technology

Internet, Connectivity Seen As Necessities

Laptop-TV

Access to the Internet and the ability to stay connected whenever and wherever has moved from being a luxury to a necessity, and people are willing to pay for it.

According to research conducted by tech company iYogi Insights, 63% of U.S. households are spending 35% more on technology bills than they do on utilities such as water or electricity. “It has become that crucial need,” Visar Dhar, president of marketing of iYogi, tells Marketing Daily. “It’s no longer electricity.”

Despite consumers’ concerns about rising energy bills (spurred in part by increased powering and charging more electronic devices), the survey of 1,100 people found 60% of consumers subscribe to mobile voice and data packages, with an average monthly expenditure of $94 to pay for mobile services, with an additional $19 a month tacked on for downloaded items such as games, music and video.

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Not surprisingly, the number of connected devices within a home increases with the number of people in a household, Dhar says. Households of one or two people have an average of seven devices. Households with 3 members or more, however, average 10 or 11 devices.

Meanwhile consumers are spending to keep these devices connected at home, with consumers paying an additional $20-$180 a month on home ISP services. About half of the survey respondents are opting for so-called “Triple Play” packages that combine Internet, TV and landline service. Both of these areas are likely to see even further growth as more consumers get more devices.

Another area that is expected to grow over the next year will be money spent on cloud-based backup services.  Already, 30% of the survey respondents are paying for such services, with an average spend of $10 a month. Payments for downloads, particular for in-app purchases, could also see some growth, Dhar says.

“It’s all essential, and there’s no way of scaling back from what we’ve created,” Dhar says.

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