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Let's Get Digital

July 15 2005

Three surveys out this week highlight the continuing growth of our digital culture. In the US, purchases of hi-tech products are set to increase, while increased uptake of digital services means UK consumers now spend a third more on TV, radio, and mobile communications than in 2004.

'Digital Life in America', a new study of 1,000 Americans conducted by ICR for Ziff Davis Media, found thirty-nine percent of Americans in a high-interest group expecting to purchase three high-end digital electronics products by the end the year. Purchases of most digital electronics products are showing no signs of declining: for example, 16% of Americans plan to buy a digital camera by the end of the year, on top of the 13% who have bought one so far this year. Similarly, sales of digital video recorders, PCs, flat-panel TVs, video games consoles and Internet-based telephone services (VoIP) are all set to grow.

The survey indicates that existing ownership of hi-tech products fuels a desire to buy even more. MP3-player owners, for example, are far more likely to be planning to buy a desktop PC in the next six months than Americans overall (24% compared to 10%) - perhaps to help them download and store music files.

Reflecting a similar embrace of new technology, the second annual Communications Market report from UK telecoms regulator Ofcom reports an increase in the use of broadband, pay-TV, and enhanced mobile services. This growth means that TV, radio and telecoms services now account for 4% of all consumer spending. At an average of more than £1,000 a year, the figure is a third higher (excluding inflation) than in 2000.

Ofcom reports that, between 2000 and 2004, the total number of minutes spent making mobile calls in the UK almost doubled (from 34 billion minutes to 62 billion). During the same period, minutes spent making calls over traditional fixed-line networks fell by 6% (from 174 billion minutes to 164 billion). For the first time, there are now more households with broadband (30%) than dial-up Internet connections, and more than 60% of UK households now receive digital television, with more than 250,000 households switching every month.

Demand for digital radio is also growing. Ofcom states that 36% of adults with access to digital TV listened to radio via their sets, and 19% of those with Internet connections have listened to radio online. The digital radio boom is also explored by the latest Digital Audience Research Tracker (DART) quarterly survey from Ipsos Media. DART, which is based on a 4,000-strong panel, found that the number of UK adults owning a digital radio now stands at 9%, compared with 5% six months ago. 16% are likely to buy a digital radio in the next year, including those who already own at least one.

The perceived benefits of digital radio have changed very little in the last six months. Sound quality comes in top, cited by two thirds of listeners, while interference-free listening, the number of new stations, and the fact that is free are mentioned by around half. The enhanced choice of stations is having a clear impact on radio listening habits: nearly a quarter (23%) of those who can access digital radio told Ipsos that they listen to the radio for longer than they used to.

The companies concerned are online at www.ziffdavis.com , www.ofcom.org.uk and www.ipsosmedia.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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