service at a local Charter office? Accuracy of cost information about services The clarity of information about services Availability of the programming you want? Ease of resolving billing issues? Accuracy of your bill? Government Access Programming? 56% 50% 47% 43% 38% 26% 25% 25% 24% 21% 19% 19% 18% 15% 15% 14% 14% 12% 7% 3% 58% Bot 2 box 33% 38% 35% 49% 54% 65% 63% 65% 64% 63% 65% 60% 54% 65% 68% 77% 59% 85% Top 2 Box 37% Shows the percent of respondents answering; (n=350)

12 Trends: Satisfaction ratings 0% 10% 20% 30% 40% 50% 60% HP (purple) vs. UP (green) Ease of resolving billing issues? 8% 15% MEN (blue) vs. WOMEN (pink) Value you pay for your basic cable television Reliability of television cable service? 17% 34% 38% 46% Picture quality 19% 35% Ability to resolve cable issues with Charter? 21% 33% The quality of Installation and repair service? 15% 25% Accuracy of cost information about services 6% 17% (yellow) vs. 65+ (gray) Value you pay for your Extended cable 27% 54% Availability of the programming you want? 8% 18% Shows the percent of respondents answering; (n=varies)

13 Other important issues 0% 5% 10% 15% 20% 25% 30% Better programming, lineup, communication Consistent reception (picture & sound) Cost: Lower or better packaging Service: More responsive, Live operators Another provider, competition Better technology: capability (e.g., HDTV) Better, faster internet Other comments Broader regional coverage on government 1% 4% 6% 14% 14% 20% 22% 27% 27% Shows the percent of respondents answering; (n=113)

14 Contract compliance 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A live representative 90% of time M-F 39% 50% 1% 10% Same day response to all "no picture" problems 39% 40% 1% 20% Next day or sooner response for all other 36% 46% 1% 17% Prorated rebates for loss of service 29% 27% 10% 35% Morning or afternoon scheduling 26% 57% 1% 17% A channel, continuously updating programs 21% v 39% 16% 24% An office within a mile of the Park Cities 18% 51% 2% 29% Single events such as movies 15% 29% 3% 54% Installations in 7 days 11% 48% 1% 40% Parental control option 7% 25% 4% 64% Fair - Poor Excellent - Good Not provided Don't Know Shows the percent of respondents answering; (n=350)

15 Ratings of Desired Features Top 2 boxes More flexibility e.g., á la carte programming 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 31% 41% Ultra-high-speed wireless internet service 27% 36% Digital video recording 20% 32% More movie options Telephone calls using the internet 23% 18% 17% 31% Subscribers Non-subscribers Others named 89% 88% Bottom 2 boxes 0% 10% 20% 30% 40% 50% 60% 70% 80% Telephone calls using the internet 68% 73% More movie options 55% 65% Digital video recording 53% 68% Ultra-high-speed wireless internet service 49% 59% More flexible programming e.g., á la carte 48% 60% Others named 7% 8% Subscribers Non-subscribers Shows the percent of respondents answering; (n=425)

16 Other desired features 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Cost: Lower or better packaging 40% 38% Better programming, lineup, communication of 13% 22% Another provider, competition Consistent reception (picture & sound) Service: More responsive, Live operators, better 12% 12% 12% 13% 17% 17% Flexibility Additional services (DVR, Video conference) Better technology: capability (e.g., HDTV) Better, faster internet 5% 4% 5% 4% 8% 9% 13% 13% Subscribers (n=97) Non-subscribers (n=24)

17 My Advice: What new services or changes to existing services could you recommend 0% 5% 10% 15% 20% 25% 30% Flexibility/ a la Carte Better programming, lineup, communication of changes Cost: Lower or better packaging Service: More responsive, live, better communication Consistent reception (picture & sound) Better technology: capability (e.g., HDTV) and infrastructure Better, faster internet Another provider, competition TV Guide 5% 5% 8% 15% 22% 21% 21% 19% 25% Shows the percent of respondents answering; (n=241)

18 Correlation analysis: what drives attitudes? High Correlation A. Lower Rating / Higher Correlation Drivers C. Higher Rating Higher Correlation Good Work! Correlation Score B. Lower Rating / Lower Correlation Monitor D. Higher Rating / Lower Correlation Evaluate Effort Low Correlation Lower score Mean Score-- Rating Higher Rating

19 Relationship between Overall Satisfaction & Satisfaction with Value OA y = x Correlations - Value S7 O S8 B3 S6S2 S11 S10 S9 S3 S4 B1 R2 S5 Q2 S1 Q1 B2 P4 P1 P3 R1 V3 V4 V2 V5 V P Correlations - Overall

