Table of Contents
Executive Summary
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- Overview
- The insights and opportunities
- Impact of digital technology evident across Black consumer segments
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- Figure 1: Black consumer digital segments, February 2019
- Devices must entertain first, provide utility second
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- Figure 2: Household and personal device ownership, total vs Black, February 2019
- Fast, unlimited data is the number one priority, but anticipation of 5G does not match desire
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- Figure 3: 5G technology knowledge and attitudes toward digital technology – Internet, February 2019
- Entertainment is the primary digital activity
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- Figure 4: Hardware used for select online activities – Total vs Black, February 2019
- Online shopping supplements in-store shopping
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- Figure 5: Online activities – Shopping and attitudes toward digital technology, February 2019 and October 2017-November 2018
- What it means
The Market – What You Need to Know
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- Black population is younger than the general market
- Broadband internet access on the rise in Black households, but still lower than the average
- Gap in internet access closed with smartphone data
- Black consumers prefer live TV over DVR programming
The Black Population by the Numbers
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- The non-Hispanic Black population is 41 million
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- Figure 6: US population by race and Hispanic origin, 2013-23
- One third of Black people are Generation Z or younger
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- Figure 7: Black share of generation and generational share of Black population, 2018
- Most Black adults are single
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- Figure 8: Detailed type of US households, by total and Black, 2018
- Nearly one third of Black households include children
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- Figure 9: US households with related children, by race and Hispanic origin of householder, 2018
Market Factors
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- Black middle class on par with the average
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- Figure 10: Total and Black household income distribution, 2017
- Black consumer confidence likely mirrors all consumers
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- Figure 11: Consumer confidence and unemployment, total and Black, 2000-19*
- Black broadband at-home access lags in spite of share gains
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- Figure 12: At-home broadband internet subscription rates, by race and Hispanic origin, 2015-17
- Most kids use the internet at home
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- Figure 13: Percentage of children ages 3-18 who use the internet and usage across various locations, by race and Hispanic origin, 2017
- Black consumers demonstrate greater reliance on smartphone data
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- Figure 14: Smartphone unlimited data plan subscriptions, total and Black, trended 2014-18
Market Perspective
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- Live TV tops home entertainment
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- Figure 15: Black consumers’ content consumption and sharing, October 2017
- Advertising is informative and blends with content
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- Figure 16: Attitudes toward media, hi-tech, and cell phones/smartphones – Advertising, total vs Black, October 2017-November 2018
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- Figure 17: Black consumer attitudes toward advertising, July 2018
- Online shopping supplements, rather than replaces, bricks-and-mortar shopping
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- Figure 18: Attitudes toward media, hi-tech, and cell phones/smartphones – Shopping, total and Black, October 2017-November 2018
Key Trends – What You Need to Know
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- Most Black consumers still subscribe to cable, but cord-cutting is on the rise
- Netflix is the streaming platform of choice among cable subscribers and cord cutters
- Smartphone ownership is on par with the general market, but brand preferences are flipped
- Black consumers prefer entertainment vs informational phone apps
- 5G poised to have a greater impact on Black consumers
What’s Happening in the World of Digital?
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- TV and content viewership
- Most Black consumers still subscribe to cable or satellite . . .
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- Figure 19: Cable and satellite subscribers and cancellers, total vs Black, October 2017-November 2018
- . . . but the share of households that subscribes is falling
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- Figure 20: Cable subscribers and satellite ownership, total vs Black, trended 2014-18
- Cable households a mix of mostly premium channels plus Netflix subscribers
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- Figure 21: Video clip of Netflix’s “What Had Happened Was” talk show featuring Sanaa Lathan and Regina Hall, October 2018
- Figure 22: Premium cable and streaming subscriptions among cable subscribers, total vs Black, October 2017-November 2018
- Black cord cutters rely on paid streaming video for content
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- Figure 23: Alternatives to cable/satellite TV, total vs Black, October 2017-November 2018
- Inexpensive, easy-to-use Amazon Fire TV is the preferred streaming device
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- Figure 24: Streaming device type, total vs Black, October 2017-November 2018
- Mobile phone ownership and behavior
- Black consumers choose Samsung due to cost and flexibility
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- Figure 25: Smartphone ownership, total vs Black and vs 2017, October 2017-November 2018
- Smartphone brand name more important than available features
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- Figure 26: Leading cell phone/smartphone feature ownership and use, total vs Black, October 2017-November 2018
- App usage suggests greater value in entertainment vs tools
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- Figure 27: Top 10 cell phone/smartphone apps usage, total vs Black, October 2017-November 2018
- Free music content trumps paid subscriptions
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- Figure 28: Streaming music app use, total vs Black, October 2017-November 2018
What’s Next?
