Consumption of Information Goods and Services in the United States
There is a trendsetting technology elite in the U.S. who chart the course for the use of information goods and services.
Embargoed until 6pm Eastern on 23 November 2003
John B. Horrigan, Senior Research Specialist
PEW INTERNET & AMERICAN LIFE PROJECT 1100 CONNECTICUT AVENUE, NW – SUITE 710 WASHINGTON, D.C. 20036
202-296-0019 http://www.pewinternet.org/
Summary of Findings
Americans’ love affair with technology is one of the defining characteristics of their culture. For many Americans, having the latest electronic gadget or experimenting with the newest tech fad is a habit they develop at an early age and never break. Although these ardent technophiles are a minority of the population, their trendsetting ways often ripple widely in society. Many people, in time, wind up following the technological trail cleared by these pioneers. In fact, Americans have become steady adopters of devices and services that enable them to gather and distribute information, and these have given us flexibility in how we communicate, altered the patterns of how we stay in touch with others, and even influenced the content of our messages.
In this report, we take an inventory of the communications gadgets and services that American use and examine the variations within the population of technology users.
There is clearly a technology elite in the United States – the 31% of the population (Internet and non-Internet users alike) who are high-end technology adopters.
This elite comprises three distinct sub-groups of Americans who are the most voracious consumers of information goods and services in the United States.
The Young Tech Elites make up one-fifth of the technology elite. The average age for this group is 22 years. Older Wired Baby Boomers make up the remaining one-fifth of the technology elite. The average age for these baby boomers is 52. Wired Generation Xers (GenXers) make up most of the technology elite (about 60%). The average age for this group is 36 years. Technology elites in the United States have more than just a lot of technology, although they have plenty of that. For this group, the Internet, cell phone, digital videodisc player, and personal digital assistant are commonplace; many of them access the Internet wirelessly and are starting to pay for online content. What is distinctive about them is that new electronic communications technologies come first. They would rather do without their wireline telephone than their computer. For the Young Tech Elites, the cell phone is
This report is based on the findings of a daily tracking survey on Americans' use of the Internet. The results in this report are based on data from telephone interviews conducted by Princeton Survey Research Associates between October 7 and October 27, 2002, among a sample of 1,677 adults, age 18 and older. For results based on the total sample, one can say with 95% confidence that the error attributable to sampling and other random effects is plus or minus 2 percentage points. For results based Internet users (n=1,027), the margin of sampling error is plus or minus 3 percentage points.
Pew Internet & American Life Project, 1100 Connecticut Avenue, NW, Suite 710, Washington, DC 20036 202-296-0019 http://www.pewinternet.org Summary of Findings
more important than the wireline phone, and email is as important as telephonic communication. For the Young Tech Elites, the Internet is a regular source for daily news and an indispensable element of their entertainment experience.
The tech elites are also very hands-on when it comes to their Internet experience. The tech elites choose what homepage comes up when they click on their browsers; they don’t let their Internet service providers (ISPs) do the choosing for them. They have switched ISPs before and, because they think ISPs differ in quality, they might switch again.
Most people – 69% of the population – are not part of the technological elite. A lack of time, interest, and money seems to drive the relative tech apathy of this fairly diverse crowd. Some are young and seem to have neither the time nor the disposable income to dabble in cutting-edge technologies. Others appear to be devoting their energies to jobs and families, and therefore don’t immerse themselves in technology. The rest of those who are not ardently engaged with technology are older, mostly women who have lower incomes and are comfortable using older technology and media to get and exchange information.
As information technology users, Americans sort into eight distinct groups.
The typology of technology users developed for this report takes into account Americans’ use of information goods and services, attitudes about technology, online behavior, and demographic characteristics. To be specific, our October 2002 survey asked about the following goods and services: Internet, cable television, cell phones, computers, satellite dishes, premium television channels, pagers, digital videodisc players (DVDs), personal digital assistants (PDAs), and digital video recorders (DVRs). Here are the groups, listed from the most tech-intensive users to the least, starting with the three groups that comprise the technology elite in the United States:
The Trendsetting Tech Elite Young Tech Elites: Making up 6% of the U.S. population, these are the heaviest technology users. The average age in this group is 22 years and members are more likely to be male than female. All have Internet access, most have cell phones and DVD players (80% or more), and most are most engaged with the interactive aspects of the Internet, such as downloading music, creating online content, participating in
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online groups, or streaming audio and video clips. Their monthly spending on information goods and services averages $161.1 Older Wired Baby Boomers: This group is 6% of the population, is mostly male, and has an average age of 52 years. These people spend the most money per month of any group (an average of $175), 100% have Internet access, and most (82%) have cell phones. They are very active information gatherers online, especially when it comes to news and work-related research, and they rate high when it comes to online transactions. Wired Generation Xers: This group comprises 18% of the U.S. population and a member of this cohort is as likely to be female as male. Relative to the other two groups in the tech elite, Wired GenXers have less online experience, but they have quickly embraced a wide range of information goods and services. All use the Internet and 82% have cell phones. They perform a range of online activities and are the second most active group (behind the Young Tech Elites) in pursuing the Net’s interactive features. They spend an average of $169 per month on information goods and services. The average age in this group is 36. Wired Senior Men: This is a very highly educated small cluster (1% of the sample) of mostly older men (average age is 70) who have a wealth of online experience, having been online for about 10 years. They limit their online activities to information gathering and some online transactions for ecommerce or finance.
Lower-tech groups Young Marrieds: This group is 15% of the population, with an average age of 24 years and evenly split between men and women. Two-thirds (66%) use the Internet and more than half (56%) have cell phones. Relative to the Young Tech Elites, this group is more likely to be married and have children and less likely to have a college degree. Their average monthly spending on information goods is $124. Low-Tech Older Baby Boomers: This other group of aging baby boomers has an average age of 54 years, is tilted toward women, makes up 21% of the population, and has a cell phone penetration rate that exceeds Internet penetration (60% to 51%). This group has lower-than-average educational and income levels and only a few years of Internet experience. Their average monthly spending on information goods is $124. Unwired Young Baby Boomers: This group makes up 16% of the population. Members of this group are slightly more likely to be women than men and the average age is 39 years. Internet penetration is modest (45%), but 69% have cell phones, which exceeds the national average. Their online habits are broad, but not as deep as others. Many in this group are married, have children, and are employed. They have a positive disposition toward information technologies, but not a lot of
1 Monthly spending is the sum of respondents’ estimates of monthly outlays for: telephone service (including long distance), cell phone service, Internet service, cable service (including premium channels), and payments for online content.
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free time to devote to them. Their average monthly spending on information goods is $125. Low-Tech Elderly: Making up 16% of the population, more than half (58%) of this group is women and the average age is 73 years. Only 12% use the Internet, 39% have a cell phone, and much of their technology use is oriented to “old” media. Fully 68% subscribe to cable, 57% read the newspaper daily, and 78% watch TV news on the average day. The average monthly spending on information goods is $82.
The Internet and computer are the media of choice for many Americans. Computers and the Internet are encroaching on the TV and the wireline telephone as important information and communication tools for a growing number of tech-loving Americans. Here is how the numbers look:
Nearly three-quarters (74%) of the Young Tech Elites say it would be very hard for them to give up the computer, two-thirds (68%) say it would be very hard to give up the Internet, and 58% say it would be very hard to do without their cell phones. By contrast, 56% of the Young Tech Elites say it would be very hard to give up their telephones. Old media trail significantly for the Young Tech Elites. Not quite half (48%) say it would be very difficult to be without the TV, 37% say that about cable TV, and just 12% and 10%, respectively, say this about their newspapers and magazines. For older wired baby boomers, 64% say it would be very hard to give up the computer, with the telephone trailing modestly (57% say it would be very hard to give up their wireline telephones). About half of this group says it would be very hard to be without the TV, email, their cell phones, or the Internet (the numbers are 50%, 49%, 50%, and 55%, respectively, for these categories). The story is mixed for the wired GenXers. Two-thirds (67%) say it would be very hard to give up their wireline telephones, substantially more than say this about the cell phone (45%), the Internet (51%), computer (54%), and TV (46%). For remaining technology users in the United States – that is, people who do not fall into either of the elite categories but who use information technologies – the numbers are very different. The telephone and TV are the communication technologies these people feel would be difficult to do without; 63% say it would be very hard to give up the telephone and 48% say this about the TV. For newer technologies, less than one-third says it would be very hard to give up their cell phones (31%), the Internet (22%), or email (23%).
Technology elites, especially the young, have a very hands-on approach to managing their technology experiences. They are choosy about their Internet service providers, have switched ISPs (some multiple times), and they choose the homepage that is displayed when they click on their
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browsers rather than accept the one the ISP provides. Technology elites also have clear ideas about the type of ISP they want.
Five out of eight of the Young Tech Elites (62%) believe that one ISP is likely to be better than another. They are more than twice as likely to believe this than non-tech elites. Half (51%) of the Young Tech Elites have switched ISPs at least once since they first went online, and 41% of all Internet users have done this. Five in eight (64%) of the Young Tech Elites have switched from the homepage provided by their ISP to one of their choice. Only 30% of the non-tech elites have done this. When asked whether they would like an ISP that is a telephone company, a cable company, or an independent, half of the Young Tech Elites (50%) say they would prefer an ISP that is a cable company, 19% said an independent, and 16% said a telephone company. Non-tech elites reveal no strong preferences; 43% don’t know which they would choose, and the remainder is about evenly divided among preferring an independent, cable, or telephone company.
Use of emerging technologies We asked about emerging technology behaviors such as connecting to the Internet wirelessly, paying for online content, or placing a phone call online. The Young Tech Elites dominate these activities, though wired GenXers are also likely to pay for content online.
