2021
9
US Home ISPs and Bundled Services Market Report 2021
2021-04-22T04:11:01+01:00
OX1044745
3695
136921
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Report
en_GB
 “Home internet is among the most important services for US consumers, and access to high-speed reliable home internet has been put front and center due to the COVID-19 pandemic in…

US Home ISPs and Bundled Services Market Report 2021

£ 3,695 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the US Home ISPs and Bundled Services market, including the behaviours, preferences and habits of the consumer.

With 8 in 10 households having home broadband internet access and with the US market worth $100 billion, the internet was already considered a necessity by most consumers. However, the COVID-19 lockdowns throughout 2020 boosted its importance as many were forced to work from home, as well as attend homeschool, and use the internet to connect with friends and family.

Increased streaming, video calls and general day-to-day usage has meant that 71% of consumers now agree that their home internet has become more important to them since the start of the pandemic. However, with increased economic pressures thanks to job losses and the predicted post-pandemic recession, people may begin to cut back on non-essential costs, seeing an overall lowering of revenue for ISPs.

Brands will have to innovate new TV and broadband bundles to be more affordable, preventing people from cutting their subscriptions. The expansion of 5G networks and compatible devices may also be used to help increase internet speeds and compete with cable and fibre services.

Read on to discover more details or take a look at all of our US Technology and Telecoms market research.

Quickly understand

  • The impact of COVID-19 on consumer behavior and ISPs.
  • Shifts in the type of home internet and bundled services consumers have for their household.
  • Home internet service satisfaction levels and the factors driving satisfaction.
  • Consumer attitudes toward home internet service.

Covered in this report

Brands: Version, Xfinity, AT&T, T-Mobile.

Expert analysis from a specialist in the field

Written by Buddy Lo, a leading analyst in the Technology sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Home internet is among the most important services for us consumers, and access to high-speed reliable home internet has been put front and center due to the COVID-19 pandemic in 2020. Internet access is considered such a necessity there are calls to classify broadband access as a utility. Demand for high-speed internet will continue to increase, and consumers will seek the best possible internet speeds they can afford. Providers must continue to innovate and bring faster, reliable internet to markets or lose out to emerging competitors.

Buddy Lo
Senior Technology and Consumer Electronics Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Definition
          • Market context
            • Economic and other assumptions
              • COVID-19: US context
              • Executive Summary

                  • Top takeaways
                    • Market overview
                      • Figure 1: Total US sales and forecast home communication services and paid TV services, at current prices, 2015-25
                    • Impact of COVID-19 on home ISPs and bundled services
                      • Figure 2: Short-, medium- and long-term impact of COVID-19 on digital services, home internet and pay TV, April 2021
                    • Opportunities and challenges
                      • “Wired, wireless, cable, fiber, satellite… I don’t care just make it fast”
                        • Figure 3: Attitudes toward home internet service – Internet speeds, January 2021
                      • Streaming bundles more attractive than pay TV bundles
                        • Figure 4: Paid TV behaviors, January 2021
                      • Loyalty/rewards programs are a white space for the industry to improve
                        • Figure 5: Home internet satisfaction, January 2021
                    • The Market – Key Takeaways

                      • Home internet more important than ever for consumers
                        • Cord cutting will continue to hurt ISP revenues from pay TV
                          • Regulations could impact home ISPs
                            • Remote work has almost doubled since the pandemic
                              • Demand for data will only increase
                              • Market Size and Forecast

                                  • Declines in paid TV spending outpaces gains in home internet spending
                                    • Figure 6: Total US sales and forecast of home communication services and paid TV services, at current prices, 2015-25
                                    • Figure 7: Total US sales and forecast of home communication services and paid TV services, at current prices, 2015-25
                                  • Impact of COVID-19 on home ISPs and bundled services
                                    • Figure 8: Short-, medium- and long-term impact of COVID-19 on digital services, home internet and pay TV, April 2021
                                  • Learnings from the Great Recession
                                  • Segment Performance

                                    • Communication services will continue to draw more revenue
                                      • Figure 9: Total US sales and fan chart forecast of home communication services, at current prices, 2015-25
                                      • Figure 10: Total US sales and forecast of home communication services, at current prices, 2015-25
                                    • Cord cutting erodes telecom and cable revenues
                                      • Figure 11: Total US sales and fan chart forecast of paid TV services, at current prices, 2015-25
                                      • Figure 12: Total US sales and forecast of paid TV services, at current prices, 2015-25
                                  • Market Factors

                                    • Net neutrality discussions return with Biden administration
                                      • Efforts to narrow the digital divide could increase internet access
                                        • Growth in remote work elevates importance of high-speed internet at home
                                          • Fiber expansion increases reach of ultra-high-speed internet
                                            • Household bandwidth needs will escalate beyond today’s standard data limits
                                              • More sports programming licensed for streaming services
                                              • Companies and Brands – Key Takeaways

