2024
9
US Home ISPs and Bundled Services Market Report 2024
2024-08-22T11:04:47+01:00
REP8FD02114_8699_4D29_9692_CC484170553F
3695
175406
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Report
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Consumers by and large aren’t concerned with understanding either details about the internet or how it’s delivered to their home. They just want it to work at an affordable price.
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  8. US Home ISPs and Bundled Services Market Report 2024

US Home ISPs and Bundled Services Market Report 2024

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The US home internet service provider (ISP) market is constantly evolving. This report covers market performance, providing the backdrop for home broadband consumer preferences to enable your strategic insights.

US Home ISPs and Bundled Services Market – Current Landscape

Consumers by and large aren’t concerned with understanding either details about the internet or how it’s delivered to their home. They just want it to work at an affordable price. For providers to sell consumers on things like multi-gig speeds or new delivery methods like fixed wireless access (FWA), they will fare better if they can explain what these things bring to the table in a way that consumers can relate to.

Overall, satisfaction with home internet providers is high, but there is room for improvement. Those who have been with their provider for less time are generally the happiest, as they are still in the new customer incentive honeymoon phase. Lowest satisfaction scores are for price and freebies/loyalty rewards suggesting consumers aren’t seeing the value they’d like.

Interest in bundling is relatively low considering the steep discounts they provide. Consumers are hesitant to give more money to their providers when they are already struggling to see value. Further, they may not want to be locked into a long subscription with an ancillary service, such as a SVOD. Providers are getting smarter by offering both highly customized plans and bundles with more options, such as picking their own rewards.

US Home ISPs and Bundled Services – Market Statistics

  • US ISP market share: Xfinity surpassed the competition in terms of home broadband segment revenue, growing year on year to reach over $25 billion in 2023.
  • Fibre, cable, and FWA usage comparison: Three-quarters get home internet either via cable, fiber, or fixed wireless access (FWA). Cable leads with 41%, followed by fiber, and FWA.
  • Internet terms familiarity: Less than 15% of consumers understand the terms “multi-gig” and “fixed wireless access” (FWA). When trying to sell on FWA, multi-gig speeds and similar features, brands need an additional approach.

US Home ISPs and Bundled Services Market Report – What’s Inside?

 

Key Topics Analyzed in the Report

  • Home internet service type and provider
  • Familiarity with internet terms
  • Average monthly spend on home internet
  • Bundling with other services
  • Satisfaction with home internet
  • Loyalty to providers and triggers to switch
  • Attitudes about home internet

 

Report Scope

Mintel defined the home ISPs market based on the Bureau of Economic Analysis’s internet service providers category.

Meet the Expert Behind the Analysis

This report was written by Jenni Nelson. Jenni joined Mintel in November 2022 with 15 years of experience helping clients understand the ever-evolving media landscape; and how these changes influence culture and impact consumers’ lives. She has Bachelor’s Degrees in both Communications and Psychology from Hamline University, and a Master’s Degree in Media Ecology from New York University.

Most consumers aren’t concerned with their home internet as long as it works and is affordable. Low satisfaction on price and freebies/loyal rewards is impacting bundling and consumers struggle to see the overall value.

Jenni Nelson - Media and Technology Analyst
Jenni Nelson

Consumer Insights Analyst, Tech, Media & Entertainment

Collapse All
  1. Executive Summary

    • What you need to know
    • What consumers want and why
    • A slow but steady increase in consumer spending on internet services brings the market to $115.6 billion in 2024
    • Opportunities
  2. Consumer Insights

