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Broadband Households are the Key Target Market for the Digital Home, Finds IDC

  • 22 April, 2005 11:25

<p>NORTH SYDNEY, April 22nd, 2005 – IDC has recently conducted a survey titled "Australia Digital Home Consumer Usage Survey 2005: Attitudes Towards New Consumer Technologies" with 800 Australian households. The objective of this survey is to gauge the interest and usage of new consumer technologies from the demand side. IDC's key findings indicate that broadband households are more likely to own and use new technologies than other consumer segments.</p>
<p>"Broadband households typically reported higher rates of ownership and usage of new technologies than other consumer segments. Broadband households were twice as likely to own home networking solutions and more likely to consume Internet content than the general population," says Landry Fevre, IDC Research Director for Telecommunications and Consumer Digital Markets.</p>
<p>"With the broadband household base expected to grow, the demand for content via the broadband connection will be greater especially when broadband providers will start to launch video services, posing a threat for cable and digital cable TV operators as consumers may turn to the Internet for premium content".</p>
<p>"Partnering with broadband ISPs to market new technologies to broadband households is a key marketing strategy for vendors," added Landry Fevre.</p>
<p>Other key findings from the IDC survey are:</p>
<p>* The young segment is more likely to adopt new technologies than the older segment (40+ years). They are more comfortable with using the Internet for premium content and are more interested in new applications such as interactive television.</p>
<p>* The educated and affluent households are early adopters. Vendors should target those educated and affluent households with teenagers or young adults living in the home. This demographic is eager to adopt new technologies and pass on their knowledge and costs associated with utilising new technologies to older members/decision-makers in the households.</p>
<p>Looking at future trends in the consumer market, IDC believes that there is a trend and a correlation between usage of services and the ownership of devices. One correlations exists between broadband subscription and home network ownership (as one of the top uses of the home network is to share a fast Internet connection). Another correlation can be observed between portable MP3 players and online music downloads, as they are complementary devices/services. In the years to come, this trend is very likely to change the future business models where consumer electronics manufacturers and broadband services service providers will compete to develop service oriented devices such as the iTunes and iPod combination and IP TV set top boxes.</p>
<p>For press enquiries please contact:
Landry Fevre
Research Director, Telecommunications and Consumer Digital Markets
Phone: 61 2 9925 2252</p>
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