Study Finds that 73% of
Net Users are not
Interested in Cable Modem
Service
According to Market Research Institute, a
firm commissioned by Cable World to
conduct a study of the cable modem
marketplace, 73% of Internet users are not
interested in paying $40 a month for cable
modem service. The primary reasons cited
by respondents, that claimed they were
either "not at all likely" or it was "only slightly
possible" that they would take cable modem
service at 40 bucks, included a distrust of
their cable company and a high level of
satisfaction with their current ISP. Half of the
uninterested respondents were AOL users.
The study revealed that 59% of those
surveyed were "not interested at all" or
"mostly disinterested" in accessing the
Internet through their television at analog
data rate support and pricing. The study
also finds that 35% of respondents would
"probably" or "certainly" sign up for a
bundled telecom package that included
voice, video and data if they could get a
10% discount off their monthly bill.
The study revealed that, collectively,
respondents spent an average of 8.5 hours
online a week. The complete study is known
as "Internet Use and Practices Survey". For
more information, contact Cara Cadden at
Primedia Intertec in Chicago at (312)
840-8412.
In a separate market study conducted by
AOL and Roper Starch Worldwide, AOL
reports that 44% of 1,001 adult Internet or
online users surveyed, claim that the
Internet or their online service was a
necessity in their lives. Nearly half of
respondents, stated that they took laptops
on vacation.
The study also finds that 71% of
respondents have been on the Internet or an
online service for less than 3 years and 29%
have been electronically connected for less
than a year. Of those surveyed, 87% stated
that they logged on regularly to
communicate with friends and family. 73% of
respondents characterize themselves as
"novices" or at an "intermediary level" of
expertise.
The study is known as "America
Online/Roper Starch Cyberstudy 1998." The
press announcement did not provide
information about obtaining a copy of the
study. The findings from both these studies
support the case that the ISP business is
driven by content and applications and, for
the masses, (despite how strange it seems)
high-speed connectivity alone does not
presently provide a compelling reason to
switch providers. The average Internet and
online user likes the comfort of familiar
environment and provider. They will require
a perceived "need" before going to the
inconvenience of switching ISPs. Once
cable operators get the subscribers, this
user attitude will work in their favor since
churn will be low.
[from xDSL reflector]
(Clearly user attitudes toward high-speed are very subject to rapid shifts ... the issues and actions involved shifting the perception will bring many changes to the internet landscape.) |
