Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on digital tech
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- Figure 1: Short, medium and longer-term impact of COVID-19 on digital tech, October 2020
- Opportunities
- Tech’s relevance has jumped amid COVID-19, in both purchases and behaviours
- Cable/satellite TV has become uniquely valuable
- Tech’s health capabilities have been put into the spotlight
- Challenges
- The industry is vulnerable to future economic downturns
- The entertainment industry is facing multiple simultaneous challenges
The Market – Key Takeaways
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- Despite supply challenges, tech companies’ sales grow amid pandemic
- Re-emergence will be difficult, but more predictable than early 2020
Segment Performance
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- Revenues from big tech brands illustrate high digital sales
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- Figure 2: Netflix North American average paying memberships per quarter, March 2018-June 2020
- Figure 3: Amazon revenues from subscription services, Q1 2019-Q2 2020
Market Factors
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- Disposable income is up, but driven by government funding
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- Figure 4: Household disposable income, Q2 2019-Q2 2020
- Figure 5: Household income metrics, Q2 2019-Q2 2020
- Winter weather should increase demand for digital tech
- Supply chain issues impact content and hardware
- Canadians have become familiar with their pandemic lifestyle
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- Figure 6: Worried about pandemic’s effect on lifestyle, March-September 2020
- Impact of COVID-19 on digital tech
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- Figure 7: Short, medium and longer-term impact of COVID-19 on digital tech, October 2020
Companies and Brands – Key Takeaways
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- Companies are trying to help consumers through the pandemic
- Brands have had time to adapt products/services to a COVID-19 world
Competitive Strategies
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- Brands look to develop goodwill with consumers
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- Figure 8: Google Nest Twitter post, May 2020
- Figure 9: Bell Twitter post, March 2020
- Disney+ adjusts releases and viewing options
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- Figure 10: Disney Plus Instagram post, March 2020
- Figure 11: Disney Plus Instagram post, June 2020
- The newest Apple Watch can detect severe COVID-19 symptoms
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- Figure 12: Introducing Apple Watch Series 6 – It Already Does That, September 2020
- COVID-19 forced retailers to think digitally
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- Figure 13: Canadian Tire Twitter post, March 2020
- Figure 14: IKEA Canada Twitter post, May 2020
The Consumer – Key Takeaways
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- Purchases made due to COVID-19
- New tech behaviours since start of pandemic
- How households will adjust their budgets
- Demand for entertainment content
- An intersection of health and tech
Purchases Made Due to COVID-19
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- Nearly half of consumers have purchased tech since closures started
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- Figure 15: Tech purchases made since COVID-related closures, June 2020
- Smartphone sales struggle after COVID-19 lockdowns
- A quarter bought tablets, personal computers or accessories
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- Figure 16: Tablet and computer purchases made since COVID-related closures, by age, June 2020
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- Figure 17: Tablet and computer purchases made since COVID-related closures, by children in household, June 2020
- Video games succeeded with their key consumers
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- Figure 18: Video game purchases made since COVID-related closures, by age and gender, June 2020
- Personal audio helped create more personal space
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- Figure 19: Personal audio purchases made since COVID-related closures, by household location, June 2020
- Smart tech shows consumers were not looking to try new things
New Tech Behaviours since Start of Pandemic
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- Tech became a more important part of consumers lives amid COVID-19
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- Figure 20: Behaviour changes compared to life before COVID-19, June 2020
- Online shopping became a necessary activity during the pandemic
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- Figure 21: Online shopping more compared to life before COVID-19, by age, June 2020
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- Figure 22: Online shopping more compared to life before COVID-19, by age of children in household, June 2020
- Anticipating how online shopping behaviour will change in the future
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- Figure 23: Online shopping more compared to life before COVID-19, by concern about exposure to COVID-19, June 2020
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- Figure 24: eCommerce activities consumers expect to continue after restrictions are loosened, June 2020
- Tech is keeping people connected with others
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- Figure 25: Using video calls and social media more compared to life before COVID-19, by age, June 2020
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- Figure 26: Using video calls and social media more compared to life before COVID-19, by living location, June 2020
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- Figure 27: Stay in touch with Nest Hub Max, June 2020
- Digital tech was a key source for entertainment
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- Figure 28: Using entertainment more compared to life before COVID-19, by age, June 2020
- Video games usage grew, but esports remains niche
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- Figure 29: Playing video games more compared to life before COVID-19, by age and gender, June 2020
- Minimal boost for esports during pro sports shutdown
How Households will Adjust Their Budgets
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- Tech purchase frequency could soon slow down
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- Figure 30: Tech budget cuts, June 2020
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- Figure 31: Tech budget cuts, by household income, June 2020
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- Figure 32: Tech budget cuts, by outlook for personal finances over the next three months, June 2020
- Leveraging low-priced options to mitigate delayed upgrades
- Some consumers will look to cut back on their monthly costs
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- Figure 33: Entertainment/telecom budget cuts, June 2020
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- Figure 34: Entertainment/telecom budget cuts, by outlook on personal finances over the next three months, June 2020
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- Figure 35: Entertainment/telecom budget cuts, by age, June 2020
Demand for Entertainment Content
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- Some consumers are actually running out of things to watch
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- Figure 36: I am running out of video content to watch, by subscription to traditional cable/satellite TV, June 2020
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- Figure 37: I am running out of video content to watch, by age, June 2020
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- Figure 38: Home is where Ignite TV is, November 2018
- Consumers signed up to access more content
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- Figure 39: Sign-ups since start of pandemic, by age, June 2020
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- Figure 40: Sign-ups since start of pandemic, by household location, June 2020
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- Figure 41: Sign-ups since start of pandemic, parents vs non-parents, June 2020
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- Figure 42: Audible Twitter post, March 2020
- Consumers miss their pro sports and movie theatres
- Pent-up demand drove a successful return for pro sports in Canada
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- Figure 43: Miss watching professional sports, by age and gender, June 2020
- Consumers miss movie theatres, but are hesitant to return
An Intersection of Health and Tech
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- Pandemic-specific behaviours have evolved in tech usage
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- Figure 44: Tech behaviours as a result of COVID-19 pandemic, June 2020
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- Figure 45: Cleaning tech devices more than before COVID-19, by concern about exposure to COVID-19, June 2020
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- Figure 46: Tech21 Instagram post, May 2020
- Figure 47: Verilux Instagram post, June 2020
- Using remote connectivity to improve tracing and healthcare
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- Figure 48: Canadian Digital Service Twitter post, July 2020
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- Figure 49: Usage of digital tech in tracing/healthcare, by concern about exposure to COVID-19, June 2020
- Some consumers strived for personal betterment during the pandemic
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- Figure 50: Health behaviour changes compared to life before COVID-19, June 2020
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- Figure 51: Introducing Apple Fitness+, September 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Mintel Trend Drivers
- Abbreviations and terms
- Abbreviations
- Terms
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