While service providers keep upgrading their content offers by adding more channels or by increasing data speed with 5G or fiber technologies, 56% of households believe that their broadband provider does not do enough to ensure that they are on the best value deal. Consumers have become more receptive to bundle offers, including a range of options such as TV, mobile services, cloud storage and other smart home services that make online subscription more attractive than a single internet data plan. Here again, the pandemic has influenced habits by increasing the demand for new types of online services, such as home education, gaming and e-sports or health and wellness, while interest towards standard services such as online TV has declined proportionally3.
While pricing is one of the first drivers for households to reduce their digital usage, the exposure to harmful content and data protection remains a major concern, especially for younger consumers: 43% of users aged 18 to 24 years are very concerned about the inappropriate content that members of their household may encounter online. Providing greater control, better safety measures and a better communication about data privacy are key in the relation between users and service providers.
Digital homes are and will remain an essential part of the online services industry. New technologies such as the metaverse and Internet of Things (IoT) are becoming embedded in more of our home devices and are opening new unexplored fields for connected households. In the end, it is the mix of various factors such as the global economic outlook, the development of new technologies for faster connections and the evolving spectrum of brand-new services to consumers, as well as the growing concerns about our ecological footprint, that will continue to influence the way consumers and their connected households evolve.
To remain at the top of the market, service providers must therefore make sure that their value propositions are attractive and that their interactions with clients are as convenient and smooth as possible.
Read the full study here: https://www.ey.com/en_lu/tmt/decoding-the-digital-home-study