Standalone broadband increasing, bundles dropping

March 24, 2020
According to Parks Associates, more than three-fourths of U.S. broadband households report it would be difficult for them to do without broadband service, a finding ...

According to Parks Associates, more than three-fourths of U.S. 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. The research house says 60% of households would cancel their pay TV subscription before canceling their broadband service.

"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 indicates 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 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."        

About the Author

BTR Staff

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STEPHEN HARDY
Editorial Director and Associate Publisher
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MATT VINCENT
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KRISTINE COLLINS
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JEAN LAUTER
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