One in six (17%) of the Young Tech Elites has logged onto the Internet using a wireless Internet connection, compared with 6% of all Net users. Put differently, though they make up about 6% of the population, about one-quarter of all Americans who have gone online wirelessly are part of the Young Tech Elites. 13% of the Young Tech Elites have paid for online content such as subscriptions to Internet “zines” or music. This compares with 7% of the rest of the online population. 13% of wired GenXers have paid for online content. One in six (16%) of the Young Tech Elites has placed a telephone call online, twice the number for the rest of the online population and greater than the rate for other tech elites.
Wireline telephones The plain old wireline telephone takes it on the chin from some of the Young Tech Elites.
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For cell phone subscribers (62% of all Americans), only a handful – just 3% – say that they have cancelled their wireline telephone in favor of using their cell phone exclusively. Though the impact is still modest for the Young Tech Elites, many more (9%) of these cell phone subscribers (and 80% of them have cell phones) have cancelled their wireline phones in favor of their cell phones. About one-fifth (21%) of all Americans with cell phones say they have “very” or “somewhat” seriously considered canceling a home telephone line since they got a cell phone. This number is the same whether respondents have one or multiple phone lines in the home. This trend is more pronounced for the three groups in the tech elite, especially those with one phone line. Among the tech elite with a single wireline phone in the house, 27% say they have “very” or “somewhat” seriously considered canceling a home telephone line since getting a cell phone. Should Americans, particularly the two-thirds with a single line in the house, follow through with their serious consideration of canceling home phone lines, one can imagine anywhere from 7% to 12% of U.S. households not having a wireline phone. A recent Federal Communications Commission rule requires phone companies to let people use their home number as their cell phone number; this may encourage people to cancel some or all of the wireline telephones into the home. The Internet’s overall impact on telephone calling is somewhat negative. One in five (19%) Internet users and a quarter of the Young Tech Elites say the Internet decreases the number of phone calls they make. Nine percent of all Americans (and 16% of the Young Tech Elites) say the Internet increases the number of phone calls they make.
Consumption of Information Goods and Services in the United States: Summary of Findings at a Glance Americans’ love affair with technology is one of the defining characteristics of our culture. The technology his elites fall into three distinct sub-groups of Americans who are the most voracious consumers of information goods and services in the United States. Most people – 69% of the population – are not part of the technological elite, and they are a fairly diverse crowd. As information technology users, Americans sort into eight distinct groups of information technology users. The Internet and computer are the media of choice for many Americans. Technology elites, especially the young, have a very hands-on approach to managing their technology experiences. Source: Horrigan, John B. Consumption of Information Goods and Services in the United States. Washington, DC: Pew Internet & American Life Project, November 23, 2003.
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Contents
Summary of Findings
Part 1. Introduction
Part 2. Information Products and Services: An Overview
Part 3. What Matters Most to Technology Users
Methodology
Appendix
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Part 1.
Introduction
A defining characteristic of the changing U.S. household has been the growth in consumption of information goods and services. As the average size of the household has declined in the past century, Americans have increasingly filled their homes with tools to send and receive information, including computers, telephones, and digital videodisc (DVD) players. In the 1990s, the average yearly expenditure by Americans for media and information services rose from $365.42 to $640.86 per person, a growth in real terms of 32%. We Americans also spend more time processing information, with a 6% increase between 1990 and 2000 in the time spent on various communications media.2 At home, work, school, and on the road, today’s Americans are far more likely than earlier generations to use information and have close at hand tools to manipulate and distribute it.
The upshot has been a growing need for personal information processing – a need for individuals to have the wherewithal to gather and share information that shapes the decisions they make as consumers, citizens, family members, friends, and neighbors. Today, electronic gadgets and information services are a crucial, and in some cases primary, means by which people conduct personal information processing. The Pew Internet & American Life Project has focused on the online portion of this phenomenon, showing in a number of reports the Internet’s beneficial role in health care decisions, social connectedness, civic and political engagement, and in important life decisions such as choosing a college or buying a house.
In this report, we cast our net more widely by asking Americans more comprehensively the ways in which they engage in personal information processing. The October 2002 survey of 1,677 Americans that is the basis for this report focused on the following personal technologies: Internet, cable television, cell phones, computers, satellite dishes, premium television channels, the pager, digital videodisc players (DVDs), personal digital assistants (PDAs), and digital video recorders (DVRs). We asked people whether they own or subscribe to these information services and how much per month they pay for subscription services. For the Internet, we asked how much they pay for service and how much per month they pay for online content available over the Internet. As is our normal practice, we asked online users about a number of Internet activities available online, as well as questions about how they manage their interface with the Web (e.g.,
2 Information on spending and time use comes from The Statistical Abstract of the United States, 1998 and 2002 editions and extends from 1990 to 2000. The items included in spending and time use categories are: television, radio, recorded music, daily newspaper, consumer books, consumer magazines, home video, movies in theaters, and Internet access.
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what Internet service providers they subscribe to, whether they have switched ISPs, and whether they manipulate the homepage that first appears when they click on their browser).
The perils and promise of personal information processing manifest themselves in everyday ways and also generate considerable buzz among analysts of trendsetting. The cell phone call of the person next to you on the train may annoy, the person tapping something on a personal digital assistant may look odd. Is he typing an email or catching up on the news? You may be that person reading the news on a PDA or connecting to the Internet wirelessly at the coffee shop – and enjoying the easy access to information.
Analysts give different labels to the people and processes involved with personal information processing. Some see a group of “influentials” in society – about 10% of the population – who are information conduits in identifying new trends. These people use a variety of means to connect others to new ideas and information, and they are more likely to have Internet access and use it as a main source for information and communications.3 Others see an emerging “creative class”, an economic grouping of people such as engineers, architects, writers, or musicians, as an underpinning to economic vitality and, at 30% of the workforce, a growing segment of the population. These “creatives” access and exchange information more often than others.4
In a less sanguine take on information’s role in modern society, some worry about the detrimental effects of the “daily me.” When people automatically route information of their choosing to their “daily me” news file, they thereby eliminate the chance of encountering different views and, some feel, jeopardize the health of our civil society.5 Others look at the bright side. The torrent of information we have at our disposal – especially as more becomes available by mobile means – may enable people to interact more effectively. “Smart mobs” are one such example of this phenomenon, whereby people use text messaging to organize heretofore unconnected people. These smart mobs could help foster cooperation in society and enable people to easily determine the reputations of anonymous people and groups. The overall result would be a more trustworthy and better functioning society – one with more social capital.6 More puckishly, we have seen the recent wave of “flash mobs” by which a loose network of people, connected by the Net or cell phones, converge on a site in a city simply for the sake of assembling.
Using information is more important than ever for all Americans.
Whichever way the population is divided, using information is more important than ever. This report charts in detail the information goods and services that Americans consume and how much they pay for them on a monthly basis. Specifically, the report develops a
3 Ed Keller and Jon Berry, The Influentials. New York: The Free Press, 2003. 4 Richard Florida, The Rise of the Creative Class. New York: Basic Books, 2002. 5 Cass Sunstein, Republic.com. Princeton, N.J.: Princeton University Press, 2001. 6 Howard Rheingold, Smart Mobs: The Next Social Revolution. Cambridge, MA: Perseus Publishing, 2002.
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typology of technology users as a way to examine the variation in the intensity with which different segments of the population use technology. In addition to benchmarking what people purchase and how much they pay, the report also looks at people’s perspectives and behaviors regarding the information technology marketplace.
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Part 2.
Information Products and Services: An Overview
For most Americans, multiple information services and gadgets are usually nearby.
Penetration of devices and services nears or surpasses 60% or more in four of the ten technologies categories we queried. As the table shows, Americans approach or top the 60% mark for the Internet, computer use, cable subscription, and cell phones – a first in 2002. Since then, Internet penetration has risen to 63% of all Americans, according to the Pew Internet Project’s July 2003 survey.
For many of these technologies and services, growth has been rapid since 1996. The Internet tends to get most of the cultural buzz, but growth has been equally rapid for cell phones and, very recently, for DVD players. There are also technologies that are in the early adoption phase (e.g., DVRs), and some that are maturing, such as cable TV, home computers, and the Internet. The PDA may be experiencing a plateau or even decline in adoption, even though its penetration rate is not high.7
Some technologies are maturing, such as the cable, computers, and Internet.
There are eight distinct categories of Americans based on their use of information technology.
There is wide variation in the nature and intensity of people’s technology use. We used a statistical technique called cluster analysis to place respondents into distinct categories based on their technology use and socioeconomic characteristics. This yields eight separate categories of users of information technology goods and services. This section describes the categories, proceeding from the most tech-intensive people to the least.8
7 See The Economist “PDA, RIP: The next big thing that wasn’t, or was it?” October 16, 2003. 8 The appendix to this report provides detailed information on technology use by the eight categories described, as well as by other demographic characteristics.
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Penetration Rates of Personal Information Technologies Percent of American households using each technology
1996 1998 2000 2002
Internet 21% 36% 50% 59% Home Computer 58 61 68 69 Cable 69 67 67 62 Cell Phone 24 37 53 62 Satellite Dish n/a n/a n/a 21 Premium TV n/a n/a n/a 35 Pager n/a n/a 24 13 DVD player n/a n/a 16 47 Personal digital n/a n/a 5 11 assistant Digital video recorder n/a n/a n/a 7 Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%. The Statistical Abstract of the United States, 1998 and 2002.
A large part of the analysis in this report focuses on the three most tech-intensive groups, what we call the Young Tech Elites, the Wired GenXers, and the Older Wired Baby Boomers.9 These high-end users are worthy of scrutiny by virtue of the intensity with which they crave information technology and exchange information with others. These are the true leaders when it comes to technology adoption. Independent from their levels of income and education (which are above average), these groups of Americans are bigger spenders on technology goods and services and more ardent information consumers. As the table below shows, these three segments make up about one-third of the population. The remaining two-thirds of the population are less intense in their use of technology for a variety of reasons (e.g., lack of time, lack of experience, relatively low levels of interest in information goods and services).
