And the trend could create a digital divide in the country if the cost of internet services continues to rise locking out those who can’t afford to remain connected.
A study by EY on digital services and connectivity found that 61 per cent of respondents fear price rise in broadband (61 per cent) and pay TV (49 per cent). Nearly half (43 per cent) are concerned they pay too much for content they don’t watch, while 27 per cent plan to cut back on the number of streaming platforms they use.
Following a digital home boom established during COVID-19 pandemic lockdowns, consumers are retreating on connectivity and content needs as they prioritise financial and mental wellbeing. This is according to the latest EY Decoding the digital home study, which surveyed more than 2,500 households in the UK to analyse how the cost-of-living crisis has impacted consumer attitudes toward technology, media and telecoms used in the home.
The study confirmed that the cost-of-living crisis is putting pressure on the digital home. More than half of UK households are concerned that their broadband provider (61 per cent) and TV provider (49 per cent) will increase subscription rates, and 43 per cent believe they pay too much for content they don’t consume.
As we emerge from the pandemic, the study also indicated that digital usage is normalising, with many looking to downsize their online exposure. Thirty-five per cent plan to spend less time online, 27 per cent want to cut the number of streaming platforms they use and 24 per cent are open to reducing the number of connected devices in their homes.
Praveen Shankar, EY UK & Ireland managing partner for Technology, Media and Telecoms (TMT), said with UK economic growth under threat as inflation rises, concerns around price rises for digital services – from broadband to streaming platforms – are pushing consumers to cut back on the digital services they use.
“One potential implication is that while for the past few years investing in the UK’s digital infrastructure has been a priority for the UK government and service providers alike, slowing demand will naturally impact investment,” he said.
“This could have the potential knock-on effect of putting efforts to break the digital divide into a stalemate, further impacting people’s ability to play a role in our increasingly digital-led society. It’s essential now that service providers reframe their strategies to build long-term value for UK consumers and offer compelling propositions that are flexible and reflective of the financial pressures people are facing.”
The trend toward withdrawal from the online world is compounded by an increased focus on security and wellbeing. The findings revealed that the COVID-19 pandemic has exacerbated pre-existing fears around data disclosure, with 43 per cent of households stating that they are more worried about the privacy of personal data than they were before the pandemic.
Mental health concerns associated with online exposure are also top of mind, particularly among younger consumers. Forty-eight per cent of respondents under the age of 25 often think about the negative impact of internet use on wellbeing, and those who are 25-44 years old are also very concerned about what they may encounter online. Overall, 66 per cent of UK households believe that government and regulators should do more to combat harmful online content, well above the average score across surveyed markets (59 per cent).
