IP: Forty-six percent of households with computers are now

[David Farber <farber () cis upenn edu>]

[ this says some interesting things about the future growth of online
systems and where the $s are djf]




Forty-six percent of households with computers are now online;
households using online services or the Internet now spend an
averageof 9.4 hours a week online compared to 5.9 hours a year ago


Source: Business Wire


SAN FRANCISCO--(BUSINESS WIRE) via Individual Inc. -- Odyssey's
latest Homefront study, the largest in-depth national survey
tracking the home computing market, today revealed that 46 percent
of U.S. households with computers (or 17 percent of all U.S.
households) are now online.


Odyssey is the nation's only independent market research firm
dedicated exclusively to studying consumers, technology and
at-home information and entertainment.


According to the survey released today, online households are
spending an average of 9.4 hours a week online, with electronic
mail leading the way as the most popular use of online services
and the Internet. And it isn't just the men who are online. In
fact, 44 percent of households using online services or the
Internet report that in their homes, online services and the
Internet are used most by a woman or a child. Men were reported to
use online services the most in 54 percent of online households,
compared to 69 percent just last year.


Who uses online services or the Internet the most in your
household? (Percent of households using online services or the
Internet)


Jan. 1997   July 1996   Jan. 1996


Adult Males             54 %         64 %       69 %


Adult Females           29 %         22 %       21 %


Children                15 %         10 %       10 %






Twenty-three percent of those using online services and the


Internet from home say they use electronic mail, sending an
average


of 12 personal messages per week and receiving an average of 16


personal messages per week.  The vast majority of these messages
are


going to and coming from family members and friends.  Among the
most


important reasons for using electronic mail are that it is more


convenient than mailing a letter and that it saves time and money


versus long-distance calling.






What activities are you typically taking time away from to go
online?


(Volunteered. Respondents could say anything they wanted.)










Television              30 %


Household chores        17 %


Reading a book          11 %


Spending time w/family   9 %


Reading a magazine       4 %


Going out                4 %






According to Odyssey President Nick Donatiello, this data


reinforces the idea that two industries in particular, television
and


long-distance providers, need to pay close attention to what is


happening online.


"Online services are competing directly with television for the


time and attention of consumers," said Donatiello.  "And it is


increasingly clear that e-mail is becoming a desirable and
effective


alternative to a long-distance phone call for a significant


proportion of those who are online."


As television companies and long-distance providers examine the


online services market's competitive framework, they will find


America Online (AOL) widening its lead.  America Online, which was


not the market leader 24 months ago, now finds itself in the
enviable


position of having five times the market share of the number two


player in the home market.  This is an indication of how quickly


brands can reshuffle in a young and fast-growing category.


"It is important to remember that the environment that


facilitated AOL's meteoric rise -- low market penetration, fast
growth


and the absence of any players with a strongly positive image --
is


still with us," said Donatiello.  "America Online can continue to


exploit this situation to cement its position or, alternatively,


another player could learn to take advantage of it and the deck
could


be reshuffled again," Donatiello said.






Market Penetration of Online Service Brands in U.S. Homes


(Percent of PC households)






Online Service  Jan.  July  Jan.  July  Jan.  July


1997  1996  1996  1995  1995  1994






America Online  22 %  18 %  14 %  13 %   5 %   4 %


CompuServe       4 %   5 %   6 %   6 %   4 %   5 %


Prodigy          3 %   4 %   5 %   7 %   8 %  10 %


MSN              2 %   1 %   1 %   --    --    --




About Odyssey


Odyssey is the nation's only independent market research firm
dedicated exclusively to studying the complex and changing
relationship between consumers, technology and at-home information
and entertainment. The Homefront survey seeks to understand what
is really happening in homes with personal computers, and is
designed to provide reliable hard data on this important market.
Research is based on interviews with 2,500 consumers. The
random-digit-dial, computer-generated sample closely matches the
U.S. census and is representative of all U.S. households.


In addition to Homefront, each year Odyssey conducts the largest
and most comprehensive research study of consumers and new media.
This massive research effort includes a national survey of 4,500
supported by focus groups in various regions of the country. The
objective is to determine the relevant market segments and
understand what is going to motivate consumers to adopt new media
products and services.


Odyssey is based in San Francisco. For additional information,
press may contact Marivi Lerdo or Jacqueline Lewis at
415/968-4033. Companies interested in purchasing Odyssey's
research can reach the company at 800/742-1792.


CONTACT: Edelman Public Relations Worldwide | Marivi Lerdo de
Tejada, 415/433-5381 | marivi () sv edelman com | Jacqueline Lewis,
415/968-4033 | jlewis () sv edelman com


[03-06-97 at 11:23 EST, Business Wire]