Rising Home Service Costs: Insights from Parks Associates’ 2023 Dashboard

Parks Associates’ latest report, the Home Services Dashboard, states that US consumers not bundling home services will see their monthly expenses rise from Q3 2023 to Q3 2024. A survey of 8,000 US internet households showed an average spending of $100 for mobile phone service, $91 for traditional pay-TV, $71 for internet service, and $53 for security service among those without bundles.

The Home Services Dashboard highlights key metrics for companies in the communications sector. More households are choosing to bundle their internet service with other services, mainly mobile packages.

Kristen Hanich, Research Director at Parks Associates, noted a shift in the market. Consumers are either opting for low-cost, minimal services or valuable bundled packages that combine traditional and additional services. Many low-income households have reduced their internet spending or stopped it altogether after the Affordable Connectivity Programme ended earlier this year. Internet Service Providers (ISPs) now compete for high-value subscribers and budget-conscious customers.

Net promoter scores (NPS) in home internet, streaming, traditional pay-TV, and security services showed slight declines in Q3. Although home internet services maintained a low but positive score, households are reevaluating their internet expenses. Service providers can attract these subscribers if they set competitive prices.

Hanich mentioned that leading ISPs are launching new low-cost internet plans alongside streaming and mobile service bundles. Overall, consumers feel budget pressure. The market’s future depends on addressing inflation effectively.