Are You Ready to Stream?
- by February 8, 2001
The Internet VI study, entitled `Streaming at a Crossroads', found that Americans are spending a weekly average of seven hours and eight minutes online in January 2001, compared to a weekly average of eight hours and one minute online in January 2000.
Despite this decline in the amount of time consumers spend online overall, streaming media usage has increased. As of January 2001, 13% of Americans (more than 30 million) use Internet audio or video each month, compared to 10% in January 2000.
In the last year, more than one-quarter (27%) of Americans (more than 61 million) have used Internet audio or video while six percent, over 13 million indicated they use streaming media each week.
"One of the study's key findings is that broadband and streaming media go hand in hand. As more consumers get super-fast Internet access at home, their streaming media consumption is likely to grow," said Bill Rose, vice president and general manager, Arbitron Internet Information.
`Streamies' - those who have ever listened to or viewed streaming media online - are an ideal target for online advertisers, the study says. Compared to those who have never used streaming media, streamies spend far more time online, are more likely to click on banner ads and are twice as likely to make online purchases. In fact, these online consumers have higher online expenditures, are more likely to be employed and have a higher level of education and income.
"Streaming media is a great way for advertisers to target the younger 12 to 24-year old market," added Larry Rosin, president, Edison Media Research. "These consumers are more likely to be online using streaming media and have a higher tendency to interact with the advertising."
Additional Internet VI study findings include: * `Streamies' show a high degree of interest in new devices for receiving audio content. Compared to Americans overall, "streamies" show almost twice as much interest in downloading music from the Web to a PC and getting Internet audio and satellite radio for the car. Streamies are twice as interested as the general population in receiving streamed content on a cell phone and a personal digital assistant.
* The proliferation of broadband will be a significant accelerator for streaming media. Americans with broadband access (seven percent of households) are twice as likely to consume streaming media. Overall, 12% of those online say they have an at-home broadband connection. Broadband penetration grows among those that have ever tried streaming media (16%), used streaming media in the last month (18%) or used streaming media in the last week (22%).
* Streamies are more likely to get broadband access. Eight percent of Americans say they plan to subscribe to broadband services in the next year.
