Half of Swiss consumers asked want to spend less time online and doubt data security on the internet

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• Three quarters of consumers surveyed in ten countries want price guarantees from their providers but are open to premium offers.
• The most important aspects for Swiss consumers when purchasing an internet subscription are price, WiFi coverage, and broadband performance.
• Half of the consumers in Switzerland believe it is impossible to manage personal data securely when using the internet.
• Half of all respondents in Switzerland support "digital detox" and want to actively ensure they spend less time with online devices.

Zurich, 14 November 2024 – "Decoding the Digital Home," the new study by the auditing and consulting firm EY, shows that 40% of consumers surveyed in ten countries are concerned about the amount of time their household members spend online. A full 37% state that they spend more time watching short videos on social networks than dedicating time to their friends or immediate surroundings. As a result, 43% of all surveyed households are interested in doing a "digital detox". In Switzerland, it's even half (49%) who actively want to spend less time with smartphones, computers, and other online-connected devices.

When it comes to online content itself, a critical attitude is noticeable in the surveyed countries: Consumers are very concerned that children might be exposed to harmful content (60%) and often doubt the authenticity of online content (58%). This is also evident among respondents in Switzerland: 54% are very concerned about problematic content for children, and 59% often question the credibility of content. Additionally, more than half (56%) of respondents in all ten countries are concerned that artificial intelligence will make digital content less trustworthy and reliable. Particularly concerned are those over 55 years old (59%), but younger generations are also critical (18- to 24-year-olds: 54%; 25- to 43-year-olds: 55%). In Switzerland, 57% of all respondents share this opinion.

Regarding the security and control over their own data, 29% of all respondents in the countries say they are willing to share their personal data to benefit from tailored online services. At the same time, 47% believe it is impossible to manage personal data securely when using the internet, and only 42% feel they have control over their online data. Consumers in Switzerland express similar views to the average in the ten surveyed countries (41% and 42%). When asked which providers they believe their data is safest with, 40% of Swiss respondents say it is with their mobile phone provider. 20% say their data is safest with their internet provider. Only 6% believe personal data is safe on social media. Roman Haltinner, Cybersecurity Competency Leader at EY in Switzerland, says: "Nearly half of consumers in Switzerland believe that the security of their data is no longer guaranteed. Trust is central to digital interactions. It is essential for collaboration and security and is the foundation for reliable communication in the virtual world. All providers should counter this development with targeted measures and holistic security concepts to restore trust."

For the new study "Decoding the Digital Home", 20,000 consumers in ten countries were surveyed about their attitudes towards technology, media, and telecommunications in the household: The countries include Switzerland, Canada, France, Germany, Italy, South Korea, Spain, Sweden, the United Kingdom, and the USA. André Schaub, Managing Partner, EMEIA Technology, Media & Entertainment, and Telecommunications Industries at EY, says: "As expected, the Swiss market places great value on transparent pricing, reliable performance, and a clear value proposition. Particularly noteworthy is the finding that trust in mobile providers regarding data security is significantly higher in Switzerland than in other surveyed countries. At the same time, the Swiss market shows above-average concern about harmful online content. It is also striking that half of the Swiss population wants a break from smartphones or other internet-enabled devices. This value corresponds to the results in Germany and France but is significantly higher than the values in Sweden and Italy."

Relevant factors for purchase decisions – price is most important for Swiss people

Across all ten surveyed countries, performance requirements are the top priority when it comes to consumers' purchase decisions for broadband internet (46%), followed by transparent pricing models (39%) and guaranteed WiFi coverage in their own homes (38%). In fourth and fifth place are the quality of the home router (33%) and the quality of technical support (29%). For the surveyed consumers in Switzerland, the same aspects are among the top 5, but the order differs slightly: The most important factor for Swiss consumers is a comprehensible pricing model (41%), followed by WiFi coverage in their own home (38%) and broadband internet performance (37%). In fourth and fifth place are the quality of the router (35%) and technical support (30%). Tobias Meyer, Financial Accounting Advisory Services Leader and Head Transaction Accounting & IPO at EY in Switzerland, says: "Swiss consumers are very price-conscious regarding their broadband connection, which is due to the relatively high prices in Switzerland and the good connection reliability across all providers. Providers should therefore consider what additional offers they can use to attract consumers."

Highly dynamic streaming market – cancellations as a feature

The perception of the price-performance ratio for connectivity and content has remained largely constant year-over-year. However, the proportion of households that believe they are getting good value for money from streaming platforms has dropped by five percentage points from 55% to 50%, indicating a price environment where monthly subscription fees have doubled over the past 10 years, with some platforms increasing prices by more than 40% in the past year. Canceling platform subscriptions has also become a feature of the streaming market in recent years. This year, an average of 29% of surveyed households have canceled or plan to cancel at least one streaming subscription, compared to 33% last year. In Switzerland, 26% have canceled their streaming service or plan to do so. At the same time, 33% of Swiss consumers say they have re-subscribed to a previously canceled streaming service.

The decisions to cancel are mainly driven by the need to cut costs (44%) and reduced usage of the service (17%). However, it is noteworthy that a third re-subscribe to one or more previously canceled services – a finding that underscores the importance of "win-back" strategies for streaming platforms.

Fear of price increases – but also acceptance of premium offers

The fear of price increases remains pronounced, with a clear demand for price guarantees. On average, 35% of surveyed households are willing to switch to cheaper broadband offers. Over two-fifths (43%) are open to ad-supported streaming to save on monthly subscription fees, but others are considering premium offers. The demand for aggregated content at a premium price has risen to 44%, compared to 40% last year. On the connectivity side, there are various elements that telecommunications and streaming service providers can combine to create premium offers, with well over a third (38%) of surveyed households indicating they are willing to pay more for broadband with additional privacy, security, and wellness features, good customer service, and backup connectivity in case of network outages.

Comprehensive offer packages becoming more important for consumers

Packages are becoming increasingly important for consumers: 44% of respondents say that the cost-of-living crisis has prompted them to buy connectivity and content from a single provider, compared to 40% last year. Perceived package benefits include cost savings (61%), the convenience of a single bill (60%), and the convenience of a single point of contact for customer service (59%). However, a third of surveyed households (35%) question the benefits of buying TV and broadband from the same provider, highlighting that the advantages of packages continue to be critically viewed. 35% of surveyed households would be willing to forgo fixed broadband in favor of a mobile alternative with a compelling price-performance ratio and performance promise.

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EY’s organization is represented in Switzerland by Ernst & Young Ltd, Basel, with 10 offices across Switzerland, and in Liechtenstein by Ernst & Young AG, Vaduz. In this publication, “EY” and “we” refer to Ernst & Young Ltd, Basel, a member firm of Ernst & Young Global Limited.