U.S. home service bundle ARPU increased in 2024
Wednesday, December 18th, 2024
Parks Associates: ARPU for Double-, Triple-, and Quad-Play Home Service Bundles Shows an Increase in 2024 Compared to 2023
- Home Services Dashboard highlights consumer spending on bundled services
DALLAS — Parks Associates’ Home Services Dashboard, an ongoing research project analyzing consumer surveys of 8,000 US internet households, reveals ARPU for traditional services bundled with home internet increased in 3Q 2024 compared to the same quarter in 2023. Tested traditional service bundles include mobile plans, pay TV with live TV channels, home phone, and professionally monitored security. Traditional double- to quintuple-play bundles all experienced growth compared to the year prior, with bundles including home phone service growing the most.
“ARPU for bundled services is increasing, while overall adoption of bundles with value-added services such as streaming video or smart adaptive Wi-Fi has declined—as of 3Q 2024, only 57% of US internet household had a value-added bundle, versus 61% in 2023,” said Kristen Hanich, Research Director, Parks Associates.
The decline in traditional bundles with home internet is driven by falling adoption of home phone and traditional pay-TV services, while the shift in value-added services reflects more consumers opting for less expensive, barebones internet service plans.
“Bundling serves a valuable role in increasing customer satisfaction and loyalty, while also driving up ARPU in a way that benefits the customer,” Hanich said. “Consumers tend to get better pricing with bundled services than with separate ones. Decreasing adoption of value-added service bundles suggests growing price sensitivity as well as some customers willing to go without.”
Links: Parks Associates
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