Arbitron: Internet VI – Streaming @ A Crossroads Study.

Americans are spending less time on the Internet, but more time listening to or viewing streaming media, according to the latest Arbitron/Edison Media Research Internet Study.

The Internet VI study, entitled `Streaming at a Crossroads’, found that Americans reported 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 percent of Americans (more than 30 million) use Internet audio or video each month, compared to 10 percent in January 2000.

In the last year, more than one-quarter (27 percent) 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. 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 percent of those online say they have an at-home broadband connection. Broadband penetration grows among those that 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).

— Streamies are more likely to get broadband access. Eight percent of Americans say they plan to subscribe to broadband
services in the next year. Seventeen percent of Internet users with a dial-up connection at home say they intend to subscribe to broadband in the next 12 months. Those that have tried streaming (23 percent) are more likely to subscribe to
broadband in the next year.

— 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. Streamies are also more likely to get their at-work entertainment via Internet audio.

— Two-thirds of Streamies would be upset if radio stations discontinued webcasts because of new government fees. The U.S. copyright office recently announced fees would be imposed on U.S. radio stations that stream over the Internet. 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 audience.

The findings reported here are based on a January 2001 survey. The study, conducted in partnership with Edison Media Research, consists of 3,005 telephone interviews of Arbitron’s Fall 2000 radio diary keepers. The diary-based sample was drawn as a national random sample of persons over the age of 12.

For a copy of the study CLICK below ( Adobe Acrobat required):

http://www.arbitron.com/studies/internet_study_vi.pdf

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