20 Scattergram: Overall Satisfaction Correlation Other V2 V5 V1 V3 V4 S5 R1 R2 Q1 S9 B2S11 S10 Q2 S1 S4 S7 S2 P4 B1 P1 S3 P3 S8 B3 S6 Billing B1 B2 B3 Programming P1 P2 P3 P4 Quality Q1 Q2 Reliability R1 R2 Service S1 S2 S3 S4 S5 S6 S7 S8 S9 S10 S11 Value V1 V2 V3 V4 V5 Other ALL: RESOLVING billing issues? ALL: RESOLVE PROBLEMS ALL: BILL ACCURACY TV PROGRAMMING TV Government Access Programming? ALL: ACCURACY about cost of services available ALL: CLARITY information about services available TV Picture Quality ALL: QUALITY, Installation & repair Internet RELIABILITY TV RELIABILITY ALL: HELPFULNESS, Customer Service ALL: CONTACT by toll free phone? ALL: LOCAL OFFICE ALL: PROMPTNESS, responding to inquiries or calls INITIAL SERVICE CALL: how your concerns were addressed SERVICE CALL: The friendliness & courtesy of technician SERVICE CALL: The technician's knowledge SERVICE CALL: The professionalism of the technician SERVICE CALL: The helpfulness of the call center SERVICE CALL: The thoroughness of the repair, service call SERVICE CALL: That the repair fixed the problem OVERALL VALUE your subscription TV: DIGITAL, VALUE TV: HD VALUE TV: Basic VALUE TV: Extended VALUE ALL: Any other issue important to your subscription? P Satisfaction Score

21 Scattergram: Satisfaction with Value Correlation Oth V2 V3 V5 V4 S5 R1 OS R2 B2 Q1 S9S10 S11 Q2 S1 P3 P4 S S2 S7 P1 B1 S3 S8 B3 P2 S6 Billing B1 B2 B3 Programming P1 P2 P3 P4 Quality Q1 Q2 Reliability R1 R2 Service S1 S2 S3 S4 S5 S6 S7 S8 S9 S10 S11 Value V1 V2 V3 V4 V5 Other ALL: RESOLVING billing issues? ALL: RESOLVE PROBLEMS ALL: BILL ACCURACY TV PROGRAMMING TV Government Access Programming? ALL: ACCURACY about cost of services available ALL: CLARITY information about services available TV Picture Quality ALL: QUALITY, Installation & repair Internet RELIABILITY TV RELIABILITY ALL: HELPFULNESS, Customer Service ALL: CONTACT by toll free phone? ALL: LOCAL OFFICE ALL: PROMPTNESS, responding to inquiries or calls INITIAL SERVICE CALL: how your concerns were addressed SERVICE CALL: The friendliness & courtesy of technician SERVICE CALL: The technician's knowledge SERVICE CALL: The professionalism of the technician SERVICE CALL: The helpfulness of the call center SERVICE CALL: The thoroughness of the repair, service call SERVICE CALL: That the repair fixed the problem OVERALL VALUE your subscription TV: DIGITAL, VALUE TV: HD VALUE TV: Basic VALUE TV: Extended VALUE ALL: Any other issue important to your subscription? Satisfaction Score

22 Correlation Analysis 2005 CODE Attribute Score Correlation SATIS- FACTION Quadrant VALUE Quadrant OA OVERALL SATISFACTION WITH WITH YOUR CABLE SUBSCRIPTION A R1 28. Internet RELIABILITY A A S5 12. INITIAL SERVICE CALL: how your concerns were addressed A A V2 30. TV: DIGITAL, VALUE A A Q1 21. TV Picture Quality A A V4 32. TV: Basic VALUE A A V5 33. TV: Extended VALUE A A B2 35. ALL: RESOLVE PROBLEMS A A S9 18 d. SERVICE CALL: The helpfulness of the call center A B S11 18 f. SERVICE CALL: That the repair fixed the problem A B V1 20. OVERALL VALUE your subscription A S10 18 e. SERVICE CALL: The thoroughness of the repair or service call A B V3 31. TV: HD VALUE B A Other 40. ALL: Any other issue important to your subscription? B B R2 29. TV RELIABILITY C A Q2 27. ALL: QUALITY, Installation & repair C C S1 24. ALL: HELPFULNESS, Customer Service C C S4 37. ALL: PROMPTNESS, responding to inquiries or calls C D S8 18 c. SERVICE CALL: The professionalism of the technician D D S7 18 b. SERVICE CALL: The technician's knowledge D D B3 36. ALL: BILL ACCURACY D D S6 18 a. SERVICE CALL: The friendliness and courtesy of the technician D D S2 25. ALL: CONTACT by toll free phone? D D P4 39. ALL: CLARITY information about services available D C B1 23. ALL: RESOLVING billing issues? D D P1 22. TV PROGRAMMING D C S3 26. ALL: : LOCAL OFFICE D D P3 38. ALL: ACCURACY about cost of services available D C P2 34. TV Government Access Programming? D D

23 Some observations Driver analysis: Long on promises Short on performance Price & flexibility key desired features Weak or incomplete communication Poor follow-through on service and maintenance Attitudes are inconsistent

24 12720 Hillcrest Road Suite (Fax) Dallas, Texas

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