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Consumer interest in broadband hits all-time high - report
By Jon Newton,
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Music Industry News - as it happens
Source: Mi2N - April 23, 2002

For the first time in years, the top motivator of dial-up users planning to switch to broadband is a persistent "always on" connection (59%): less important are entertainment-related features such as the ability to view quality video (26%) and listen to audio (15%) says Internet and new technology analysis and measurement firm Jupiter Media Metrix.

While only 16% of US online households subscribe to broadband, more than 24% of dial-up consumers are considering signing up for a broadband service within the next 12 months, says the company in "Broadband Audience: Maximizing Revenue from the New Mainstream." It continues, "Jupiter analysts have found that these dial-up consumers actually favor utility over entertainment, even though companies catering to a broadband audience emphasize entertainment and rich-media applications

"Despite rising prices, demand for high-speed Internet connections is increasing," said Jupiter analyst Dylan Brooks. "Broadband connectivity will soon be the rule, not the exception, for Internet users. For ISPs, the key to reaching this burgeoning nationwide audience is to embrace multiple technologies. Incumbent providers of access and content, not competitive upstarts, will win the broadband battle and make the best partners, even at a premium."

The report went on that broadband has passed a critical inflection point in the US - household subscriptions nearly doubled last year, from just over five million to 10.4 million. Moreover, individual broadband users, including those at work, totaled 38 million in 2001 - 32% of at-home and at-work Internet users. According to Jupiter analysts, broadband households have long been going online: 60% have an online tenure of more than two years. However, households that have come online in the past 24 months make up a growing portion of the broadband audience: 27% in summer 2001 compared with 17% in summer 2000.

While the wealthiest households remain the most likely to have a broadband connection, lower income groups are increasingly entering the fold. Jupiter says nearly one-third of broadband households have annual incomes lower than $50,000 today, up from only 26% two years ago.

Related News from Mi2N:
» Consumer Interest In Getting Broadband Hits All-Time High, Reports Jupiter Media Metrix

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