    • Consumer fast facts
    • The home ISPs and bundled services consumer: fast facts
    • Profiles of cable, fiber, and FWA users
    • Key demographics of cable, fiber and FWA users
    • Familiarity with internet-related terms
    • Low familiarity with internet-related terms means brands need new approaches when promoting them
    • Graph 1: internet term familiarity, 2024
    • Brands are doing better speaking in terms consumers can relate to
    • Men more familiar with terms overall, but age factors into which terms resonate
    • Graph 2: internet term familiarity, by gender, 2024
    • Multi-gig consideration is highest among younger men, whether they know what it is or not
    • Graph 3: “I would consider paying extra for a multi-gig plan” (% any agree), by age and gender, 2024
    • Graph 4: “I know how fast my internet speeds are” (% any agree), by age and gender, 2024
    • Home internet service type and provider
    • FWA must overcome limited availability and low familiarity to grow share
    • Graph 5: home ISP type, 2024
    • Older consumers stick with cable
    • Graph 6: home ISP type, by age, 2024
    • Drop in passivity toward home internet is an opportunity for providers
    • Graph 7: select home internet attitudes (% any agree), by age, 2024
    • Loyalty to home internet providers
    • Could the growth of smart home devices prompt consumers to stay with a provider for longer?
    • Graph 8: home internet provider tenure, 2024
    • Some consumers turn to more-economical delivery methods as the cost of living increases
    • Graph 9: home internet provider tenure, by ISP type, 2024
    • Legacy telecoms have an advantage due to a larger footprint
    • Graph 10: home internet provider tenure, by provider, 2024
    • Older consumers are the most tenured home internet customers
    • Graph 11: home internet provider tenure, by age, 2024
    • Younger men are the easiest customer to get, but the hardest to keep
    • Graph 12: provider-related attitudes (% any agree), by age, 2024
    • Triggers to switch home internet
    • High housing costs mean moving is less of a trigger to switch providers
    • Graph 13: triggers to switch home internet providers, 2024
    • Brand positioning can play a role when consumers look to switch providers
    • Graph 14: triggers to switch home internet providers (select), by provider, 2024
    • Low latency is now part of the optimization equation
    • Graph 15: switch home internet providers because of faster internet with a competitor, by age, 2024
    • Younger consumers most enticed by speed and new customer incentives
    • Graph 16: select home internet attitudes (% any agree), by age, 2024
    • Average monthly spend on home internet
    • Fiber providers will need to keep prices in check to see a return on investment
    • Graph 17: approximate monthly payment for home internet service, by ISP type, 2024
    • T-Mobile can take FWA so far, looking to fiber for the future
    • Graph 18: approximate monthly payment for home internet service, by home internet provider, 2024
    • Greater transparency in pricing among a provider’s users could assure customers their rates are in line with other subscribers
    • Graph 19: price-related attitudes (% any agree), by age, 2024
    • Bundling with other services
    • Despite savings, consumers are reluctant to give more money to their ISP, keeping bundling interest relatively low
    • Perpetual cycle of offering bundles and upping the ante
    • Graph 20: services considered for bundling with home internet provider, by gender, 2024
    • T-Mobile could lead the way in mobile and home internet bundling
    • Graph 21: services considered for bundling with home internet provider, by select provider, 2024
    • Something for everyone will attract a wider array of consumers
    • Graph 22: services considered for bundling with home internet provider, by financial status, 2024
    • Internet providers’ TV platforms continually evolve and are a benefit all around
    • Branded TV platforms are common among internet providers
    • Overall satisfaction with home internet
    • Overall satisfaction holds steady, and more common among younger consumers
    • Graph 23: overall satisfaction with home internet provider, by age, 2024
    • Overall satisfaction is correlated to recommendations based on delivery method
    • Graph 24: overall satisfaction with home internet provider (% any satisfied), by internet delivery type, 2024
    • Providers need to excel in all areas for overall satisfaction
    • Graph 25: overall satisfaction with home internet provider (% any satisfied), by provider, 2024
    • Satisfaction with aspects of primary home internet service provider
    • Most aspects garner robust satisfaction
    • Graph 26: satisfaction with aspects of primary home internet service provider, 2024
    • Internet connection reliability is the most important driver of satisfaction, followed by speed and customer service and then price
    • Graph 27: key driver analysis – overall satisfaction with home internet provider, 2024
    • Providers need to prioritize price and billing contracts to increase overall satisfaction
    • Cable users are not seeing value in their home internet service
    • Graph 28: satisfaction with speed, connection and price (% any satisfied), by ISP type, 2024
    • Make plans geared toward seniors easier to find and understand
    • Graph 29: satisfaction with speed, connection and price (% any satisfied), by age, 2024
    • As digital devices and systems are added to the home, pro-installation could become more common
    • Graph 30: satisfaction with installation and equipment (% any satisfied), by ISP type, 2024
    • Verizon and T-Mobile lead in installation and equipment satisfaction, Xfinity has work to do
    • Graph 31: satisfaction with installation and equipment (% any satisfied), by provider, 2024
    • Language barriers likely keeping satisfaction low for Asian consumers
    • Graph 32: satisfaction with installation and equipment (% any satisfied), by race, 2024
    • Work with customers to determine billing pain points
    • Graph 33: satisfaction with billing and data limits (% any satisfied), by provider, 2024
    • Incremental changes to various service factors can effect increased satisfaction
    • Graph 34: satisfaction with billing and data limits (% any satisfied), by age, 2024
    • Armed with options, urbanites are more satisfied with data limits and billing factors
    • Graph 35: satisfaction with billing and data limits (% any satisfied), by area, 2024
    • Give current customers more reasons to stay with better customer service
    • Graph 36: satisfaction with customer service and loyalty rewards (% any satisfied), by provider, 2024
    • Overcome consumer dissatisfaction with automatic rewards
    • Graph 37: satisfaction with customer service and loyalty rewards (% any satisfied), by age, 2024
    • Long-time customers not feeling the love from their providers
    • Graph 38: satisfaction with customer service and loyalty rewards (% any satisfied), by tenure, 2024
  3. Competitive Strategies

    • Launch activity and innovation
    • Verizon debuts myHome, the wired counterpart to it’s mobile myPlan offering
    • AT&T debuts a FWA product in late 2023
    • As ACP ended, many providers are offering replacement programs
    • Marketing and advertising
    • Optimum aims to stand apart from the giants
    • Rebranding the bundle
    • Price locks an increasingly common, but risky, tactic
  4. The Market

    • Market context
    • Market drivers
    • Data usage in the home continues to increase
    • Graph 39: average monthly household broadband consumption (gigabytes), Q4 2019-23
    • Annual inflation sits at 3% as of June – the lowest it has been in over three years
    • Graph 40: headline CPI and shelter CPI, 2021-24
    • Consumer sentiment remains down, but is expected to rebound soon
    • Graph 41: consumer sentiment index, 2022-24
    • Nearly 40% of consumers have seen their financial situations change for the better in the past year, but many still need to economize
    • Graph 42: change in financial situation over the past 12 months, 2024
    • Market size and forecast
    • Pandemic-era growth in home internet spending continues slowly but steadily
    • Slow but steady growth, as providers must keep prices in check
    • Total consumer expenditure and forecast of internet service providers, at current prices, 2019-29
    • Total consumer expenditure and forecast of internet service providers, at inflation-adjusted prices, 2019-29
    • Brand share and revenue
    • Segment revenue and customer count for top internet providers
  5. Appendix

    • Market definition
    • Consumer research questions
    • Consumer research methodology
    • Generations
    • Financial status descriptions
    • Abbreviations and terms
    • Key driver analysis
    • Forecast
    • Forecast fan chart

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