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Research: ARPU for US bundled services increasing

December 19, 2024

Parks Associates’ Home Services Dashboard, an ongoing research project analysing consumer surveys of 8,000 US Internet households, reveals ARPU for traditional services bundled with home Internet increased in Q3 2024 compared to the same quarter in 2023.

Tested traditional service bundles include mobile plans, pay-TV with live TV channels, home phone, and professionally monitored security. Traditional double- to quintuple-play bundles all experienced growth compared to the year prior, with bundles including home phone service growing the most.


“ARPU for bundled services is increasing, while overall adoption of bundles with value-added services such as streaming video or smart adaptive Wi-Fi has declined – as of Q3 2024, only 57 per cent of US Internet household had a value-added bundle, versus 61 per cent in 2023,” said Kristen Hanich, Research Director, Parks Associates.

The decline in traditional bundles with home internet is driven by falling adoption of home phone and traditional pay-TV services, while the shift in value-added services reflects more consumers opting for less expensive, barebones internet service plans.
“Bundling serves a valuable role in increasing customer satisfaction and loyalty, while also driving up ARPU in a way that benefits the customer,” Hanich added. “Consumers tend to get better pricing with bundled services than with separate ones. Decreasing adoption of value-added service bundles suggests growing price sensitivity as well as some customers willing to go without.”

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