• by Jack Loechner , Staff Writer @mp_research, October 21, 2001

Cable Modem Penetration Driving Broadband

Jupiter Media Metrix reports that 41% of online households in the US will subscribe to a broadband Internet connection service by 2006—up from 9% in 2000.

Jupiter analysts forecast that the number of households accessing the Internet via broadband connectivity (cable modem, DSL, satellite or fixed wireless) will increase from 5.2 million in 2000 to 35.1 million in 2006, with cable modems being the primary driver.

Joe Laszlo, Jupiter senior analyst, says "While consumers' awareness of broadband has grown considerably, improved and increased marketing by cable and DSL providers will finally help overcome lingering resistance to the cost of broadband subscriptions. It is absolutely critical for companies with relevant content, products and services to time their business initiatives to reach the anticipated broadband audience."

Additional highlights include the following:

Broadband consumers continue to use their connections more intensively than narrowband consumers do, breeding usage differences between the two segments.

+------------------+-----------+-------------+  |                  | Broadband | Narrowband  |  |                  |   Users   |  (dial-up)  |  |                  |           |    Users    |
+------------------+-----------+-------------+  |                  |           |             |  | Download music   |    46%    |     26%     |  | Listen to music  |    48     |     30      |  | Watch
video      |    36     |     18      |  | Personal banking |    48     |     30      |  | Stock related    |    35     |     23      |  | activities       |           |             |
+------------------+-----------+-------------+  

Despite differences among some users, the largest share of each audience uses the Internet for e-mail, gathering information and instant messaging.

"Web sites and activities that are popular with the broadband audience indicate that broadband users are becoming increasingly mainstream," Laszlo said. "Marketing strategies built around this audience should still target the young, Internet-savvy and entertainment-oriented audience; but, they should also embrace segments like middle-class or upper-middle-class families that currently use the Internet and individuals that actively manage their finances, such as frequent stock traders."

You can read more here.