TDG: Use of Pay-TV On-Demand Fueled by COVID-19 Stay-at-Home Directives
21% of broadband households with three or more children at home upgraded their internet service in April 2020, due largely to spikes in online media behaviors
May 26, 2020 (Los Angeles, CA)
According to new research from The Diffusion Group (TDG), 7% of U.S. broadband households upgraded their service in April 2020, a rate that varies dramatically relative to the number of children under 18 living at home.
Only 4% of broadband households without children under 18 at home upgraded their internet service in April. Children in the home, however, acted as a multiplier. The upgrade rate was 2.4 times greater (at 9.7%) among single-child households, 3.4 times greater (13.7%) among two-child households, and 5.3 times greater (20.9%) among those with three or more children at home; this according to TDG’s recent survey of 1,995 U.S. adult broadband users.
As to the drivers for April upgrades, those with multiple children at home were more likely to:
- Increase use of OTT SVOD services like Netflix (61% vs. 48% among single-child and 44% among no-child households);
- Have more household members using the Internet simultaneously (61% vs. 56% and 38%);
- While working from home, require a faster speed of service (57% vs. 52% and 46%);
- Increase the use of PC/console gaming (50% vs. 44% and 36%); and
- Need immediate access to news related to COVID-19 (32% vs. 26% and 20%).
“Each of these factors rise in significance as the number of users and time spent in-home increases,” notes Michael Greeson, TDG president and principal analyst.
When asked if the importance of a home broadband service had changed since the Coronavirus pandemic was declared, responses were tied strongly to the number of children at home. Fifty-six percent of households without children under 18 at home said that having a broadband connection had become more important during the pandemic (31% “significantly” so). This rate was much higher among single-child households (69% top-2, 42% “significantly” so), and even greater among households with multiple children (72% top-2, 46% “significantly” so).
These insights are part of TDG’s ongoing research to better understand the impact of COVID-19 on media behavior, and how behaviors will shift again as consumers face the “new normal.” For more information about TDG’s consumer research, please contact Laura Allen Phillips.
Laura Allen Phillips