The Young Tech Elites, Wired GenXers, and Older Wired Baby Boomers crave information technology and are the true leaders when it comes to technology adoption.
9 “GenXer” refers to people who were born between 1965 and 1980 and who are commonly known as members of Generation X. The analysis excludes Older Wired Men because, as noted, the number of respondents in this category makes meaningful statistical discussion difficult.
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Leaders in Technology Adoption Group name Description % of Mean % Internet Monthly Sample Age users spending on information services* Broad and deep Young Tech users of technology, 6% 22 100% $161 Elites largely male Older Wired Heavy tech users, 6 52 100 175 Baby Boomers mostly male Evenly split between Wired men and women, 18 36 100 169 GenXers broadly engaged with technology Small cluster of Wired Senior older ardent tech 1 70 100 124 Men users Opposites of Young Tech Elites – Young modest tech use, 15 24 66 124 Marrieds mostly women, lower income Low-Tech Opposites of techie Older Baby boomers, little tech 21 54 51 124 Boomers use, mostly women Disposed toward Unwired technology, little Young Baby 17 39 45 125 Boomers free time to use intensely Low-Tech Mostly women, use 16 73 12 83 Elderly “old media” Average Entire sample 100 45 59 122 Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%. * Monthly spending is the sum of respondents’ estimates of monthly outlays for: telephone service (including long distance), cell phone service, Internet service, cable service (including premium channels), and payments for online content.
1. Young Tech Elites — artistic, urban, wired, and mobile
This group makes up just 6% of the entire sample, but it is the most technologically sophisticated of any group. Fully 100% of this group has Internet access, and they far exceed the national average in other ways, with 80% having cell phones and 82% having DVD players at home. They are more than twice as likely than the average American to have PDAs (26% do), and are even more likely to have a declining technology service, the pager, than average (18% to 13%). As for TV, 69% have cable TV, slightly more than the norm, 25% have a satellite dish (compared with the 21% average), and 51% subscribe to some premium TV channel, which exceeds the national average of 35%.
Demographically, this group is young – the average age is 22 – and predominantly male (57%). As a group, they are well-educated or on their way to being so; 32% have college
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degrees (versus 25% of the general population) and 48% are students (versus 14% of the all Americans age 18 and over). Even though they are just embarking on their careers, this group does fairly well financially, having household incomes that are a bit above the national average.10 Finally, this youthful group has a creative bent and prefers to live in cities. About one-third (34%) say they practice an artistic activity of some sort, about double the national average of 17%. Nearly half (43%) live in urban areas compared with 27% of all Americans.
A closer look at how this group uses technology shows the breadth of its engagement with information technology. Of the 10 information goods and services about which we queried, this group has or subscribes to an average of 5.9 of them, which is above the national average of about 4.3. Of the 13 online activities we asked about in our October 2002 survey, members of this group had tried 7.0 of them, above the average of 5.1 for all Internet users.11 A large share goes online using high-speed connections at home (39% versus 21% of all users on October 2002), making it easy for many in this group to go online several times a day (41%, compared with 23% for all Internet users). And they have a wealth of online experience; on average they have been online for about 7.0 years, well above the 5.2 years of Internet experience of the average user.
Members of this group are the most active Internet surfers in a number of categories. Most notable is this group’s predilection to download information from the Internet and post it online, which suggests a depth of technology engagement. Two-thirds of this group (69%) has downloaded music from the Internet, more than twice the average (32%) for all users. For streaming audio or video clips, 82% have done this compared with 53% for all users. About one-third (35%) have gone to an online group, which is twice the average for Internet users, and 44% have created content for the Internet compared with 19% for all Internet users. This group also goes online for news. On the average day, 39% of these users get news online (versus 26% for all users), which approaches the frequency with which they read the newspaper on the typical day; 45% of this group reads the paper on the average day which is about the national average of 41%.
Some of these users also exhibit cutting-edge online behaviors, suggesting a willingness to continue to fold technology into their lives. One in six (17%) have gone online using a wireless connection (only 6% of all Internet users have done this) and 16% have placed a phone call online (compared with 8% of all users). And some of these users are starting to pay for content on the Internet; 13% have done this versus the 8% average.
Not surprisingly, this group spends more on a monthly basis for communications goods and services than average. Taking together respondents’ estimates for their monthly spending on telephone service (including long distance), cell phone service, Internet
10 The anomaly of this group of young people having incomes greater than average is due possibly to some members of this group still living with their parents and others living in group-housing situations. In both instances, the total household income may reflect more than respondents’ individual incomes. 11 The Internet activities for this analysis are: email, news, music downloading, online purchases content creation, online banking, streaming an audio or video clip, getting political news online, work-related research, making an Internet phone call, going to an adult Web site, and paying for online content.
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access (including, where applicable, broadband), cable TV (including, where applicable, premium channels), and online content, the Young Tech Elites spent $161 on average. This is about 30% more than the average for all Americans, which is $122.
2. Older Wired Baby Boomers – well-to-do empty nesters
This group makes up 6% of Americans. They are essentially yesterday’s technological elites who have maintained their sophistication over time. Thirty years ago, they might have been the first in their neighborhood to have cable TV, or they might have been barking “breaker, breaker” into the CB radios in their cars. They are a generation older than the first group (the average age is 52) and, like that group, dominated by males (60%). In a number of ways, their technology use mirrors that of the young sophisticates. All of them (100%) use the Internet, 82% have cell phones, 68% subscribe to cable, 67% have DVD players (fewer than the young group but well above the national average), and 42% pay for at least one premium TV channel. Like the first group, 28% have PDAs and 25% are still hanging on to their pagers.
Demographically, this is a well-off suburban or urban crowd. Three in five live in households with annual incomes exceeding $75,000, three times the national average of households in that category. More than half (57%) live in suburban areas (compared with 50% nationally) and 28% in cities (versus 27% nationally). Most are married (69%) and employed (81%), which contrasts with the national averages of 54% and 61% respectively. One-quarter (30%) have children under age 18 living at home, which is below the national average of 36% and lower than several similar groups to be discussed later. Finally, this is a highly educated group; 56% have at least a college degree in contrast to 25% of all Americans.
The demographic portrait suggests that these are people who are financially secure, technologically literate, and, with kids out of the house or soon to be, able to enjoy a variety of information goods and services. Like the Young Tech Elites, people in this group on average have 5.9 of the 10 information goods and services we asked about. They have tried, on average, 5.9 different Internet activities out of the 13 we queried, and they have been online for an average of 8.8 years. Many have switched to broadband at home (26%), and three in eight (38%) log on several times a day.
Looking specifically at this group’s online activities, there is an emphasis on information gathering and evidence of less wide-ranging experimentation online in comparison with the Young Tech Elites. Fully 88% have gone online to get news and 49% do so on a typical day, well above the average of 26% of Internet users who get news online on a normal day. Three in five (57%) read the newspaper on the average day, half again above the national average. Three-quarters of this group (76%) check email on the average day, in contrast to 50% for all users. This group is also the most likely to have bought something online (79% have versus 61% of all online users) and to have done work- related research online (72% have versus the 51% average). However, they do not download music in large numbers (26% versus 32% for all users), and they are at about
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the average for all Internet users when it comes to creating content, streaming audio or video, placing a call on the Internet, paying for online content, or going online wirelessly.
With ample disposable income to purchase information goods and services, it is no surprise that this group has the highest monthly outlays for these things. On average, this group pays $175 per month for various information services, which is 43% greater than the average for all Americans.
3. Wired GenXers — busy lives, gadgets, and information help
This group makes up the largest share of the tech elite, with about 18% of the total U.S. population and three-fifths of the tech elite. This is a group of people in their mid 30’s – the average age is 36 – and, like others this age, they have a lot going on in their lives. Two-thirds (66%) are parents, 71% are married, and 82% are employed – all figures that exceed the national averages. A distinctive demographic trait in this group is gender. Whereas other tech-intensive groups are dominated by males, this one is essentially split 50-50 between men and women; 51% of this group are male. This group is also predominantly white (85% are) and, like Older Wired Baby Boomers, likely to live in the suburbs.
With their busy lives comes a reliance on technology. All GenXers use the Internet, and many of them (27%) have high-speed connections at home, above the 21% average when this survey was conducted. Four out of five (82%) have cell phones, two-thirds (66%) subscribe to cable and are well plugged into the DVD trend (64%), and one-quarter (25%) use PDAs. This is also the most contented group of all; 56% are satisfied with the direction the country is heading, versus the 40% average at the time of the survey.
Perhaps because of their busy lives, Wired GenXers are a little less engaged with technology than the other two tech elite groups. Out of the ten communication goods and service about which we asked, this group has 5.6 of them, compared with 5.9 for the other tech elite groups. Out of 13 Internet activities, members of this group on average have tried 5.9 of them, versus 7 for the Young Tech Elites.
The Internet usage patterns for Wired GenXers suggest that the online world offers them a way to get things done. Fully 77% have bought something online, 67% have done work-related research on the Internet, and 42% have done banking online, all figures substantially above the average. Wired GenXers are also willing to pay for content online; 13% have done this, which mirrors the Young Tech Elites. Relative to the other two tech elite groups, however, the Wired GenXers are less intense in Internet use. Fully 42% of the Young Tech Elites and Older Wired Baby Boomers log on to the Internet several times a day versus 29% for Wired GenXers. And although most (79%) Wired GenXers have gone online for news, only one-third do so on the typical day, which is above average for all Internet users (26%), but below the average for Older Wired Baby Boomers (49%) and the Young Tech Elites (39%). Still, Wired GenXers are spenders
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when it comes to technology; their average monthly expenditure for information goods and services is $169.