                                                • Xfinity leads with one in five households subscribing
                                                  • T-Mobile trials 5G fixed wireless service
                                                    • Marketing geared toward young adults moving out should be a good short- term strategy
                                                    • Market Share

                                                      • Xfinity grows market share to over one fifth of households
                                                        • Figure 13: Home ISP, 2015-20
                                                    • Competitive Strategies

                                                      • More providers promoting home and mobile bundle packages
                                                        • Figure 14: Verizon Fios customer Verizon Wireless direct mail promotion, March 2021
                                                        • Figure 15: Xfinity Internet and Mobile bundle direct mail promotion, February 2021
                                                      • Bundled streaming services becoming a staple of the industry
                                                        • Figure 16: AT&T Fiber-fast 1 Gig Internet email promotion, February 2021
                                                        • Figure 17: Xfinity Flex direct mail promotion, March 2021
                                                        • Figure 18: Verizon Fios Home Internet online ad, December 2020
                                                        • Figure 19: Verizon Fios discovery+ direct mail promotion, March 2021
                                                      • Services need to adapt to increasing bandwidth needs
                                                      • Market Opportunities

                                                        • 5G fixed wireless poses new opportunity for underserved markets
                                                          • Figure 20: T-Mobile Home Internet print advertisement, December 2020
                                                        • Young adults moving out from home could turn into new subscribers
                                                          • Figure 21: Unemployment rate, by young adult age groups, January 2020-January 2021
                                                      • The Consumer – Key Takeaways

                                                        • Younger consumers exploring alternative services
                                                          • TV bundles dwindle as cord cutting continues
                                                            • Majority of consumers are satisfied with their home internet
                                                              • Larger households show more inclination to changing services
                                                                • Younger consumers show more variance in home internet usage
                                                                  • Sports programming can mitigate cord cutting among younger men
                                                                    • COVID-19 has elevated the importance of home internet for consumers
                                                                      • Four distinct consumer segments identified based on attitudes toward home internet
                                                                      • The Consumer – Trend Drivers

                                                                            • Figure 22: Mintel Trend Drivers and supporting Pillars – Technology, Value and Experiences
                                                                        • Home Internet Source

                                                                          • Cable remains the leading source of home internet
                                                                            • Figure 23: Home internet source, January 2021
                                                                            • Figure 24: Home internet source, July 2019 and January 2021
                                                                          • Younger consumers exploring newer home broadband solutions
                                                                            • Figure 25: Home internet source, by age, January 2021
                                                                          • Home internet choice boils down to cost and availability
                                                                            • Figure 26: Home internet source, by household income, January 2021
                                                                            • Figure 27: Home internet source, by area, January 2021
                                                                            • Figure 28: AT&T Fixed Wireless direct mail promotion, March 2021
                                                                        • Bundled Services

                                                                          • Service providers losing paid TV bundlers but gaining others
                                                                            • Figure 29: Bundled services, January 2021
                                                                            • Figure 30: Bundled services, July 2019-January 2021
                                                                          • Streaming bundles gaining among younger consumers
                                                                              • Figure 31: Bundled services – Paid TV and streaming services, by age, January 2021
                                                                            • Mobile service bundles are becoming more prominent in the market
                                                                              • Figure 32: Bundled services – Mobile phone service and data, by age, January 2021
                                                                            • Parents four times as likely to bundle home security as non-parents
                                                                              • Figure 33: Bundled services – Home security, by parental status, January 2021
                                                                            • Fiber optic internet users lead mobile phone bundles
                                                                              • Figure 34: Bundled services – Mobile phone service and data, by home internet source, January 2021
                                                                          • Home Internet Satisfaction

                                                                            • Three in four subscribers are satisfied with their home internet provider
                                                                              • Figure 35: Overall home internet satisfaction, January 2021
                                                                            • Vast majority satisfied with internet speeds – half satisfied with pricing
                                                                              • Figure 36: Home internet satisfaction, January 2021
                                                                            • Internet speed, reliability and customer service drive overall satisfaction
                                                                              • Figure 37: Level of satisfaction with home internet provider – Key driver output, January 2021
                                                                              • Figure 38: Level of satisfaction with home internet provider – Key driver output, January 2021
                                                                            • Methodology
                                                                              • Loyalty programs are an opportunity for improvement
                                                                                • Figure 39: Key drivers of satisfaction with home internet provider, January 2021
                                                                              • Fiber’s leading performance leads to higher overall satisfaction
                                                                                • Figure 40: Overall home internet satisfaction, by home internet source, January 2021
                                                                                • Figure 41: Home internet satisfaction, by home internet source, January 2021
                                                                            • Home Internet Attitudes and Perceptions

                                                                              • Nearly a three in 10 consumers considering switching providers
                                                                                • Figure 42: Home internet behaviors, January 2021
                                                                              • Wireless broadband subscribers are sensitive to total data usage
                                                                                • Figure 43: Home internet behaviors – Data usage, by home internet source, January 2021
                                                                              • Larger households show more dynamic tendencies with ISPs
                                                                                • Figure 44: Home internet behaviors, by number of people in the household, January 2021
                                                                            • Top Home Internet Uses

