Consumers who do not bundle their home services reported an increase in their monthly spending from Q3 2023 to Q3 2024, according to Parks Associates’ latest Home Services Dashboard. The research firm’s consumer survey of 8,000 U.S. internet households revealed that the monthly average spend among consumers without bundles was $100 for mobile phone service, $91 for traditional pay-TV service, $71 for internet service, and $53 on security service.
“There are signs indicating an increasingly bifurcated market, as consumers opt for either the lowest cost and most bare-boned service or for valuable bundled options combining both traditional and value-added services,” said Kristen Hanich, Research Director, Parks Associates. “Millions of lower-income households have reduced their internet service spending with some even cutting it entirely as a result of the Affordable Connectivity Program’s (ACP) termination earlier this year, so ISPs are competing both for high-value subscribers and financially constrained cord-cutters.”
Net promoter scores (NPS) for home internet, streaming and traditional pay-TV, and security services experienced slight downturns in the third quarter. Home internet services held a low but still positive score. With many households reevaluating their internet service spending following the end of ACP, service providers have the opportunity to capture these subscribers, provided they can hit the right price point.
“Leading ISPs are introducing new low-cost internet offerings, paired with streaming video and mobile services bundles,” Hanich added. “Consumers overall remain price constrained, and further improvements will depend on how well we’re able to tame inflation.”
The shift in consumer spending patterns highlights a challenging landscape for service providers, who must navigate a divided market while responding to economic pressures. As inflation continues to squeeze household budgets, the appeal of bundled services may grow, offering perceived value through cost savings and convenience. However, attracting financially cautious customers will require more than just competitive pricing—providers need to emphasize flexibility, quality, and reliable service. With increasing fragmentation in consumer preferences, companies that can effectively balance affordability with attractive, value-driven bundles are likely to capture a larger share of the market and foster longer-term customer loyalty.