4. Wired Senior Men – the ardent, aging news hounds
Internet adoption is low among senior citizens (those over age 65), with only 16% of older Americans online, and adoption of many modern information goods and services is low in this age group. However, there is a very small cluster of senior citizens – two- thirds of them are men – who have embraced these technologies. This cluster makes up just 1% of the sample, which makes broad statistical statements difficult. But nearly all of these wired seniors have Internet access at home (mostly using dial-up connections) and a large majority has cell phones, cable TV, and premium channels. Demographically, this group tends to be white, more likely to live in rural areas, retired, well educated, and financially comfortable.
With respect to their Internet use, this group has a wealth of online experience – these users have been online for about 10 years – and online activities tend toward simply getting information online. They are frequent news gatherers online and surfers for political news. They also will do transactions online, whether that means buying products over the Internet or doing banking online. They rate low when it comes to some of the more au courant Internet activities, such as music downloading, content creation, and purchasing online content. And their monthly spending on communications goods and services is only on par with the national average of $124. All in all, this small group of older Americans belies the notion that senior citizens are a monolithic group who are indifferent to new information goods and services.
5. Young Marrieds – less disposable income for technology
This group is the non-tech counterpart to the very highly wired Young Tech Elites. The group, at 15% of the population, is about twice as large as the Young Tech Elites group and roughly the same age; the average age for this group is 24. However, about 66% use the Internet, about average in the sample, but below the average of 76% for the 18 to 24 age cohort. Similarly for cell phones: 56% of this group has cell phones, somewhat below the average and 8 percentage points less than the 18 to 24 age group. The story is much the same for cable TV and satellite TV, with this group all lagging the national average with penetration rates of 54% and 20%, respectively. This group is slightly more likely to subscribe to premium TV channels; 40% do.
Two socioeconomic factors are likely at play in the lower use of information goods and services within this group: lower levels of educational attainment, and lower-than- average incomes. Only 12% of this group has college degrees and just 40% classify themselves as students; the figures for the Young Tech Elites are much higher at 30% and 61%, respectively. It is thus not too surprising that income levels are low for this group, with 28% having household incomes below $20,000 per year, greater than the national average of 19%.
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Additionally, several other demographic facts stand out for this group. First, it is racially diverse. One in five (22%) are Latino (versus 10% among Young Tech Elites) and 16% are African American, compared with 13% for Young Tech Elites. Second, two in five (34%) are married, significantly higher than the rate for the Young Tech Elites (20%) and 38% are parents, far greater than the 13% of Young Tech Elites with children. Finally, it is equally divided between men and women. Although this reflects the general population, the tech elite groups tend to include more men than women.
All these factors translate into low-intensity use of information goods and services among members of this group. The scope of use is not great; this group has 4.2 of the 10 information goods inquired about, roughly the national average of 4.3 and below that of the Young Tech Elites, who have nearly 6 on average. They have tried only 4.1 out of the 13 Internet activities, much lower than the 7.0 attempted by Young Tech Elites. Looking at specific activities, this group lags in most categories, from information gathering to transactions. Only half (51%) have gone online for news (versus the 68% average) and 30% for work-related research (versus the 51% average). About three in eight (38%) have bought something online and 21% have done banking online, both well below average. Only in entertainment activities does this group measure up or exceed the norm; 44% have downloaded music (32% of all Internet users have) and 54% have streamed an audio or video clip (53% of all Internet users have done this).
Much of this modest Internet usage is attributable to their relative online inexperience. On average these users have been online for 3.2 years; the average for all Internet users is 5.2 years and the average for the Young Tech Elites is 6.7 years. Overall, this group does not spend much more monthly than the national average on information services; the group’s spending comes to $127 per month while the average is $122.
6. Low-Tech Older Baby Boomers – cell phones and cable TV, but lower Internet penetration
Just as the Young Marrieds represent a natural contrast to the Young Tech Elites, this group readily contrasts with the Older Wired Baby Boomers, the 50-ish group of mostly males who consume a wide range of information goods and services. The average age for the “unwired” middle-aged boomers is 54, but they are mostly women (56%) and they make up about 21% of the general population. Half (51%) are Internet users, which lags the average by about 9 percentage points. About 60% of Low-Tech Older Baby Boomers have cell phones, 61% subscribe to cable, one-quarter has satellite dishes, and 25% purchase a premium TV channel. Only 5% have PDAs, and this group trails in home DVD players (37%) but are right there with the early adopters of digital video recorders (8% in this group have one versus the national average of 7%).
Relative to their mostly male, 50-ish counterparts among the Older Wired Baby Boomers, 59% of whom graduated from college, this group has a low level of educational attainment. Only 22% have college degrees. This group is less likely to be married than their male counterparts (63% versus 71%) and is more likely to have
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children under 18 at home (33% do versus 24% in the heavily male group). There is a sharp difference in income levels, with only 23% of this group having household incomes over $75,000 annually compared with 60% of the Older Wired Baby Boomers. That said, this group of 50-ish women have household incomes just slightly below the national average. Finally, this group is heavily rural relative to the Older Wired Baby Boomers; 26% of this group lives in rural areas compared with 15% of males in the late boomer cluster.
As for intensity of technology use, this group is not unlike the Young Unwired Baby Boomers (see below). They have tried 4.1 out of the 10 information goods and services we queried and have tried an average of 3.9 of the 13 Internet activities as opposed to 4.0 for the prior group. The slightly smaller scope of Internet activities (relative to the prior group) is due to this group’s indifference toward entertainment activities such as music and audio and video streaming. This cluster has only 3.7 years of Internet experience, below the national average of 5.2 years. Their monthly spending on communications goods and services is right at the national average of $124.
7. Unwired Young Baby Boomers — communications and entertain devices, but not Internet
This group forms the less tech-intensive counterpart to the Wired GenXers, although the typical member of this group, whose average age is 39, is at the very youngest end of the baby boom generation. With 17% of the U.S. population, it is a group that is more racially diverse than Wired GenXers (14% of this group is black and 13% is Hispanic compared with 7% and 10% respectively for Wired GenXers). But this group has lower educational levels (15% have college degrees or more) and lower incomes than Wired GenXers and the national average. Unwired Young Baby Boomers are also a bit more likely to be women (53% are).
As for technology use, this group lags when it comes to the Internet, but matches or exceeds the average for several communications and entertainment devices. Only 45% of this group has Internet access, but Unwired Young Baby Boomers come in at the average for cable subscription rates (62%) and DVD players at home (47%) and above average for premium TV channels (26%) and cell phone use (69%). Overall, they are close to the average of information goods and services purchased out of the 10 we asked about; this group has 4.1 on average versus 4.3 for all Americans. Their average monthly spending on information goods and services is $124.
This group’s Internet usage patterns are tepid. Only a quarter (27%) check email on the average day, which is about half the national average, and just 9% check news online on the average day, which is one-third the national rate. For other Internet activities – such as purchasing products online, work-related research, or getting political news – members of this group significantly lag the average for all Internet users. Lack of online experience is one reason; the average person in this group has been online for 2.9 years, which is about
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half the tenure for Wired GenXers. And nearly all of Unwired Young Baby Boomers connect to the Internet by dial-up modem, which inhibits extensive online use.
8. Low-Tech Elderly – old media
This final group – about 16% of the population – is a group of older and mostly female Americans who rely on old media for communications and information. The mean age for this cluster is 73 and most (58%) are women. But only one in eight (12%) has Internet access and just 39% have cell phones. Yet this group rates fairly well when looking at traditional communications media. Fully 68% subscribe to cable TV (above average), although only 14% buy premium channels (well below average) and few have embraced DVD players (only 17% have them). They are at the norm on the diffusion curve for home digital video recorders, with 8%. Nearly four out of five (78%) watch TV news on the average day, and 57% read the newspaper, figures which exceed the national average.
With the fairly traditional media use profile, it is not too surprising that the small share of Internet users in this group gravitates toward basic information gathering online. Members of this group are about as likely as the average Internet user to check email or go to an online news site on the typical day. They seem particularly interested in politics and public affairs, with 54% having gone online for information about this, which is above the average (45%) for all Internet users. In activities that require greater technical competence, such as downloading music files, creating content, and even doing online transactions, this group lags substantially behind the average for all Internet users.
Overall, this group does not demonstrate a high level of interest in purchasing and using information goods and services. The average monthly bill for communications goods and services comes to only $82 for this group, which goes hand-in-hand with the group’s low income level. Fully 40% live in households with annual incomes under $20,000, more than twice the national average. And of the 10 communications goods and services we ask about, the average member of this group has 2.7 – below the average of 4.3. When it comes to Internet activities, the small percentage that have access have not ventured too far on the Internet; the average number of Internet activities is 3.2, well below the national average of 5.1 for the 13 activities we queried. Relative lack of online experience is the likely reason; the average member of this group has been online for 3.0 years, well below the average.
Wired women like tools to communicate, not gadgets to show off.
In the groups discussed above, the groups that are mostly male tend to be the ardent technophiles, while those that are mostly female use technology less intensively. This elides the fact that substantial numbers of women in the United States are active and enthusiastic consumers of information goods and services. In fact, 46% of the tech elite are women – whether among the Young Tech Elites, Wired GenXers, or Older Wired Baby Boomers. Comparing tech elite women to their male counterparts reveals some interesting contrasts within this most tech-oriented segment of the population. In very
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broad terms, tech elite women seem more enthused about the information technologies that enable communication and perhaps less enthralled with the latest hardware.
