Residential Broadband Customers: Profiles & Forecasts

Is the solution for so many struggling companies Broadband? Will the ability to offer more content, richer content, more services, and all of them faster, provide the pathway for that yet-to-be identified "killer application"? ... or finally enable a successful revenue generating business model? Everyone is waiting for Broadband to be massively deployed - Internet companies, advertisers, producers, program distributors, equipment companies, cable companies, phone companies. How about the consumers?

The first question is how many consumers are even aware of High Speed Internet access?

The buzz in the industry may be broadband, but the word is barely out on Main Street. With less than 60% of households even aware of high-speed Internet connections marketers have their work cut out. Marketmaps LLC in partnership with CENTRISSM prepared "Residential Broadband Customers: Profiles and Forecasts" to cut through the hype and assess the current state of the broadband market in the U.S. with an outlook for the next five years. CENTRISSM, in its daily national omnibus survey, has been tracking adoption of both cable modems and DSL since the beginning. This research coupled with MarketMaps' compilation of broadband subscriptions by service provider is the foundation for the analysis and conclusions detailed in the report.

Online penetration has been growing steadily in the U.S. The next wave is broadband access. Driven by the desire to speed downloads of Web pages, family pictures and MP3 files and enticed by low monthly subscription fees and free installation, consumers are signing up for cable and DSL Internet access in record numbers. At the end of 3Q00 4.5 million households had some form of broadband access - primarily cable and DSL. By the end of 2000, MarketMaps estimates that 5.6 million households will have faster on-ramps to the Internet.

 

Research from CENTRISSM shows that multiple PC households are much more likely to have broadband connections - opening up opportunities for home networks to share these high-speed connections. The CENTRISSM methodology enables weekly samples of Broadband customers to be cumulated and then statistically projected within a reasonable band of error. While the current installed base does not allow sample levels sufficient to report detailed data, we can discuss some observed demographic and technology skews among Broadband customers.

Compared to ALL households, Broadband households are:

  • More likely to have VCRs and multiple VCRs
  • About four times as likely to have a DVD console player
  • Much more likely to have cable; more likely to have premium services

Compared to all Internet households, Broadband households are:

  • Twice as likely to have a DVD ROM
  • Much more likely to make a purchase on-line and to spend more when they do
  • Two and a half times as likely to have an MP3 player

"Residential Broadband Customers: Profiles and Forecasts" presents additional comparisons and useful metrics to gage the importance of broadband customers to your business.

Demographic Characteristics: Broadband Households vs. All Internet Households

  • Income
  • Children by Age
  • Marital Status
  • Education
  • Employment

Technology & Entertainment Systems and Services: Broadband Households vs. All Internet Households

  • Video
    • VCRs
    • Rent/Purchase VHS
    • Cable TV: Premium services, PPV
    • Home Theater
    • DBS
  • Personal Computers
    • CD-ROM
    • DVD-ROM
    • Internet Access by type
  • Camcorder
  • Video Games

Forecasts: 1999 to 2005

  • Total Online Households
  • Broadband Households

Price: $250

To order a copy or for more information, contact:

Bill Ablondi, MarketMaps, LLC
Phone: (203) 966-4992
Fax: (815) 371-1657
Internet: ablondi@marketmaps.net

 

 


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