Daily Research News Online no. 1196 - Broadband The Way Forward in the USA

Broadband The Way Forward in the USA

October 18 2001

Jupiter Media Metrix predicts that 41% of online households in the USA will subscribe to a broadband Internet connection service by 2006 - up from only 9% percent in 2000. In two new Jupiter Research broadband reports, the advice for companies offering services online is to begin preparing now for the coming broadband mainstream in the next year.

Jupiter analysts forecast that the number of households accessing the Internet via broadband connectivity (cable modem, DSL, satellite or fixed wireless) will increase from 5.2 million in 2000 to 35.1 million in 2006, with cable modems being the primary driver.

"Despite the recent failures of several broadband pioneers, and slower growth of the overall online population, broadband will find the masses in the U.S. shortly," said Joe Laszlo, Jupiter senior analyst. "While consumers' awareness of broadband has grown considerably, improved and increased marketing by cable and DSL providers will finally help overcome lingering resistance to the cost of broadband subscriptions. It is absolutely critical for companies with relevant content, products and services to time their business initiatives to reach the anticipated broadband audience."

Other highlights of the research include:

Broadband consumers continue to use their connections more intensively than narrowband consumers, breeding usage differences between the two segments. According to Jupiter analysts, the most significant disparities occur in entertainment and financial services areas. Broadband users are more likely to download music (46 percent of broadband users, 26 percent of dial-up users), listen to music (48 percent, 30 percent respectively) and watch video (36 percent, 18 percent respectively). Similarly, more broadband consumers conduct personal banking (48 percent, 30 percent respectively) and stock-related activities online (35 percent, 23 percent respectively) than dial-up consumers.
Despite differences in entertainment and financial use, Jupiter analysts have found that most popular activities for dial-up and broadband consumers remain very similar. The largest share of both audiences use the Internet for basic purposes, such as e-mail, gathering information and instant messaging.

"Web sites and activities that are popular with the broadband audience indicate that broadband users are becoming increasingly mainstream," Laszlo added. "Marketing strategies built around this audience should still target the young, Internet-savvy and entertainment-oriented audience; but, they should also embrace segments like middle-class or upper-middle-class families that currently use the Internet and individuals that actively manage their finances, such as frequent stock traders."

For further information, visit www.jmm.com

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.