Techie women are more likely than techie men to say that it would be very hard to give up email, by a 52% to 44% margin. By contrast, when asked whether it would be very hard to do without the Internet, 49% of techie women say this, while 60% of their male counterparts do. For phone calling, cell or wireline, there are some cross currents. Fully 70% of tech women said it would be very hard to do without a telephone compared with 56% of tech men. For cell phones, half of tech men say it would be very hard to do without one while 46% of tech women said this. Techie men and techie women are about as likely to have cells phones (82% and 81%, respectively). Techie women are less likely to have the hardware gadgets that one might clip to the belt (excepting cell phones), than techie men. One-quarter of techie men have pagers, versus 16% of techie women, and about one-third (31%) of techie men have PDAs compared to 15% of their female counterparts.
As for intensity of technology use, tech elite women, by several measures, also appear to be less intensive users of information technologies than their male counterparts. Tech women have tried 5.8 out of the 13 Internet activities in our survey, while tech men have attempted 6.6. Tech men purchase on average 5.9 of the 10 information goods and services we asked about, while tech women come in at 5.6. These differences show up in monthly spending on communications goods and services; tech elite men spend $177 per month on average while tech elite women spend $158. There are also differences in Internet connection speed; techie men are more likely than techie women to have broadband Internet connections at home, by a 34% to 23% margin.
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Part 3.
What Matters Most to Technology Users
With the proliferation of communications devices and services, it is worth examining the relative strength of preferences among Americans for their gadgets and services. Although the technologies by which people receive and process information may be converging, there is no reason to think that people’s attitudes about them are monolithic across technologies or the groups of technology consumers we have identified.
Americans are reluctant to part with some old media and some new, but traditional print media don’t fare well.
We asked respondents how difficult it would be to give up the following communication and media items: telephone, cell phone, TV, cable TV, computer, Internet, email, personal digital assistant, newspaper, and magazine. In looking collectively at the responses, the old media fare rather well. The wireline telephone at home tops the list – nearly two-thirds (64%) of all Americans say it would be very hard to give up their telephones. Television comes in second with about half (48%) of Americans saying it would be very difficult to do without TV.
Next, in order of preference, comes a group of new media gadgets or services. Anywhere from 36% to 40% of users would find it very hard to give up the computer, the Internet, cell phone, and cable TV. The PDA, however, is something of an outlier: only a minority of those who have it say would be hard to part with; only 24% of PDA users say it would be very difficult to give it up.
Americans find several traditional media least important to them. Only 19% of Americans say they would find it hard to give up the newspaper and only 13% say it would be difficult to give up their favorite magazine.
Media preferences vary among the eight categories of technology users.
Young Tech Elites: attached to new media
For the Young Tech Elites, the pattern of media preference is essentially the mirror image of the national average. Young Tech Elites would find it harder to give up their wireline phones than their cell phones. By a large margin, they would find it more difficult to give up their computers or the Internet than their TVs or their cable subscriptions. Nearly three-quarters (74%) of the Young Tech Elites say it would be very hard to give up their computers, and 68% say the same about the Internet. By contrast, 48% say it would be very hard to do without TV and 40% say that for cable TV. Suggestive of how Young
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Tech Elites communicate with others, about as many say it would be very hard to give up email as say that about the telephone (57% for email, 56% for telephone). And as many say it would very hard to give up the cell phone (58%) as say that about email or the telephone. Finally, the Young Tech Elites do not value old media highly – only 12% say it would be difficult to give up the newspaper and 11% say the same about magazines.
Americans’ Media Preferences % who say it Young Older Wired Wired The would be “very Tech Baby Gen- All Rest hard” to give up Elites Boomers Xers Computer* 74% 64% 54% 25% 40% Internet* 68 55 51 22 39 Cell phone* 58 50 45 31 38 Email* 57 49 44 23 36 Telephone 56 57 67 63 64 Television 48 50 46 48 48 Cable TV* 40 25 34 40 37 PDA* 23 32 26 15 24 Newspaper 12 21 14 17 19 Magazine 11 16 11 11 13 % respondents 6% 6% 18 70% 100% Source: Pew Internet & American Life Project October 2002 survey of 1,677 Americans, margin of error is ±2%. *Asked only of those who use this particular technology.
Wired Older Baby Boomers: wed to computers
While new media is usually associated with youth, it is surprising to find new media looming very large for some older Americans. For Wired Older Baby Boomers, the computer is the technology that would be hardest to give up, with 64% saying it would be very difficult to be without a computer. Bunched behind the computer are both the telephone and the Internet, with 57% and 55%, respectively. A bit farther back comes the cell phone, the Internet, and TV, with about half of Older Wired Baby Boomers saying in each case that it would be very difficult hard to give these up. The PDA even occupies an important space for aging boomers; 32% say it would be very hard to give theirs up, well above the rate for the Young Tech Elites (23%) and the national average (24%). For aging boomers, the PDA is more important to them than cable TV, as 25% say they would have a very hard time doing without cable.
Wired GenXers: attached to wireline telephones
For Wired GenXers, the old media–new media distinction is not quite as clear. By a large margin, the telephone is the item that Wired GenXers would find hardest to do without; 67% say this, with the computer coming in next, with 54% saying it would be very hard
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to do without that. Perhaps because they are at a more stationary time of life, with kids and (relative to the Young Tech Elites) more stable job situations, the Wired GenXers highly value the wireline telephone. Still, Wired GenXers value the Internet more than TV, although they seem less attached to email than the other two tech elite groups.
Older and younger tech elites differ in the way they gather news and seek content online.
The primacy of new media for the Young Tech Elites shows up further when looking at newsgathering and who pays for online content. Not many Internet users pay for online content – only 8% – but the Young Tech Elites and Wired GenXers are more likely to do this than any other group (13% of each group). Older Wired Baby Boomers, by contrast, come in at about average with 9%. The greater tendency among the Young Tech Elites and Wired GenXers to pay for content is consistent with their preference for new media newsgathering. The Young Tech Elites are nearly as likely on the average day to get news online as from a newspaper; 39% get news online on the average day while 45% read a newspaper.
The Older Wired Baby Boomers, by contrast, are more likely to read the paper on the average day than to go online for news, by a 57% to 49% margin. They are more likely to both get news online and from a newspaper on the typical day (29% do) than the Young Tech Elites (21%) or Wired GenXers (19%) do. Older people tend to be more habitual news hounds than young people, and these findings indicate that the Older Wired Baby Boomers supplement newspaper reading with online sources. The Young Tech Elites and Wired GenXers, by contrast, seem more likely to turn first to the online world for news and, to a modest degree, to pay for it.
For the remaining groups – about 70% of the population – technology and media preferences line up as one would expect. The telephone and TV rank as items people in these groups say would be hardest for them to give up. In general, the older groups value the telephone the most (76% say it would be very difficult to give up the telephone) followed by the TV (55% say it would be very hard to give up their TVs).
People’s information technology use often reflects their life stage and their relative mobility.
Some of the differences in relative preferences across the groups of tech elite are likely due to people’s stage of life. Young people, especially students, are more mobile and have less entrenched consumption habits than older people. The cell phone fits right into this lifestyle. In thinking about the cell phone versus the wireline phone, the choice for many of these people may be easy, especially for students with access to the Internet and other media subsidized by their colleges. The Older Wired Baby Boomers are overlaying new media onto established habits of information consumption. Thus, it is no surprise that the telephone continues to occupy a prominent place for this group, though it remains
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notable that the computer and Internet have risen to a high level importance for Older Wired Baby Boomers.
A good deal of the contemporary discussion about media focuses on convergence – speculation that TV will be piped to the computer via the Worldwide Web, that TV will provide Web access, and that each might be available on the cell phone, PDA, or wireless laptop. While the devices and services may already (or will soon) provide the same information in similar formats, the findings above, particularly for the Young Tech Elites, suggest that the means of delivery are important.
The technology elite take a hands-on approach to their online experience.
With the emergence of an elite group of technology users, it is understandable that these people actively manage their technology experience. When it comes to the Internet, the technologically sophisticated – especially the Young Tech Elites – exhibit discriminating tastes in choice of Internet service provider and the choice of homepage that is first displayed when they click on their Web browsers. This has obvious competitive implications for ISPs, as the behavior of the Young Tech Elites indicates that ISPs will have to work diligently to retain these high-end customers. There are also implications for policymakers and business models with respect to rules that govern the degree of control ISPs may have over online content, such as users’ homepages.
Provider Preferences of the Technology Elite Young Wired Older The Tech GenX- Wired Rest Elites ers Boomers One ISP is better than another 62% 58% 54% 24% (% yes) One cable company is better than 28 20 19 15 another (% yes) One telephone company is better than 22 23 21 22 another (% yes) Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%.
Looking specifically at whether Internet users think one ISP is likely to be better than another, there are noticeable contrasts between the three tech elite groups and other Internet users who are not experienced and heavy users. Fully 62% of the Young Tech
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Elites says they think one ISP may be better than another and all three tech elite groups are more than twice as likely than other groups to think that one ISP is better than another. Differences between the tech elite and non-elite in perception about the variation in quality across telephone or cable companies are not that great, although the Young Tech Elites are more likely than everyone else to perceive differences in cable companies.
Type of ISPs Preferred by Different Groups Young Wired Older Wired The Tech GenX- Boomers Rest Elites ers Independent 19% 28 31% 19% Telephone 16 16 18 18 Cable 50 27 21 18 Don’t know 15 29 31 45 Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%.
We asked all Internet users whether they would prefer an independent ISP, one run by a phone company, or one run by a cable company. Fully 50% of the Young Tech Elites said they would prefer to have their Internet service come from a cable company, more than twice the rate for the non-tech elite. This is mainly because Young Tech Elites are more likely than average to have home broadband connections and about two-thirds of home broadband users connect by cable modems.
Tinkering with the interface and switching ISPs
The evidence indicates that most Internet users (by modest margins) have not changed ISPs and continue to have the homepage provided by their ISPs come up on their screens when they log on. But there are sharp differences between the tech elite and the non-tech elite.
