• by Masha Geller , May 22, 2002

The newest findings from Jupiter Media Metrix reveal that more than two-thirds of U.S. consumers are not willing to pay for any services on the Internet, including enhanced email, instant messaging or file-sharing capabilities. In fact, consumer resistance to paying for online services (69%) is higher than paying for content (63%).

Jupiter said that although about one-third of online adults in the U.S. use a free service as their primary personal email account and over 60% use an ISP, only 12% would be willing to pay for enhanced email.

Furthermore, a March 2002 Jupiter Consumer Survey reveals that only 8% of online adults would pay to access recruitment and job sites and 6% would pay for enhanced instant messaging and file sharing capabilities. Respondents indicated they are least likely to pay for personals and dating services (2%).

The survey indicates that consumers are less confused about where they might purchase online services than where they would content. Consumers would feel most comfortable with paying their ISP (47%) or a portal (16%) for online services.

Given these findings, Jupiter analysts caution companies that bundles of services could prove more attractive than separate offerings - ISPs that have an existing billing relationship with their customers should have the easiest time selling services, with portals being another logical aggregator.

"Jupiter's latest research indicates that there is no obvious killer-app online service that consumers would pay for," said David Card, Jupiter Research VP and senior analyst. "Companies should bundle online services and price them at less than 30 dollars per year. When transitioning from free to fee, service aggregators must solicit early consumer feedback and promote packages aggressively with email."