Digital Trends: COVID-19 - Canada - October 2020

OVERVIEW
What you need to know
Key issues covered in this Report
Definition
EXECUTIVE SUMMARY 
Top takeaways
Market overview
Impact of COVID-19 on digital tech
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
Despite supply challenges, tech companies’ sales grow amid pandemic
Re-emergence will be difficult, but more predictable than early 2020
SEGMENT PERFORMANCE
Revenues from big tech brands illustrate high digital sales
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
Disposable income is up, but driven by government funding
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
Figure 6: Worried about pandemic’s effect on lifestyle, March-September 2020
Impact of COVID-19 on digital tech
Figure 7: Short, medium and longer-term impact of COVID-19 on digital tech, October 2020
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Companies are trying to help consumers through the pandemic
Brands have had time to adapt products/services to a COVID-19 world
COMPETITIVE STRATEGIES
Brands look to develop goodwill with consumers
Figure 8: Google Nest Twitter post, May 2020
Figure 9: Bell Twitter post, March 2020
Disney+ adjusts releases and viewing options
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
Figure 12: Introducing Apple Watch Series 6 – It Already Does That, September 2020
COVID-19 forced retailers to think digitally
Figure 13: Canadian Tire Twitter post, March 2020
Figure 14: IKEA Canada Twitter post, May 2020
THE CONSUMER – KEY TAKEAWAYS 
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
Nearly half of consumers have purchased tech since closures started
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
Figure 16: Tablet and computer purchases made since COVID-related closures, by age, June 2020
Figure 17: Tablet and computer purchases made since COVID-related closures, by children in household, June 2020
Video games succeeded with their key consumers
Figure 18: Video game purchases made since COVID-related closures, by age and gender, June 2020
Personal audio helped create more personal space
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
Tech became a more important part of consumers lives amid COVID-19
Figure 20: Behaviour changes compared to life before COVID-19, June 2020
Online shopping became a necessary activity during the pandemic
Figure 21: Online shopping more compared to life before COVID-19, by age, June 2020
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
Figure 23: Online shopping more compared to life before COVID-19, by concern about exposure to COVID-19, June 2020
Figure 24: eCommerce activities consumers expect to continue after restrictions are loosened, June 2020
Tech is keeping people connected with others
Figure 25: Using video calls and social media more compared to life before COVID-19, by age, June 2020
Figure 26: Using video calls and social media more compared to life before COVID-19, by living location, June 2020
Figure 27: Stay in touch with Nest Hub Max, June 2020
Digital tech was a key source for entertainment
Figure 28: Using entertainment more compared to life before COVID-19, by age, June 2020
Video games usage grew, but esports remains niche
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
Tech purchase frequency could soon slow down
Figure 30: Tech budget cuts, June 2020
Figure 31: Tech budget cuts, by household income, June 2020
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
Figure 33: Entertainment/telecom budget cuts, June 2020
Figure 34: Entertainment/telecom budget cuts, by outlook on personal finances over the next three months, June 2020
Figure 35: Entertainment/telecom budget cuts, by age, June 2020
DEMAND FOR ENTERTAINMENT CONTENT
Some consumers are actually running out of things to watch
Figure 36: I am running out of video content to watch, by subscription to traditional cable/satellite TV, June 2020
Figure 37: I am running out of video content to watch, by age, June 2020
Figure 38: Home is where Ignite TV is, November 2018
Consumers signed up to access more content
Figure 39: Sign-ups since start of pandemic, by age, June 2020
Figure 40: Sign-ups since start of pandemic, by household location, June 2020
Figure 41: Sign-ups since start of pandemic, parents vs non-parents, June 2020
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
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
Pandemic-specific behaviours have evolved in tech usage
Figure 44: Tech behaviours as a result of COVID-19 pandemic, June 2020
Figure 45: Cleaning tech devices more than before COVID-19, by concern about exposure to COVID-19, June 2020
Figure 46: Tech21 Instagram post, May 2020
Figure 47: Verilux Instagram post, June 2020
Using remote connectivity to improve tracing and healthcare
Figure 48: Canadian Digital Service Twitter post, July 2020
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
Figure 50: Health behaviour changes compared to life before COVID-19, June 2020
Figure 51: Introducing Apple Fitness+, September 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Mintel Trend Drivers
Abbreviations and terms
Abbreviations
Terms