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Technology Stocks : PC Sector Round Table

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To: Yogi - Paul who wrote (190)3/30/1998 10:16:00 PM
From: LK2  Read Replies (2) of 2025
 
irthrifty, it looks like you're right on the money on one of the current/to-be-promoted growth spots of the moment.

(The title of the article is slightly misleading, and the survey results don't have the accuracy of most published surveys, because of the way the survey was conducted):

news.com

Study: Net use eclipsing
TV
By Jim Hu
Staff Writer, CNET NEWS.COM
March 30, 1998, 5:10 p.m. PT

Web users are now spending as much time on the
Internet as they are watching television--if not
more, a new study says.

WebCensus, a survey conducted by investment
firm Hambrecht & Quist and Web advertisement
network LinkExchange, broke down the time Web
users dedicate to various media during the course
of a day. Results showed that 31 percent of the
time was spent on the Internet, compared to 29
percent devoted to watching television. Further
breakdown found radio taking up 24 percent of the
time, and print media such as newspapers and
magazines pulling up the rear with 16 percent.

According to Hambrecht & Quist analyst Daniel
Rimer, the figures underscore a narrowing chasm
between television and the Internet--media whose
technologies continue to converge.

"Junkies of Internet are junkies of media in general,
especially television," said Rimer. "TV users are
typically more likely to use the Internet in very largeamounts. We believe there is a correlation between heavy TV users and heavy Internet users. As the Internet matures and more bandwidth becomes
available, the correlation will increase, because the
experience on the Internet will not only more
additive to television, but it will also be a more
immersive."

The study also found that 58 percent of those
surveyed use the Internet in addition to traditional
media. According to Adam Schoenfeld, an analyst
at Jupiter Communications, the figure reflects the
growing phenomenon of simultaneous media usage
between the Internet and television, which may
open up a lot of opportunities for cross-media
promotion.

Schoenfeld places particular significance on
marquee sporting events as one of the first
examples of simultaneous usage. Jupiter studies
have shown that during these sporting events, 50
percent surveyed said they had visited a sports
Web site when the program mentioned a URL
during the broadcast. Moreover, during the events,
33 percent of online users had an interest in
accessing Web content while simultaneously
watching sports on television.

But while these figures may paint a rosy portrait of
the Internet and television, the study nonetheless
showed signs of defection to the Internet. When
WebCensus asked which media Internet users
sacrificed for the Web, 22 percent spent less time
watching television; 12 percent spent less time
reading newspapers and magazines; and 3 percent
sacrificed radio time.

"People are changing the channel. Not to a new TV
channel, but changing to the Internet as a new
channel to communicate," said Kate Delhagen, an
analyst at Forrester Research.

Simultaneous usage aside, Schoenfeld also agreed.
"It's indisputable that the Web is siphoning usage
form traditional media," he said. "No media
company can ignore the Web if they want to keep
their slice of the pie."

Evidence of traditional media expanding their online
presence continues to grow. Today, for example,
NBC announced it would be partnering with Net
company Launch Media to create a cobranded
music site on NBC.com, featuring multimedia
content and e-commerce. NBC also took a
minority stake in Launch. (See related story)

Additional results from the survey also provided a
demographic look at Web users. Of the 100,000
Netizens that participated in the study, 40 percent
were female, which the study considered a more
balanced distribution. The average participant was
30 years old, college educated, and had a yearly
income of $50,000.

WebCensus, which was advertised throughout the
LinkExchange network, offered a voluntary
questionnaire over a two-month period earlier this
year. It polled roughly 100,000 Netizens.

Copyright c 1995-98 CNET, Inc. All rights reserved
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