Over 40 percent of U.S. online households expected to connect via broadband by 2006
Oct. 18, 2001--Jupiter Media Metrix, a provider of Internet and new technology analysis and measurement, reports that 41 percent of online households in the U.S. will subscribe to a broadband Internet connection service by 2006.
Jupiter Media Metrix (NASDAQ: JMXI), a provider of Internet and new technology analysis and measurement, reports that 41 percent of online households in the U.S. will subscribe to a broadband Internet connection service by 2006 -- up from nine percent in 2000. 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. In two new Jupiter Research broadband reports, the mandate for companies offering services online is to begin preparing now for the coming broadband mainstream in the next year.
"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."
Additional highlights and forward-looking analysis from the latest Jupiter Research broadband reports -- which offer a look at the state of broadband in the U.S. as well as behaviors and usage patterns of broadband consumers -- 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.
* Jupiter Media Metrix defines broadband user concentration (BUC) as the percentage of a Web site's total unique visitors that connect to a site via broadband. The Web sites with the highest BUCs in the first quarter of 2001 were: Time Warner's Road Runner broadband ISP (52 percent BUC), Citibank.com (38 percent BUC) and GamingClub.com (36 percent BUC). Financial services firms generally have relatively high BUCs (for comparison purposes, wellsfargo.com and chase.com both achieved a BUC of approximately 25 percent). Jupiter analysts advise financial services companies to take note and begin offering tools that are tailored to their large broadband user bases.
"Web sites and activities that are popular with the broadband audience indicate that broadband users are becoming increasingly mainstream," Laszlo said. "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."
About Jupiter Media Metrix:
Jupiter Media Metrix provides Internet and new technology analysis and measurement. For more information or to purchase U.S. Broadband Household Projections: Time Business Initiatives to Reach Growing Broadband Audience or Jupiter Metrics: Broadband 2Q 2001, visit www.jmm.com.