Wednesday, August 05, 2020

30% of US broadband households intend to avoid large gatherings of people into 2021

New research studies highlight impact on consumer spending, broadband usage, tech purchases, and adoption and usage of home services

New Parks Associates research finds 30% of US broadband households intend to avoid public events and large gatherings of people into 2021, due to concerns of exposure to COVID-19. The research firm is tracking the impact of the pandemic on consumer behaviors, attitudes, and intentions in the consumer and home technology markets through multiple research projects, including the series COVID-19: Impact on Consumer Behavior and Spending. This research reports consumers have cut discretionary spending by 50%, although CE and computer purchases have increased for the first time since 2011.

“Seventy percent of US broadband households believe the economy will need a long time to recover from the COVID-19 pandemic, and only 23% believe the economy will rebound quickly once social-distancing measures are lifted,” said David Drury, Research Director, Parks Associates. “With record-level unemployment and continuing uncertainty about the future, consumers have cut discretionary spending by 50%, although CE and computer purchases have increased for the first time since 2011.  Due to the ongoing COVID-19 pandemic, these changes in behavior will not reverse in the near term, with 30% of households planning to avoid public events and 29% delaying vacations or personal travel till at least 2021.”

While consumers are hesitant about spending, one area with solid purchase intentions is consumer electronics and the increased consumption of video at home. During the COVID-19 crisis, 26% of US broadband households purchased electronics. Parks Associates predicts that with an ongoing global pandemic, and worsening conditions in the United States, strong demand for technology products and services will continue into 2021 and potentially even 2022, including high broadband usage at home to deliver messaging, video calling, and virtual meeting applications; video game downloads; and streaming video services. Currently, 74% of US broadband households subscribe to at least one streaming video service, and almost half of US broadband households subscribe to two or more.

Parks Associates continues to provide timely insight on consumer spending and behavior, including the long-term impact of COVID-19 on consumer spending and the use of technology in the home beyond crisis conditions with its latest research products:


For more information on any of these products, contact sales@parksassociates.com.

To schedule an interview with an analyst or to request specific research data, please contact Rosey Ulpino at rosey@parksassociates.com, 972.996.0233.

 

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 creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webinars, the CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, Connected Health Summit: Engaging Consumers, and Future of Video: OTT, Pay TV, and Digital Media.

http://www.parksassociates.com

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