The average American household will do anything they can to lower their monthly expenses even if it means removing services they once used to find other alternatives. According to a survey, fewer homes in America are subscribing to broadband Internet service today compared to just two years ago.
However, what is growing in significant numbers is the amount of people owning smartphones and other mobile devices. More Americans are solely relying on using mobile internet when they want to go online and check their e-mail, use social media, read books, play games, surf the web and catch up with their shows on Netflix. Ultimately, these cable companies may find that consumers are not only choosing to put their dollars to other services like Netflix and Hulu for TV, but they will also choose to use monthly data plans.
A recent survey conducted by Pew Research showed that homes using broadband dropped from 70% to 67% in 2013. About thirteen percent of households stated that they only use their smartphones to access the internet, which is an 8% percent increase from 2013. The drop in consumers could become a big blow for cable companies like AT&T, Time Warner and Comcast if it continues to drop.
If that scenario were to happen, these companies might have to reconsider and change some of their strategies. These companies might start charging more for broadband Internet service, possibly start adding usage caps, and offering online TV. PewResearch noted that there were about 76% of homes that pay a monthly subsection for TV. Of the remaining 24%, 9% dubbed as “cord nevers” never registered for TV in the first place, while 15% decided they stop paying for TV. The primary reason consumers are getting rid of broadband Internet service is because of money.
Among the homes that did not use broadband service, their main reason for not having it was because of the expense. About one-third of people say that the monthly charges for the services was too much money. About 10% of people mentioned they didn’t get Internet service because it was too costly to get a PC. Another 10% of people stated they relied on outside options away from the home (such as Wi-Fi from libraries), and 5% said it was because they were unhappy about the slow speed or because the service was not available in their area.
Nearly 12% of people mentioned there was no need to use broadband Interest when their smartphones could provide them with anything that they wanted. Most people who use mobile devices only were found to be mostly young teens and adults. About twenty percent of people that were between the ages of eighteen to twenty-nine stated they only used their mobile devices. Around 16% of those were between the ages of thirty to forty-nine and 11% of those were between the ages of fifty to sixty-four. About 7% of those sixty-five years and up said they only used one phone with them.
Another study regarding this was conducted by Price Waterhouse Coopers. The study found that while the average package provided consumers with 195 channels, most would only watch about seventeen of those channels. Other than reducing costs, consumers want more flexibility and control there is with choosing packages with just channels that they want. Consumers also feel the same way with the rising expense of internet prices that lack customizable plans to cut down on monthly expenses.
Cutting the internet may not be possible for everyone. Some people decide to stay with broadband service because mobile the internet can become slow. Some also need the internet because they need a hard wired connection for their job. The real question is how many people need internet service at home? In the end, would we truly be saving money or would it shift up in price again due to higher prices and caps from the companies who provide them? Surely there is a way to get out of this cycle for customers who only want to pay for what they want and at a feasible price. It could be a smarter move if companies do just that for higher revenue as more people would happily sign up for that, meaning their numbers would increase instead of losing customers.