Let’s first look at the process people undergo in switching (or not) the homepage provided by their ISP. Among all Internet users, most – 57% – say that the homepage that displays on their browser is the one provided by the ISP. About 4 in 10 (42%) of Internet users (and 30% of the non-tech elite) have made the choice to switch the homepage they see when they log on. Among those who have not switched the homepage, many do not know how to switch the ISP-provided homepage – 40% of all Internet users can do this or 38% of the non-tech elite. Looking at the numbers differently, about one-third (34%) of all Internet users actively choose to have ISP-chosen homepage display on their browsers; the rest have either switched by choice or don’t know how to switch.
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Tinkering with the Interface Percent of home Young Wired GenX- Older Wired The Internet users Tech ers Boomers Rest who . . . Elites Homepage is same as what ISP 44% 54% 51% 62% provided Has switched from ISP-provided 64 51 55 30 homepage Knows how to switch homepage 59 45 48 34 on browser Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%.
For the three groups that comprise the tech elite, however, the numbers line up very differently. Fully 64% of the Young Tech Elites switch the homepage provided by their ISP, well above the 42% average for all users and more than twice the rate of 30% for the non-tech elite. Fully 59% of non-switchers know how to change the page, approaching twice the rate of non-tech elite (34%). For the Young Tech Elites, just 18% actively choose to display the homepage that their ISP provides them. The “sign on” Web page, which ISP may consider an important piece of real estate to branding their presence with customers, is not that important for the Young Tech Elites —about half as important as to the average Internet user.
Switching ISPs Young Wired GenX- Older Wired The Tech ers Boomers Rest Elites % who have 51% 51% 52% 29% switched ISPs % who have switched ISP more 60 61 63 52 than once* Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%. * of those who have ever switched ISPs
Looking at whether people change ISPs, 29% of non-tech elite Internet users have switched ISPs at one point, and among switchers, 52% have switched multiple times. For all Internet users, 41% have changed ISPs at some point, and 59% have done so more than once.
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The story is reversed for the three groups in the tech elite. Half (51%) has switched ISPs at one point, 61% of switchers having done so more than once. Although the tech elite’s switching behavior is mostly attributable to their length of time online, some of it is attributable to the kind of people these users are.
As the most ardent personal information processors, Young Tech Elites are disposed toward tinkering with their online experience, whether in the choice of ISP or homepage. The ability to choose one’s own homepage matters to most of the Young Tech Elites. However, for Internet users at large, whether by choice or lack of knowledge, most stay with the homepage ISPs provide, suggesting that this is fairly valuable piece of real estate on the Web.
The number of wireline telephones has decreased for the first time in history.
A concern among traditional providers of wireline telephone service is that new technology services will undercut their business. In fact, there is evidence that this is true: the number of wireline telephones in service in the United States is, for the first time in history, declining. Telephone penetration in the United States seems at a saturation point, with 95% of Americans having a phone in the home. About one-third of all American households have more than one telephone line, whether that line is for a fax machine, Internet access, a home office, or a teenager. This figure has remained roughly the same since early 2001. The era of adding phone lines – whether it’s for the teenager or the Internet connection – seems to have passed with the advent of cell phones and high-speed connections. The result, according to the FCC, has been a decrease in the number of wireline telephones in the United States by 5 million, or a 3% drop.
Our findings are not inconsistent with the notion that the proliferation of communications means and devices may result in a decrease in the number of telephone lines coming into the home. Overall, 3% of the respondents who have a cell phone said that they have actually cancelled a home telephone line with the intent of using a cell phone as their means of telephonic contact with others. (Because only cell phone users were asked this question, this means 2% of all respondents have cancelled a home telephone line.) Of cell phone users who have not cancelled their wireline telephone, 7% have very seriously considered giving up their home telephone line, with another 14% having somewhat seriously considered this.
Among the Young Tech Elites, there is evidence that this high-tech cohort is ready for a “one provider” solution that may, for some at least, result in the elimination of traditional telephone service. About 9% of the Young Tech Elites with cell phones (or 7% of all Young Tech Elites) have cancelled a wireline phone in favor of their cell phones; although still small, it is higher than the national average of 3%.
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In light of this FCC’s ruling about the portability of telephone numbers, one can easily imagine an accelerating trend to do away with the home telephone line. This is especially true for the three groups that make up the tech elite. Tech elites are more likely to have broadband than others, use a cable company for high-speed service, and, especially for Young Tech Elites, prefer a cable company for such service. Among tech elite households who report that they have one telephone line currently, 27% say they have “very” or “somewhat” seriously considered canceling it because of a cell phone. For non- tech elite households, that number is 19% among single line households. Looking at the data differently, one could imagine anywhere from 7% to 12% of U.S. households not having a wireline telephone if people follow through on their “serious” consideration of canceling a line.12 The FCC’s new rule makes it much easier to do this.
The Internet’s Impact on Phone Calling Young Wired Older Wired Tech GenXers All Boomers Elites % who say the Internet increases 16% 11% 10% 9% number of calls % who say the Internet decreases 24 20 31 19 number of calls % who say the Internet has no 60 68 58 69 impact on number of calls Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%.
Other indicators portray a shift away from wireline phone service as a way to connect with people. Although most of the Young Tech Elites (59%) say the Internet has not affected the number of phone calls they make from home, 25% says that the Internet has decreased the amount of phone calls they make, with 15% saying the Internet has increased the amount of phone calls they make. A few seem to be making calls on the Internet instead of the telephone; one in six (16%) of the Young Tech Elites have made a phone call via the Internet (twice the 8% average).
Finally, the Young Tech Elites seem disposed to a “one provider” solution no matter what the Net’s impact on their phone calling. Fully 41% currently pay for their Internet access in conjunction with another service, such as cable or telephone, well above the 29% figure for all home Internet users.
12 If all those with one home phone line who have considered (somewhat or seriously) canceling a line due to a cell phone were to do so, that comes to 7% of all U.S. households. The upper bound estimate of 12% includes people who currently have multiple phone lines, say they have considered canceling lines, and it assumes they cancel all wireline phones.
Consumption of Information Goods and Services - 22 - Pew Internet & American Life Project Part 3. What Matters Most to Technology Users
If the Young Tech Elites are a harbinger of future phone calling patterns, this suggests that there are some risks for telephone companies in the offing. One can easily imagine a significant share of Young Tech Elites doing without a home telephone in the traditional sense, but rather using a cable company for the high-speed Internet connection and cable TV service, using the cell phone for telephone conversations (and perhaps text messaging), and occasionally placing a phone call online. The wireline phone doesn’t fit into this portrait of how communications needs are met for the Young Tech Elites. And, as noted, this group shows a preference for paying their communications bill to one company and most prefer the cable company for an ISP.
The technology elite have high-speed connections.
One of the many distinctive characteristics of the technology elite is that they have high- speed Internet access at home. As of October 2002, nearly one-third (29%) of the technology elite – that is, the Young Tech Elites, Wired GenXers, and Wired Older Baby Boomers – have broadband access at home, compared with 17% of non-tech elite Internet users. As noted earlier, the Young Tech Elites are disproportionately heavy broadband users, as 39% of them have high-speed home connections.
We asked all home broadband users several questions about their transition from dial-up to broadband and what they value about their high-speed connection. Specifically, we asked whether users switched ISPs when they moved to broadband, whether they cancelled a telephone line upon getting broadband at home, and whether speed or the “always on” connection matters more to them.
Among all broadband users, 16% cancelled a phone line once their home broadband connection was installed, a figure that is about the same for the tech elite and non-tech elite alike. Most (61%) broadband users also switched ISPs after getting broadband at home. And most (76%) say they value the connection speed more than the “always on” character of the connection; 17% say they like “always on” the most while 4% like them both equally. The technology elite make up about one-third of the general population but make up two-thirds of broadband users. Among this group, the only notable difference came in switching ISPs. Fully 70% of those in one of the three tech elite groups switched ISPs upon getting broadband at home, while 44% of non-tech elite broadband users did this.
AOL remained the market leader among ISPs.
In addition to probing people’s attitudes about choice and behavior vis-à-vis ISPs, we gathered basic market data about the ISPs to which Internet users subscribe. As of October 2002, 28% of all U.S. Internet users subscribed to America Online (AOL). AOL is clearly the market leader, with all competitors registering in the single digits. MSN comes in second with 8% of Internet users, followed by AT&T Worldnet with 4% and
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Earthlink/Mindspring with 3%. The scattering of independent ISPs make up the preponderance of the balance, with 25% of Internet users falling into the “Other” category for ISP subscribership.
Market Shares for Internet Service Providers Low-Tech Unwired Young Older Wired Young Older Young All Tech Wired Baby GenXers Marrieds Baby Baby Elites Boomers Boomers Boomers AOL 28% 24% 31% 25% 35% 28% 25% MSN 8 5 6 7 8 8 11 AT&T 4 5 98 6 1 4 2 Worldnet Earthlink/ 3 1 6 4 4 3 2 Mindspring Other 25 25 25 26 21 24 27 Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, 1,027 Internet users. Margin of error is ±2% for entire sample and ±3% for results based on Internet users.
As for why users chose a particular ISP, there is a similar scatter of reasons given. About one in six (17%) say they chose their ISP because of a promotional offering, one in seven (14%) said they chose their current ISP because they thought the service would be better than that provided by their previous ISP. One in nine (11%) said that the price was attractive to them, and only 4% said it was the only ISP available to them; 15% cited other reasons.
Looking across the groupings of technology users reveals a few interesting variations. The Young Tech Elites seem a bit less inclined to subscribe to AOL than other users (24% versus 28%). This group strikes a clear contrast with their less-wired counterparts in the same age group, the Young Marrieds who have a modest amount of personal information technology. More than one–third (35%) of this latter group use AOL. In an interesting cross current, the other segment that has a heavy orientation toward tech gadgets – Wired Aging Baby Boomers – is somewhat more disposed to AOL than others; 31% of this group uses AOL to connect to the Internet.
