Consumer research study finds standalone broadband increasing and bundles dropping

New consumer research from Parks Associates finds that more than three-fourths of US broadband households report it would be difficult for them to do without broadband service, a finding likely to increase following the widespread COVID-19 outbreak. 360 View: Broadband Services in the US reports that 60% of households would cancel their pay-TV subscription before canceling their broadband service.

The study, conducted in the third quarter of 2019, examines uptake and perception of broadband services among US households.

“Consumers with OTT subscriptions are shifting away from internet bundles, with this group much more likely to have standalone internet service than non-subscribers,” said Steve Nason, Director of Research, Parks Associates. “This finding indicates providers need to adjust their bundling strategies, to include more OTT video services as options. Currently less than one-fifth of subscribers receive an OTT service bundled with their broadband package.”

The research also shows that consumers have little understanding of how much broadband speed their home needs and uses. Demographic factors, such as age, rather than the number of connected platforms in the home, largely determine the choice of broadband speed. Demand for 1+ Gbps services is highest among younger consumers who use connected platforms and services heavily. As social distancing and self-isolating habits increase across the country, the demand for these higher-speed services could spike across all demographics and households.

“Current conditions, with many people working at home and entertaining-in-place, put more stress on the home’s broadband capacity, so service providers need to step up their efforts to help customers better understand their throughput needs,” Nason said. “Customers will be more willing to upgrade their speed to match their increased consumption habits, provided they get the right information and assurances it will meet their needs, which will ultimately lead to higher satisfaction levels.”

360 View: Broadband Services in the US, a Quantified Consumer study, assesses perception of broadband providers, service bundling, adoption of services, upgrades and downgrades of broadband, and perception of broadband speeds received. It also compares perceptions among various groups of consumers, including those with mobile data services.

Parks Associates is launching multiple surveys in April 2020 to quantify the impact of the COVID-19 outbreak on consumer behaviors, purchasing, and usage of connected devices and services, titled COVID-19 Impact on Communications and Entertainment and COVID-19 Impact on Telehealth and Independent Living. For more information on Broadband Services in the US and these other studies, contact [email protected].

To request data or an interview, please contact Rosey Ulpino at [email protected], 972.996.0233.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

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