Adoption of stand-alone broadband service jumps to 42% of US broadband households in 1Q 2020, up from 34% in 2017

New consumer research finds the market for broadband service is steady overall, showing high adoption rates and rising average revenue per user (ARPUs), with the adoption rate for stand-alone internet service rising from 34% in 2017 to 42% in 1Q 2020. The average stand-alone internet subscriber now pays $60 per month for service, which increased by 36% from 1Q 2012 to 3Q 2019, while payment for TV + Internet services increased from $107 to only $127 over the same time period. "[S]peed, which correlates with [value-added services (VAS)] adoption, is the primary driver of ARPUs,” said David Drury, Research Director, Parks Associates. COVID-19-related changes in the needs of broadband households indicate that many consumers are likely trying many VAS for the first time, particularly telehealth, video conference, and remote learning tools. The increase in consumer need for these services represents an enormous opportunity to grow these markets even after the crisis passes. The research finds nearly one-half of US broadband households receive at least one value-added service (VAS) from their service provider, but these services are generally included at no additional cost. The most commonly adopted VAS are support, antivirus, streaming video, and Wi-Fi services. AT&T and Suddenlink by Altice subscribers have the highest number of VAS adopted overall, combining both free and paid services.