Overall, Americans have a positive attitude toward technology but a few feel overwhelmed by information.
Americans are typically very optimistic when thinking about technology, with 5 in 8 (62%) of all Americans saying they generally like computers and technology, and two- thirds (67%) saying they like the abundance of information available today. Those who have the most tech goods and services are the ones who feel least burdened by information and have the most positive attitudes about technology. For the Young Tech Elites, the Older Wired Baby Boomers, and Wired GenXers, optimism about technology
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is very high, with 80% saying they like computers and technology. At the other end of the spectrum, the older less-wired groups – the Unwired Young Baby Boomers and the Low-Tech Elderly – have somewhat pessimistic views of technology and the wealth of information available today. A slight minority of them (48%) expresses a positive attitude about computers and technology.
On the other side of the coin, only one in five Americans (21%) say they feel overloaded by too much information. Very few (10%) of the Young Tech Elites feel this way, while 35% of those in the groups of older women who modestly use information goods and services say this. As for how they see technology affecting their lives, 56% of people in the three groups of elite tech users say that technology gives them more control over their lives. Those who have less technology – the two groups of predominantly older women – are less likely to say technology gives them more control of their lives (33% say this). This cuts two ways. It is likely that technology is giving people the wherewithal to better control their lives; it is also likely that people who have a greater amount of control over their lives are the ones who, for whatever reason, are heavy technology users.
Consumption of Information Goods and Services - 25 - Pew Internet & American Life Project
Methodology
This report is based on the findings of a daily tracking survey on Americans' use of the Internet. The results in this report are based on data from telephone interviews conducted by Princeton Survey Research Associates between October 7 and October 27, 2002, among a sample of 1,677 adults, age 18 and older. For results based on the total sample, one can say with 95% confidence that the error attributable to sampling and other random effects is plus or minus 2 percentage points. For results based Internet users (n=1,027), the margin of sampling error is plus or minus 3 percentage points. In addition to sampling error, question wording and practical difficulties in conducting telephone surveys may introduce some error or bias into the findings of opinion polls.
The sample for this survey is a random digit sample of telephone numbers selected from telephone exchanges in the continental United States. The random digit aspect of the sample is used to avoid “listing” bias and provides representation of both listed and unlisted numbers (including not-yet-listed numbers). The design of the sample achieves this representation by random generation of the last two digits of telephone numbers selected on the basis of their area code, telephone exchange, and bank number.
New sample was released daily and was kept in the field for at least five days. This ensures that complete call procedures were followed for the entire sample. Additionally, the sample was released in replicates to make sure that the telephone numbers called are distributed appropriately across regions of the country. At least 10 attempts were made to complete an interview at every household in the sample. The calls were staggered over times of day and days of the week to maximize the chances of making contact with a potential respondent. Interview refusals were recontacted at least once in order to try again to complete an interview. All interviews completed on any given day were considered to be the final sample for that day.
Non-response in telephone interviews produces some known biases in survey-derived estimates because participation tends to vary for different subgroups of the population, and these subgroups are likely to vary also on questions of substantive interest. In order to compensate for these known biases, the sample data are weighted in analysis. The demographic weighting parameters are derived from a special analysis of the most recently available Census Bureau’s Current Population Survey (March 2001). This analysis produces population parameters for the demographic characteristics of adults age 18 or older, living in households that contain a telephone. These parameters are then compared with the sample characteristics to construct sample weights. The weights are derived using an iterative technique that simultaneously balances the distribution of all weighting parameters.
PSRA calculates a response rate as the product of three individual rates: the contact rate, the cooperation rate, and the completion rate. Of the residential numbers in the sample,
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70.7 percent were contacted by an interviewer and 46.4 percent agreed to participate in the survey. Eighty-eight percent were found eligible for the interview. Furthermore, 91.2 percent of eligible respondents completed the interview. Therefore, the final response rate is 29.9 percent.
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Appendix
This appendix provides detail on monthly spending and overall penetration rates of information goods and services surveyed by the Pew Internet & American Life Project in October 2002. This includes monthly spending data for selected demographic groups, and also data on penetration rates for the six of the seven groups of users identified in the report and by selected demographic groups.13
The table below shows how different demographic groups break down when it comes to average monthly spending on information goods and services, both in total and for specific items. In reading the table, it is important to recognize that the column labeled “Total Spent on Information Goods and Services” is a weighted average. That is, it reflects the total of the six columns to the right, adjusting for the fact that not all people pay for cable, cell phones, Internet, or some of the other items. For individual services listed, the dollar figure represents monthly spending estimates for those people who have the particular service. Thus, the sum of the six columns of specific items significantly exceeds the weighted average.
Picking Apart the Data on Monthly Technology Spending $ per month Total Spent on Tele- Cell Cable/ Premium Internet Online for Each Information Phone Phone Satellite Channels Service content Group Goods and Services (weighted average)
All $122 $57 $57 $51 $23 $24 $21 Men 127 55 64 51 24 25 n/a** Women 118 59 51 50 22 22 n/a Whites 121 55 56 49 22 23 n/a Blacks 131 70 58 59 27 29 n/a Latino 131 63 67 54 35 21 n/a College 143 60 56 53 21 25 n/a Graduates Students 130 67 57 54 24 23 n/a Employed 138 59 61 51 22 24 n/a Urban 121 55 59 53 27 25 n/a Suburban 125 58 55 52 21 24 n/a Rural 116 58 62 45 21 22 n/a Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%. * For cells labeled “n/a” there was not enough respondents to report statistically meaningful numbers.
13 As noted in the body of the report, the “wired senior men” group is only 1% of the sample and therefore too small to draw statistical inferences with much certainty; it is therefore excluded in the table below.
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Several surprises emerge upon looking at the data. First, it may come as a surprise that blacks and Latinos pay, on average, more per month in the selected categories than whites. For blacks, the extra spending is devoted to the telephone, cable TV (including premium channels), and Internet access. It is hard to pinpoint the reasons for this, although looking at “old media” habits, it seems that blacks are more dependent than other segments of the population on electronic means. They are a bit more likely than others to get news from TV on a typical day than others and less likely to read a newspaper. It is also notable that students pay more per month on selected information goods and services; since many may live away from home, long distance telephone calls may be the source of the difference.
As noted in the body of the report, there are considerable spending variations among the groups of technology users identified. The Young Tech Elites spend on average $161 per month on the selected items, while the Older Wired Baby Boomers spend $175 per month. On the other end of the spectrum, the Young Marrieds, with a modest amount of technology, spend $127 per month and the aging baby boomers with relatively little technology spend $124 per month. The table below presents spending for the groups identified in this report, with the monthly total and for each technology. The table is like the one above in that the “total” column is a weighted average, and the figures for specific technologies are only for those users who had the particular item. Not all totals are reported because of the small number of responses in some instances, and online
Spending Patterns for the Groups of Technology Users $ per month Total Spent on Tele- Cell Cable/ Internet for Each Information Phone Phone Satellite Service Group Goods and Services (weighted average) Young Tech $161 $63 $61 $57 $28 Elites Older Wired 175 69 66 53 24 Baby Boomers Wired 169 60 59 56 26 GenXers Young 127 70 63 53 22 Marrieds Low-Tech Older Baby 124 55 59 51 22 Boomers Unwired Young Baby 125 54 55 47 18 Boomers Low-Tech 82 44 37 43 n/a Elderly Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%. * For cells labeled “n/a” there was not enough respondents to report statistically meaningful numbers.
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content and cost of premium TV channels totals by group are not reported for that reason.
We also sought to get at the source of the variations in spending across the groups and used regression analysis to do this. This analysis was performed to see how demographic factors independently influence spending on the sum of the six information goods and services chosen. If, as we know, the Young Tech Elites spend more on average than other people, is it due to something inherent in their classification as a “Young Tech Elites,” or is it because of other factors, such as age, education, or race? In other words, do the Young Tech Elites spend more because of something about them that is independent of their levels of income or education, or other demographic factors?
The results suggest that the most technologically sophisticated in the population – the Young Tech Elites, Wired GenXers, and the Older Wired Baby Boomers – have a preference for spending in the six categories of information services that is independent of other socioeconomic factors. In other words, something about these two groups of technological sophisticates drives them to spend more on information services. We do not know what the “something” is, but we know that this extra spending occurs irrespective of income, education, age, or race. Additionally, several variables have the expected impacts on spending; income has a positive and significant impact on spending, as does being a parent. Age (being over age 55) and being white were associated lower levels of spending; by contrast, being black was associated with higher spending in the six categories. Other classifications of users (e.g., Unwired Young Baby Boomers or Young Marrieds) did not independently impact monthly spending.
Technology Use Among Tech Elites and Non-Tech Elites Group Internet Computer Cable Cell Satellite Premium Pager DVD Personal Digital Phone Dish TV Organizer Video Channels Recorder Young Tech 100% 100% 69% 80% 25% 51% 17% 82% 26% 9% Elites Older Wired 100 98 68 82 27 43 18 67 28 8 Baby Boomers Wired 100 98 66 82 22 45 18 64 25 5 GenXers Young 66 78 54 56 20 40 13 63 8 8 Marrieds Low-Tech Older Baby 51 68 61 60 25 37 12 37 5 8 Boomers Unwired Young Baby 45 41 69 62 16 21 13 47 3 6 Boomers Low-Tech 12 21 68 39 14 18 5 17 3 9 Elderly Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%.
