CONSUMER INTEREST IN GETTING BROADBAND HITS ALL-TIME HIGH, REPORTS JUPITER MEDIA METRIX
FOR MORE INFORMATION:
Ryan Oettinger
917.534.6226
roettinger@jmm.com
Roughly 1/3 of at-home and at-work Internet users in the U.S. connect via
broadband
Road Runner emerges as dominant U.S. consumer broadband brand
NEW YORK, April 23, 2002 – Jupiter Media Metrix (NASDAQ: JMXI), the global
leader in Internet and new technology analysis and measurement, today
reports that while only 16 percent of U.S. online households subscribe to
broadband, more than 24 percent of dial-up consumers are considering signing
up for a broadband service within the next 12 months. 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. According to a new
Jupiter Research Report, titled “Broadband Audience: Maximizing Revenue
from the New Mainstream,” 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 percent). Less important are entertainment-related features
such as the ability to view quality video (26 percent) and listen to audio
(15 percent).
“Despite rising prices, demand for high-speed Internet connections is
increasing,” said Dylan Brooks, senior analyst with Jupiter Research.
“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.”
Broadband Going Mainstream
Broadband has at last passed a critical inflection point in the U.S. –
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 percent of at-home and
at-work Internet users.
According to Jupiter analysts, broadband households have long been going
online: 60 percent 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 percent in summer 2001 compared with
17 percent 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
Consumer Survey data reveal that nearly one-third of broadband households
have annual incomes lower than $50,000 today, up from only 26 percent two
years ago.
Acquire Customers Online, Not Off
In an August 2001 Jupiter Consumer Survey, broadband consumers said that
self-initiated research and recommendations from friends were relatively
important factors in choosing providers. However, no single influencer
drove even 15 percent of broadband users to make a selection. In fact,
almost 40 percent of broadband users said that they were not sure if any
single factor influenced their decision to sign with a specific service
provider. According to Jupiter analysts, this uncertainty suggests that
costly ad campaigns may currently be ineffective tools for acquiring new
customers. Instead, companies with high Web site traffic or a strong
word-of-mouth from satisfied customers, will prove most successful in
garnering broadband subscribers.
“Broadband service providers now face the challenge of selling a complex
product to an audience that is increasingly mainstream,” said Joe Laszlo,
senior analyst with Jupiter Research. “By using the Web as a sales channel,
broadband providers can educate consumers about broadband’s benefits, while
at the same time control customer acquisition costs. With these costs
running upwards of $500 to $700 per customer, broadband providers must place
greater emphasis on the Web channel this year.”
Road Runner Runs Away from Competition
By examining traffic to broadband Web sites of a number of major Internet
Service Providers (ISPs) and carriers, Jupiter analysts have found that Road
Runner regularly garners over four million monthly unique visitors to its
site – more traffic than that to any other provider’s broadband-related
site. In comparison, most of the broadband sites of other major carriers
each had around 300,000 to 500,000 monthly unique visitors.
Companies interested in purchasing either of the two new Jupiter Research
Broadband Reports – titled “Broadband Audience: Maximizing Revenue from the
New Mainstream” or “Broadband Customer Acquisition: Building up the Web
Channel to Control Service Provider Costs”– can call toll-free at
1-877-464-6627 or visit www.jmm.com. Jupiter Research helps companies
develop, extend and integrate business strategies across online and emerging
channels. Backed by proprietary data, Jupiter’s industry-specific analysis,
competitive insight and strategic advice give businesses the tools they need
to exploit new technologies and business processes.
Jupiter Broadband Research Methodology
Jupiter utilizes a wide set of data-gathering tools to conduct research,
including systematic polling of leading industry executives, extensive
consumer surveys, extensive executive surveys, Media Metrix audience
measurement data and a rigorous approach to building market forecasting
models. Jupiter analyses and forecasts are based on a number of
methodologies, including close examination of analogous markets (either
previous growth of new technologies or relevant off-line market case
studies), consumer self-stated intentions culled from proprietary Jupiter
surveying, complex market segmentation analysis, and analysis of historical
trends. Additionally, all forecast assumptions are rigorously debated in a
process designed to capture the collective judgment of analysts with
relevant experience and perspectives on each given market. For a fuller
explanation of the methodology, please visit www.jmm.com.
Jupiter Consumer Survey – In May 2001, Jupiter designed and fielded a survey
to online consumers selected randomly from NPD consumer panels. A total of
3,150 individuals responded to the survey. Respondents received an e-mail
invitation to participate in the survey, with an attached URL linked to the
Web-based survey form. The sample was weighted by a series of demographic
and behavioral characteristics to ensure that it was representative of the
online population. Demographic weighting variables included age, gender,
household income, household education, household type, region, and market
size. Additionally, Jupiter took the unconventional step of weighting the
data by online tenure and AOL usage, two key determinants of online
behavior. Balancing quotas were determined by an ongoing weekly RDD survey
of almost 5,000 US households.
In this survey effort, Jupiter worked with its research partner NPD on the
technical tasks of survey fielding, sample building, balancing, and data
processing. NPD, founded in 1953, is one of the largest market research
companies in the US and maintains a general research panel of 400,000
households as well as an online panel of 450,000 Internet users.
About Jupiter Media Metrix
Jupiter Media Metrix is the global leader in Internet and new technology
analysis and measurement. The Company delivers innovative and comprehensive
Internet measurement, analysis and events to provide businesses with
unmatched global resources for understanding and profiting from the
Internet. Jupiter Media Metrix brings together world-class, innovative and
market-leading products, services, research methodologies and people.
Jupiter Media Metrix services include Media Metrix, Jupiter Research and
Site Measurement. The Company is headquartered in New York City. Visit
www.jmm.com for more information.
This press release contains statements of a forward-looking nature relating
to future events or future financial results of Jupiter Media Metrix.
Investors are cautioned that such statements are only predictions and that
actual events or results may differ materially. In evaluating such
statements, investors should specifically consider various factors, which
could cause actual events or results to differ materially from those
indicated from such forward-looking statements, including the matters set
forth in Jupiter Media Metrix reports and documents filed from time to time
with the Securities and Exchange Commission.
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