Consumer Adoption of High Speed Internet Access to Usher in New Online Service Spending Says Venture Strategy Partners
SAN FRANCISCO--January 15, 2002--For most consumers the online superhighway is still nothing more than a horse and buggy trail with Internet access limited to dial up modems.
However, consumer demand for high speed Internet access is expected to mushroom in the next year ushering in a wave of anticipated consumer spending on online subscription services, according to research commissioned by Venture Strategy Partners, an early stage venture capital firm.
According to the findings of Venture Strategy Partners` Consumer Technology Behavior Index, online consumers are spending more time on the Internet that a year ago, averaging 9.4 hours a week, but still struggle with dial-up modems. The research found that while nearly 76 percent of consumers are aware of high-speed Internet access, only 14 percent of consumers currently have high-speed Internet access at home. However, nearly one third of those non high-speed users say they are highly likely to subscribe within the next eight months.
According to Joanna Gallanter, Founder and Managing Partner of Venture Strategy Partners, the demand for faster access is driven in part by younger and more tech-savvy consumers who are seeking the convenience of being able to talk on the telephone at the same time as being online and the ability to download streaming video and music, among other services.
The findings serve to underscore the belief that the long anticipated payoff of broadband access to the Internet in terms of increased consumer spending on online subscription services is just around the corner. This is good news for those emerging venture-backed entrepreneurial companies that have placed large bets in developing a host of Internet-based applications that have not yet been embraced by consumers.
In establishing the Consumer Technology Behavior Index, Venture Strategy Partners seeks to project adoption and usage trends of new technology products and services among general consumers and therefore help guide investment decisions in emerging tech-based entrepreneurial companies.
"Tracking market trends is essential to any investor, especially in technology where innovation is continuous and external market forces significantly influence development and adoption, said Gallanter. "Over time, understanding which products and services consumers are using and how they are using them will assist in forecasting trends and predicting mainstream adoption. By better understanding trends and consumer adoption of technology products, we will be smarter investors."
According to the Index, which will poll consumer attitudes about their personal benefits of various tech products twice a year, among consumer households with children interest is particularly high in areas of interactive educational programs, video games, music downloads, on-demand movies and camera controlled content.
Venture Strategy Partners is also launching a companion Business Technology Behavior Index that will track adoption and usage of various technologies by businesses. Results of the first wave of polling are expected shortly.
About Venture Strategy Partners:
Venture Strategy Partners, a San Francisco-based venture capital firm, invests in early-stage companies helping build sustainable, high-growth businesses through active partnership and positioning. Founded on the belief that the value of technological innovation is only maximized through a defined positioning in the marketplace, Venture Strategy Partners` internal and external team of experts work alongside entrepreneurs to establish category and brand-leadership. Find out more at http://www.venturestrategy.com.
CONTACT: Communication Partners, New York
Thomas Phillips, 212/935-4655
comptwp@aol.com
or
Venture Strategy Partners, San Francisco
Annie Williams, 415/558-8600
Annie@vsplp.com
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