NOT DGIV !!! NEWS STORY!! INTERNET ACCESS UP 43% IN FIRST QUARTER 98'
Business Editors/High-Tech Writers LA JOLLA, Calif.--(BUSINESS WIRE)--May 26, 1998-- In Browser War, Netscape Navigator and Communicator Maintain Narrowing Lead Over Microsoft Internet Explorer Nearly 45 million PCs in the United States access the Internet regularly, a 43 percent increase in the first quarter of 1998 vs. the first quarter of 1997, according to a newly released study from Ziff-Davis (NYSE:ZD). The findings are from the 1998 ZD Technology User Profile, a semiannual study of U.S. PC use and users conducted by ZD Market Intelligence, a leading source of fact-based information on the computer and communications industries. "Internet use continues to grow in the U.S.," said Dave Tremblay, senior industry analyst at ZD Market Intelligence, a Ziff-Davis group. "The number of PCs that use the Internet has grown more than 140 percent in the past two years, from 18.6 million in January 1996 to 44.6 million in 1998. About one in three workplace PCs now access the Internet, and nearly one in two home PCs does the same. In just two years, the Internet has become a home-PC mainstay." Internet Penetration Percentage of PCs Installed in the United States That Access the Internet *T Home Self-Employed Workplace 1Q96 23 percent 26 percent 17 percent 1Q97 37 percent 43 percent 26 percent 1Q98 48 percent 52 percent 33 percent Source: 1998 ZD Technology User Profile *T The most commonly used Internet application remains electronic mail. About 85 percent of home and self-employed Internet PCs and just over three-quarters of workplace Internet PCs report utilizing Internet e-mail. Reading online publications and downloading software are the next two most-often-used Internet applications, and the only other two used by at least 50 percent of Internet PCs. The next most common Internet application is obtaining information about products the user intends to buy in non-electronic channels. Some 16.4 million PCs, or 37 percent of those connected to the Internet, were used for this application. This is about two-thirds more than the number that were used to shop for products the user intended to buy electronically. A total of 10 million PCs used the Internet to shop for e-purchases. 5.7 million have bought PCs or related products on the net, 3.9 million bought other consumer electronics products and nearly 7.7 million bought some other consumer product or service. The number purchasing other consumer products and services via the net has more than doubled from 3.7 million a year ago. "The Internet is becoming a major part of the lives of millions of Americans," added Mark Nelson, vice president and general manager of ZD Market Intelligence's Consumer Markets Group. "The average Internet PC was connected to the net 4.5 hours a week, a full hour more than we measured a year ago. Considering both the increase in the number of PCs connected and the average time connected, we estimate that Internet 'eyeball-hours' increased some 80 percent in the last year. It's no wonder that more and more companies are looking to the Internet as an advertising medium to reach their customers and potential customers. What other medium grew 80 percent in the past year?" The browser battle really heated up in 1997. Although Netscape did grow its number of users, the clear winner was Microsoft and its Internet Explorer (IE). Including both Navigator and Communicator, a total of 24.2 million PCs used a Netscape browser as of January 1998, a 33 percent increase from 18.2 million one year earlier. In spite of its growth in the number of users, Netscape actually lost market share from January 1997 to January 1998, declining from 63 percent to 54 percent of Internet PCs. Some 17.3 million PCs used Microsoft IE in January 1998, a 182 percent increase in just one year. IE's share nearly doubled, from 21 percent in January 1997 to 39 percent in January 1998. "There is a silver lining for Netscape in our findings," Tremblay said. "Many people do not seem to view the choice of a browser as an either/or situation. Nearly 5.6 million PCs have both Navigator and IE. In total, about one in six Internet PCs has more than one browser. So, even as IE gains in the marketplace, Netscape may not be driven off PCs." The findings are from the 1998 ZD Technology User Profile, the largest, most comprehensive research effort focusing on personal computer, communications and home technology usage in the United States. Data was obtained from responses received to questionnaires mailed to 50,000 households. Survey results are based on the findings of a detailed, 12-page written questionnaire on the types and brands of equipment used at home and in the workplace, which was mailed to 17,500 U.S. households. The survey also gathers extensive demographic information from respondents and ascertains their future purchase plans. ZD Market Intelligence, formerly Computer Intelligence, is a leading provider of sales and marketing solutions to a wide spectrum of computer and telecommunications companies. More than 10,000 users access ZD Market Intelligence data on a regular basis. ZD Market Intelligence's extensive research capabilities provide a variety of products and services that help companies sell and market more effectively. All are based on proprietary-information databases of technology usage and buying activity in large- to medium-size businesses and homes. With headquarters in La Jolla, Calif., ZD Market Intelligence has U.S. offices in Cambridge, Mass., Norwalk, Conn.; Sunnyvale, Calif.; and Dallas. European headquarters are in Paris, with sales offices in the United Kingdom, Germany and Spain, and sales agents in Belgium and Switzerland. Samples of ZD Market Intelligence's extensive market data and research results, timely commentary from industry authorities and previews of upcoming technology events are available on the company's World Wide Web site, www.zdintelligence.com (formerly www.ci.zd.com). Ziff-Davis is a leading integrated media and marketing company focused on computing and Internet-related technology, with principal platforms in print publishing, trade shows and conferences, online content, market research and education. The company provides global technology companies with marketing strategies for reaching key decision-makers. --30--ktbh/sd* CONTACT: ZD Market Intelligence Glenn Grant, 800/880-0973 ggrant@zd.com www.zdintelligence.com www.ci.infobeads.com/default.asp?module=insider&topic= Internet&story=Inet_use_0522 OR Rogers Communications Judith Vanderkay, 781/224-1100 jvanderkay@rogerscom.com KEYWORD: CALIFORNIA TEXAS CONNECTICUT MASSACHUSETTS INDUSTRY KEYWORD: INTERACTIVE/MULTIMEDIA/INTERNET COMED |