Internet is an essential feature in the modern home, due in large part to the adoption of smart-home technologies. There are already at least 7 billion connected IoT devices on the market today, and 30% of consumers claim to have purchased or installed a home-related smart technology product within the past year. According to a recent survey conducted by Fluent, 51% of Americans use and pay for Internet service at home, making this the most used, and most essential At-Home Service.
Consumers are more likely than not to subscribe to supplementary At-Home Services; only 9% of consumers are Internet-only subscribers. In addition to supporting smart home technologies, Internet access in the household has also given way to the rise of other Internet-enabled services. For example, streaming video services continue to rise in popularity as consumers seek out new ways to consume quality content.
Today, 17% of Americans reportedly do not pay to use cable or satellite in the home, though they still pay for other At-Home Services. This is not altogether surprising, as Digital TV Research expects the number of US traditional pay TV subscribers to decline to 81 million in 2024, from 91 million in 2018 and 105 million in 2010. However, Technology Laggards, those who are the last or among the last to adopt, are 21% more likely to subscribe to a cable service than Technology Early Adopters.
Still, in many cases, those who have not yet cut the cord are also supplementing traditional paid television services with streaming video subscriptions. 20% of Americans that pay for cable also pay for a movie streaming service, followed closely by 19% of satellite/dish users. According to consumers, the top reasons for subscribing to a movie streaming service include identifying it as a service used most often in the household (35%), considering it a lower cost entertainment option (24%), and using the service to reduce stress and unwind (23%).
Price is a primary consideration for consumers when choosing paid entertainment services. The average standard price for a monthly Internet and cable package is between $100 and $124, and while 32% of consumers use cable, only 12% view it as an essential home service. To offer added value to the consumer, Internet service providers should bundle their offerings with streaming service subscriptions to retain and attract new customers. In partnership with streaming services companies, Internet service providers can meet the needs of consumers who are frustrated by expensive cable bills and looking for lower-cost entertainment options.