Home Services Dashboard highlights consumer spending on bundled services

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.”

Parks Associates will host the 19th annual CONNECTIONS™ Summit: Business of Smart Home on January 7 in Las Vegas, in partnership with CES®, featuring the session “Navigating the Multifamily IoT Markets” to discuss how smart home technologies can meet the needs of both residents and management in apartment buildings and other multifamily properties. CONNECTIONS™ Summit sponsors are Schneider Electric, Alarm.com, Schlage, Shelly Group, Ubiety Technologies, SmartRent, Eufy, Johnson Controls, Kwikset, and Silicon Labs.

This research is available for purchase. To schedule an interview with an analyst or to request specific data, please contact Mindi Sue Sternblitz-Rubenstein at mindi.sue@parksassociates.com or 972-490-1113.

About Parks Associates

Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com

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