To: Leroyt who wrote (5106 ) 3/3/2000 1:10:00 PM From: Walter Morton Respond to of 5541
"Broadband presents a different opportunity; something beyond streaming media...it would be a mistake to approach the web as simply another way to deliver television. Instead, we need to develop brand new types of programs that take advantage of what the web does well." Rob Tercek, VP Online Services, Columbia TriStar Interactive, 6/30/99 Some facts and figures about Broadband Consumers Consumer Broadband Market...Moving Rapidly to Mass 1998 .5 million US household customers 7/99 1.2 million US household customers 12/99 2.6 million US household customers 2000 5.8 million US household customers 2001 11.0 million US household customers 2002 18.8 million US household customers 2003 27.4 million US household customers Source for estimates: Forrester Research Need more evidence broadband is going to be huge... Consumer demand exploding as measured in a Forrester 1/99 survey of 2,000 US homes online where 43% said they were somewhat interested in broadband services--a 64% increase as compared to the 25% interested in 1998 AOL subscribers are eager to join the broadband revolution. Findings from a study among AOL users found that 90% wish for high speed access to the Net as a result of the AOL/Time Warner merger.--Greenfield Online and The Myers Group, 2/2/00 Broadband momentum is everywhere...DSL prices dropping in major markets, FCC mandating phone line sharing, Paradyne to offer high-speed access to hotels, Free DSL services for consumers, Time Warner and AOL merge. Unprecedented industry-wide mergers & acquisitions positioning for the future (telecomm/cable carriers, telecomm/cable equipment vendors internet portals, and content providers) 20 cable deals between april-june 99 valued at $88 billion (top 5 cable systems now dominate the entire industry) Video is the future...Star Wars trailer was downloaded 8 million times off the Apple web site in April 1999 Broadband environment is more effective for branding Rich media ads make a deeper impression on broadband 44% ad recall...a 34% improvement over static ads +30% brand image improvement over static ad (IPSOS-ASI/@HOME, 3/99) General Demographics Broadband User* General U.S. Population Median Adult Age 38 36 Households with Children 47% 36% Annual Household Income $52,600 $40,000 College Degree 36% 21% Home Ownership 70% 64% Make Online Purchase in Last Year 44% 27% Internet Usage 22 hrs/week 12 hrs/week Sources: Aspen Media Research, Claritas, Find SVP Consumer Habits Broadband User General U.S. Population Made Travel Plans Online in Last Month 164 100 Own a Laptop or Notebook PC 151 100 Used Online Financial Service in Last Month 150 100 Own a Luxury Car Purchased New 144 100 Bought $300 or More in Software in Last Year 143 100 Own a Cellular Phone 132 100 Own a Vacation Home 131 100 Made 4 or More Domestic Trips in Last Year 129 100 Bought a Novel in Last Year 127 100 Sources: Claritas, MRI. Figures are for comparsion purposes indexed against the general U.S. population. * The Broadband User profile is based on Road Runner subscriber information.