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- Streaming services fatigue seems inevitable
- 5G is coming, but few understand what that means
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- Figure 29: 5G awareness and knowledge, February 2019
- Instagram’s new check out feature will be a game changer for Black consumers
The Consumer – What You Need to Know
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- Digital user segments based on impact of technology on their lives
- Home is the Black consumer’s entertainment center
- Smartphone and computer ownership on par, yet overindex on entertainment-driven devices
- Content consumption is primary online activity
- Parents are comfortable with kids online after they set guidelines
- Data quality trumps device innovation
Black Consumer Digital Segmentation
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- Digital integration dependant on utility
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- Figure 30: Black consumer digital segmentation, February 2019
- Digital can never replace traditional communication for Light Users
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- Figure 31: Light digital user profile, February 2019
- Services and hardware are utilitarian tools for Moderate Users
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- Figure 32: Moderate digital user profile, February 2019
- Heavy Users’ lives revolve around digital access
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- Figure 33: Heavy digital user profile, February 2019
Household Device Ownership
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- Reliance on home entertainment drives tech ownership
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- Figure 34: Household device ownership, total vs Black, February 2019
- Less expensive and multifunctional home devices growing in popularity
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- Figure 35: Household device ownership, 2017 vs 2019, February 2019
- Heavy Users accumulate devices as they are introduced to market
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- Figure 36: Household device ownership, by Black consumer digital segments, February 2019
- Parents own devices with broader family appeal
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- Figure 37: Household device ownership, by parental status and gender, February 2019
Personal Device Ownership
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- Smartphone ownership enables connection, entertainment, and organization
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- Figure 38: Personal device ownership, total vs Black, February 2019
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- Figure 39: Attitudes regarding cell phones/smartphones, total vs Black, October 2017-November 2018
- Consumers shift to more-efficient devices as they become available
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- Figure 40: Personal device ownership, 2017 vs 2019, February 2019
- A device for every need . . . if you have the income
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- Figure 41: Personal device ownership, by household income, February 2019
- Difference in personal ownership due to cost, rather than desire
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- Figure 42: Personal device ownership, by Black consumer digital segments, February 2019
Methods of Accessing the Internet
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- Anytime, anywhere computing and content consumption dominates access
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- Figure 43: Methods of accessing the internet, total vs Black, February 2019
- Users’ access differs by entertainment preferences
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- Figure 44: Methods of accessing the internet, by Black consumer digital segments, February 2019
- Family entertainment enabled across multiple devices
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- Figure 45: Methods of accessing the internet, by marital status and parental status, February 2019
Hardware Used for Online Activities
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- Content is king online
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- Figure 46: online activities, any device, total vs Black, February 2019
- Smartphones handle all activities, but computers make shopping easier
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- Figure 47: Hardware used for online activities, by device, February 2019
- Smartphone use is determined by its utility and value
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- Figure 48: Hardware used for online activities – Smartphone, by Black consumer digital segments, February 2019
- Computers are equally as important in consuming content
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- Figure 49: Hardware used for online activities – Computer, by Black consumer digital segments, February 2019
- Nearly half own a smart TV, but not all watch video on them
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- Figure 50: Hardware used for online activities – Smart TV, by Black consumer digital segments, February 2019
Family Dynamics and Technology
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- Parents’ dependency on technology extends to the kids
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- Figure 51: Family dynamics and technology, total vs Black, February 2019
- Middle-class kids own their own personal devices
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- Figure 52: Family dynamics and technology, by household income, February 2019
- Parents give older kids autonomy with tech devices due to trust
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- Figure 53: Family dynamics and technology, by kids’ ages, February 2019
- Married parents attempt to balance family interaction with tech access
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- Figure 54: Family dynamics and technology, by marital status, February 2019
Attitudes toward Digital Technology
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- Data quality has greater value vs device innovation
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- Figure 55: Attitudes toward digital technology, February 2019
- Black consumer attitudes toward tech on par with the general market
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- Figure 56: Attitudes toward digital technology, total vs Black, February 2019
- Fast, unlimited data is crucial for Heavy Users
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- Figure 57: Attitudes toward digital technology – Data and internet, by Black consumer digital segments, February 2019
- Device obsolescence is a concern, but not enough to buy new
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- Figure 58: Attitudes toward digital technology – Device and services, by Black consumer digital segments, February 2019
- Digital technology is the hub for entertainment, connection, and efficiency
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- Figure 59: Attitudes toward digital technology – Innovation, by Black consumer digital segments, February 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- Figure 60: Smartphone unlimited data plan subscriptions, total and Black, trended 2014-18
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- Figure 61: Attitudes toward media, hi-tech and cell phones/smartphones – Shopping, total and Black, October 2017-November 2018
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- Figure 62: Attitudes toward media, hi-tech and cell phones/smartphones – Advertising, total vs Black, October 2017-November 2018
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- Figure 63: Cable and satellite subscribers and cancellers, total and Black, October 2017-November 2018
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- Figure 64: Cable subscribers and satellite ownership, total vs Black, trended 2014-18
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- Figure 65: Premium cable and streaming subscriptions among cable subscribers, total vs Black, October 2017-November 2018
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- Figure 66: Alternatives to cable/satellite TV, total vs Black, October 2017-November 2018
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- Figure 67: Streaming device by type, total vs Black, October 2017-November 2018
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- Figure 68: Smartphone ownership, indexed to total and vs 2017, October 2017-November 2018
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- Figure 69: Leading cell phone/smartphone feature ownership and use, total vs Black, October 2017-November 2018
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- Figure 70: Cell phone/smartphone apps usage, total vs Black, October 2017-November 2018
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- Figure 71: Streaming music app use, total vs Black, October 2017-November 2018
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