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Brand Development
Research provided by: Back to Facts on Streaming
How This Study Was Conducted
A total of 3,005 people were surveyed to probe America’s Internet usage and streaming media behavior. In January 2001, telephone interviews were conducted with 3,005 respondents age 12 and older chosen at random from a national sample of Arbitron’s Fall 2000 survey diary keepers.
Significant Highlights
· The growth of streaming media over the past two and a half years has been nothing short of stunning. Our Internet V study, published in September 2000, showed that the percentage of Americans who had ever listened to radio stations online had tripled in two years. In this latest study we see more evidence of growth in the consumer’s use of streaming media. As of January 2001, 13 percent, or 29.5 million Americans, had used either Internet audio or video in the past month, compared to 10 percent in January 2000. Our latest research also indicates that more than one-quarter (27 percent) of Americans (61.3 million), had ever experienced either Internet audio or video and six percent (13.4 million) had listened to or watched streaming media each week. |
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More Americans are using streaming media on a regular basis despite the slower growth of those accessing the Internet and a plateau in overall time spent online. It is clear that the sudden reduction in dot com advertising has led to slower growth in those going online and has also led to a decrease in time spent online. Despite the plateau in the overall time spent on the Internet, the percentage of Americans who have listened to radio stations online in the last month has grown from 5.3 percent in January 2000 to 7.3 percent in January 2001. Also, the proportion of Americans who have listened in the last week increased from 2.1 percent in January 2000 to 3.4 percent in January 2001.
· One-third of Americans would give up TV if forced to choose between at-home Internet access and television. It is stunning how, in a very short period of time, the Internet has become such a necessity for a large percentage of Americans. Among those who watch or listen to streaming media, nearly half would forsake their televisions to keep Internet access. Half of younger Americans (age 12 to 24) say they would give up their TVs in order to keep their home Internet access.
· Advertisers desiring to
reach a highly interactive, lucrative and responsive target on the Internet
should target streamies. Streamies are the 44
percent of those online who have either watched or listened to webcast
content. Compared to non-streamies, streamies spend far more time online,
are far more likely to click on banner ads and are twice as likely to make
online purchases. Average expenditures online are much higher among
Streamies and time spent online is nearly double. Streamies are more likely
to be employed, are more highly educated and have higher incomes.
· The proliferation of broadband will be a significant accelerator for streaming media. Broadband and streaming media go hand in hand. Those with broadband (nearly seven percent of households) are twice as likely to consume streaming media. The most experienced Internet users tend to be the people converting from dial-up to broadband. Also, the most experienced Internet users are streaming media consumers. Overall, 13 percent of those online say they have an at-home broadband connection. The broadband penetration grows among those who have ever tried streaming media (16 percent), used streaming media in the last month (18 percent) or used streaming media in the last week (22 percent).
An additional eight percent of Americans say they plan to subscribe to broadband services in the next year. The more involved with streaming media, the greater the likelihood that consumers say they plan to get broadband in the next 12 months. Seventeen percent of Internet users with a dial-up connection at home say they intend to subscribe to broadband in the next 12 months. The statement of intent to access broadband in the next year is higher among those who have ever tried streaming (23 percent), have streamed in the last month (25 percent) and have streamed in the last week (28 percent).
· Video streamies represent 21 percent of those online, 12 percent of all Americans, and are a streaming media subsegment with very distinct characteristics. Video streamies are exceptionally heavy consumers of media, spending a combined total of eight and a half hours a day with TV, radio, newspaper and the Internet. Video streamies spend nearly two hours a day online and skew male (63 percent). Video streamies are equally distributed among 12- to 54-year-olds and are the most experienced Internet users; they are even more likely to click on Web advertising and make online purchases. Movie trailers and music videos make up the most watched video content online.
· Streamies show a high degree of interest in new devices for receiving audio content. Compared to the overall population, streamies show almost twice as much interest in downloading music from the Internet to their computers, in listening to Internet audio in their cars and in getting satellite radio for their cars. Streamies are also twice as interested as the general population in receiving streamed content on cell phones or personal digital assistants (PDAs).
· Streamies are very oriented to at-work media consumption and represent significant audience potential in the workplace. The more time spent with streaming media, the greater the amount of at-work radio listenership. Not surprisingly, streamies are much more likely to get their at-work entertainment via Internet audio.
· Two-thirds of streamies would be upset if radio stations discontinued webcasts due to new government fees. Recently, the U.S. copyright office announced that U.S. radio stations that stream over the Internet would be subject to licensing fees. This matter is currently in litigation. It is clear that the streaming media audience would be very disappointed if radio stations stopped webcasting. This research reveals that the most frequent listeners to radio station broadcasts over the Internet are their existing loyal “over-the-air” core audiences. Key Findings
1. Internet access in America continues to grow. Our latest survey shows that 62 percent of Americans access the Internet at home, at work, at a public library or at school. If we examine combined access at home or work, the proportion of Americans accessing the Internet has grown from 31 percent in August of 1998 to 58 percent in January 2001. Home access has more than doubled during the same period and has continued to grow in the last six months (from 47 percent in July 2000 to 53 percent in January 2001). Despite the disappointing fourth quarter 2000 PC sales, the penetration of personal computers in American homes grew from 61 percent in January 2000 to 67 percent in January 2001.
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3. While the penetration of Internet access is up, time spent online is down. Over the last year, the average weekly time spent online has been dropping (from eight hours one minute in January 2000 to seven hours 49 minutes in July 2000 to seven hours eight minutes in January 2001). This decrease in time spent online has also been measured by NetRatings, which recently revealed a 15 percent reduction in time spent online from October to December 2000. The drop in time spent online could be attributed to the “bloom fading from the rose” and possibly the sharp reduction in overall dotcom advertising.
4. The falloff in dotcom advertising has led to a decline in the ability of media to drive Web site visitation. This study shows that fewer Americans now visit a Web site they learned about from advertising. Across the board, the proportion of Americans that say they visited a Web site because of ads on various media has dropped:
“Have you ever visited a Web site you learned about from an advertisement on...?”
Media January 2000 July 2000 January 2001
Television 60%
64% 52%
From 1998 to mid-2000, every advertising-supported medium was bursting with messages for exciting, interesting new Web sites. The sharp reduction in dotcom advertising corresponds with the drop in time spent online.
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