                                                                              • General web browsing leads home internet usage
                                                                                • Figure 45: Top home internet uses, by rank, January 2021
                                                                              • Younger consumers more varied in home internet usage
                                                                                • Figure 46: Top home internet uses, by age, January 2021
                                                                              • Gamers more likely to seek faster internet
                                                                                • Figure 47: Home internet behaviors – Faster internet, by top home internet uses, January 2021
                                                                                • Figure 48: Verizon Fios direct mail promotion, November 2020
                                                                                • Figure 49: Xfinity Performance Select Internet direct mail promotion, January 2021
                                                                            • Paid TV Behaviors

                                                                              • Paid TV continues to dwindle in age of on-demand video streaming
                                                                                • Figure 50: Paid TV behaviors, January 2021
                                                                              • Younger consumers lead the shift away from paid TV
                                                                                • Figure 51: Paid TV behaviors, by age, January 2021
                                                                              • Sports programming can mitigate cancellations among younger men
                                                                                • Figure 52: Paid TV behaviors, by age and gender, January 2021
                                                                            • Attitudes toward Home Internet Service

                                                                              • COVID-19 elevated importance of home internet for consumers
                                                                                • Figure 53: Attitudes toward home internet service – COVID-19, January 2021
                                                                              • Home security has appeal among half of consumers
                                                                                • Figure 54: Attitudes toward home internet service – Home security, January 2021
                                                                                • Figure 55: Attitudes toward home internet service – Home security, January 2021
                                                                              • Internet speed the primary factor for ISP decision making
                                                                                • Figure 56: Attitudes toward home internet service – Internet speeds, January 2021
                                                                              • Consumers are less concerned with delivery method than performance
                                                                                • Figure 57: Attitudes toward home internet service – Internet speeds, January 2021
                                                                                • Figure 58: Attitudes toward home internet service – High-speed options, by area, January 2021
                                                                            • Consumer Segmentation – Attitudes toward Home Internet Service

                                                                                  • Figure 59: Attitudes toward home internet service consumer segments, January 2021
                                                                                • Home internet sources by segments
                                                                                  • Figure 60: Home internet source, by consumer segments of attitudes toward home internet service, January 2021
                                                                                • Upgraders (22%)
                                                                                  • Characteristics
                                                                                    • Figure 61: Profile of Upgraders, January 2021
                                                                                  • Opportunities
                                                                                      • Figure 62: Home internet attitudes and perceptions, by consumer segments of attitudes toward home internet service, January 2021
                                                                                      • Figure 63: Bundled services – Home security, by consumer segments of attitudes toward home internet service, January 2021
                                                                                    • Disgruntled Customers (23%)
                                                                                      • Characteristics
                                                                                        • Figure 64: Profile of Disgruntled Customers, January 2021
                                                                                        • Figure 65: Home internet satisfaction, by consumer segments of attitudes toward home internet service, January 2021
                                                                                        • Figure 66: Home internet dissatisfaction, by consumer segments of attitudes toward home internet service, January 2021
                                                                                      • Opportunities
                                                                                        • Figure 67: Attitudes toward home internet service – High-speed options, by consumer segments of attitudes toward home internet service, January 2021
                                                                                      • Speed Seekers (25%)
                                                                                        • Characteristics
                                                                                          • Figure 68: Profile of Speed Seekers, January 2021
                                                                                        • Opportunities
                                                                                          • Figure 69: Attitudes toward home internet service – Speed vs price, by consumer segments of attitudes toward home internet service, January 2021
                                                                                        • Disconnectors (30%)
                                                                                          • Characteristics
                                                                                            • Figure 70: Profile of Disconnectors, January 2021
                                                                                          • Opportunities
                                                                                          • Appendix – Data Sources and Abbreviations

                                                                                            • Data sources
                                                                                              • Sales data
                                                                                                • Forecast
                                                                                                  • Consumer survey data
                                                                                                    • Marketing creative
                                                                                                      • Abbreviations and terms
                                                                                                        • Abbreviations
                                                                                                          • Terms
                                                                                                          • Appendix – The Market

                                                                                                            • Inflation adjusted tables
                                                                                                              • Figure 71: Total US sales and forecast of home communication services and paid TV services, at inflation-adjusted prices, 2015-25
                                                                                                              • Figure 72: Total US sales and forecast of home communication services, at inflation-adjusted prices, 2015-25
                                                                                                              • Figure 73: Total US sales and forecast of pay TV services, at inflation-adjusted prices, 2015-25
                                                                                                          • Appendix –Key Driver Analysis

                                                                                                              • Interpretation of results
                                                                                                                • Figure 74: Level of satisfaction with home internet provider – Key driver output, January 2021

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