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Technology Use Among Various Demographic Groups % of Each Internet Computer Cable Cell Satellite Premium Pager DVD Personal Digital Video Group Phone Dish TV Organizer Recorder Channels All 59% 69% 62% 62% 21% 35% 13% 47% 11% 7% Men 62 72 64 63 23 37 16 53 13 8 Women 56 66 60 61 20 34 10 42 8 7 Whites 60 69 62 63 21 36 11 46 10 7 Blacks 50 65 62 55 25 34 25 47 11 11 Latino 59 73 56 66 22 30 19 63 11 10 College 83 92 65 77 20 37 16 57 23 8 Graduates Students 80 92 59 67 21 32 18 63 14 12 Employed 71 82 62 71 22 35 17 56 14 7 Urban 65 72 64 61 13 31 18 50 12 8 Suburban 60 70 65 66 21 36 12 49 12 7 Rural 49 62 52 54 33 36 8 40 6 6 Source: Pew Internet & American Life Project survey October 2002 of 1,677 Americans, margin of error is ±2%.
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October 2002 Tracking Survey Topline 11.08.02 October 7 – October 27, 2002 1 Princeton Survey Research Associates for the Pew Internet & American Life Project
Sample: n = 1,677 adults 18 and older Interviewing dates: 10.07.02-10.27.02 Margin of error is plus or minus 2 percentage points for results based on the full sample Margin of error is plus or minus 3 percentage points for results based on Internet users
Q1 Overall, are you satisfied or dissatisfied with the way things are going in this country today?
DON’T KNOW SATISFIED DISSATISFIED /REFUSED Current 40 49 11 September 20021 44 45 10 June 26-July 26, 20022 45 43 11 March/May 20023 52 37 11 January 20024 58 33 9 Dec. 17-23, 20025 61 30 9 Nov. 19-Dec. 16 2001 61 28 11 Oct. 19-Nov. 18 2001 59 32 10 October 2-7 2001 60 31 9 August 20016 44 45 10 February 2001 53 38 10 Fall 20007 51 41 8 July/August 2000 52 39 9 May/June 2000 51 41 8 March/April 2000 50 41 9
1 September 2002 figures based on daily tracking survey conducted September 9-October 6, 2002 [N=2,092]. 2 June 26-July 26, 2002 figures based on Sept. 11th-The Impact Online survey [N=2,501]. 3 March/May 2002 figures based on daily tracking surveys conducted March 1-31, 2002 and May 2-19, 2002. 4 January 2002 figures based on a daily tracking survey conducted January 3-31, 2002. 5 December 17-23, 2001 and November 19-December 16, 2001 results based on total tracking period November 19-December 23, 2001. 6 August 2001 trends based on a daily tracking survey conducted August 13-September 10, 2001 [N=2,247]. 7 Fall 2000 figures based on a daily tracking survey conducted September 15 – December 22, 2000.
PRINCETON SURVEY RESEARCH ASSOCIATES
Q2 Now I have a few questions about whether you spent any time reading or watching the news yesterday. Just thinking about yesterday, did you get a chance to read a 2 daily newspaper, or not?
DON’T KNOW YES NO /REFUSED Current 41 58 * September 2002 39 61 * June 26-July 26, 2002 38 62 * March/May 2002 38 62 * January 2002 41 59 * Dec. 17-23, 2002 39 61 * Nov. 19-Dec. 16 2001 38 62 * Oct. 19-Nov. 18 2001 38 61 1 October 2-7 2001 41 59 0 August 2001 39 61 * February 2001 40 60 * Fall 2000 40 60 * July/August 2000 40 60 * May/June 2000 38 62 * March/April 2000 41 59 *
Q3 Did you watch the news or a news program on television yesterday, or not?
NO, DID YES, WATCHED NOT WATCH TV NEWS TV NEWS DON’T KNOW YESTERDAY YESTERDAY /REFUSED Current 66 33 * September 2002 59 40 1 June 26-July 26, 2002 59 41 * March/May 2002 59 41 1 January 2002 65 35 * Dec. 17-23, 2002 61 38 * Nov. 19-Dec. 16 2001 64 36 * Oct. 19-Nov. 18 2001 65 34 1 October 2-7 2001 65 35 * August 2001 57 42 * February 2001 61 39 * Fall 2000 64 36 * July/August 2000 57 43 * May/June 2000 54 46 * March/April 2000 58 42 *
PRINCETON SURVEY RESEARCH ASSOCIATES
Q5 Do you use a computer at your workplace, at school, at home, or anywhere else on at least an occasional basis?
DON’T KNOW 3 YES NO /REFUSED Current 69 31 * September 2002 68 32 * June 26-July 26, 2002 69 31 * March/May 2002 69 31 * January 2002 67 33 0 Dec. 17-23, 2002 64 36 * Nov. 19-Dec. 16 2001 62 38 * Oct. 19-Nov. 18 2001 66 34 * Oct. 8-18 2001 59 41 * October 2-7 2001 64 36 0 Sept 20-Oct 1 2001 59 41 * Sept 12-19 2001 64 36 * August 2001 66 34 0 February 2001 65 35 0 Fall 2000 65 35 * July/August 2000 63 37 * May/June 2000 61 39 * March/April 2000 63 37 *
Q6 Do you ever go online to access the Internet or World Wide Web or to send and receive email?
DOES NOT GO DON’T KNOW GOES ONLINE ONLINE /REFUSED Current 59 41 0 September 2002 61 39 0 June 26-July 26, 2002 59 41 0 March/May 2002 58 42 0 January 2002 61 39 0 Dec. 17-23, 2002 58 42 0 Nov. 19-Dec. 16 2001 58 42 0 Oct. 19-Nov. 18 2001 58 42 0 Oct. 8-18 2001 55 45 0 October 2-7 2001 55 45 0 Sept 20-Oct 1 2001 51 49 0 Sept 12-19 2001 55 45 0 August 2001 59 41 0 February 2001 53 47 * Fall 2000 53 47 0 July/August 2000 50 50 * May/June 2000 47 53 0 March/April 2000 49 51 *
PRINCETON SURVEY RESEARCH ASSOCIATES
Q6c Does anyone in your household go online from home to access the Internet or World Wide Web or to send and receive e-mail? 4 Based on Non-Internet Users [N=650] SEPTEMBER JUNE 26-JULY 26 MARCH/MAY CURRENT 2002 2002 2002 % 22 Yes 22 21 20 77 No 76 77 79 2 Don’t know/Refused 2 1 1
Q7 Did you happen to go online or check your email yesterday?
Based on Internet users [N=1,027] YES, WENT NO, DID NOT ONLINE GO ONLINE DON’T KNOW YESTERDAY YESTERDAY /REFUSED Current 57 43 0 September 2002 58 42 * June 26-July 26, 2002 53 47 * March/May 2002 57 43 * January 2002 59 41 * Dec. 17-23, 2002 58 42 * Nov. 19-Dec. 16 2001 60 40 * Oct. 19-Nov. 18 2001 61 39 * Oct. 8-18 2001 51 49 1 October 2-7 2001 56 43 1 Sept 20-Oct 1 2001 57 42 1 Sept 12-19 2001 51 49 * August 2001 56 44 * February 2001 59 41 * Fall 2000 56 44 * July/August 2000 50 50 * May/June 2000 52 48 * April 2000 55 45 0 March 2000 60 40 *
PRINCETON SURVEY RESEARCH ASSOCIATES
Q8/9 When you went online yesterday, did you go online from home? Did you go online from work yesterday?
5 Based on users who went online yesterday [N=910] ONLINE ONLINE YESTERDAY BOTH AT YESTERDAY AT AT WORK HOME AND DON’T KNOW HOME ONLY ONLY AT WORK /REFUSED Current 53 21 23 3 September 2002 60 20 19 2 June 26-July 26, 2002 59 18 20 2 March/May 2002 56 18 22 3 January 2002 61 16 20 2 Dec. 17-23, 2002 56 20 22 2 Nov. 19-Dec. 16 2001 57 19 20 4 Oct. 19-Nov. 18 2001 58 20 20 2 Oct. 8-18 2001 51 23 23 3 October 2-7 2001 55 20 23 2 Sept 20-Oct 1 2001 60 21 15 5 Sept 12-19 2001 54 22 20 3 August 2001 57 23 18 3 February 2001 59 17 21 3 Fall 2000 55 20 21 3 July/August 2000 61 18 19 2 May/June 2000 58 22 18 2 April 2000 55 21 21 3 March 2000 56 21 20 3
PRINCETON SURVEY RESEARCH ASSOCIATES
Q12 About how many years have you had access to the Internet? (Note Question Wording)8 Q12.1 About how many months is that? 6
Based on Internet users [N=1,027] WITHIN THE A MORE THAN LAST SIX YEAR TWO OR THREE THREE YEARS ------DON’T KNOW MONTHS AGO YEARS AGO AGO FOUR YEARS FIVE YEARS SIX OR MORE /REFUSED Current 3 6 22 68 12 18 38 1 September 2002 2 5 23 68 13 18 38 1 June 26-July 26, 2002 2 6 24 65 13 19 33 2 March/May 2002 7 10 31 52 10 15 25 * January 2002 8 13 33 46 8 13 21 * Dec. 17-23, 2002 7 12 36 45 9 13 20 * Nov. 19-Dec. 16 2001 6 13 33 48 11 15 20 * Oct. 19-Nov. 18 2001 6 14 32 48 13 13 19 * Oct. 8-18 2001 6 13 35 45 11 14 18 1 October 2-7 2001 4 18 30 48 13 13 21 * Sept 20-Oct 1 2001 8 15 32 44 13 16 14 0 Sept 12-19 2001 7 14 34 45 11 12 19 1 August 2001 9 16 33 43 10 13 17 * February 2001 11 16 37 34 10 11 13 2 Fall 2000 12 19 34 36 n/a n/a n/a * July/August 2000 13 21 33 33 n/a n/a n/a * May/June 2000 15 19 33 33 n/a n/a n/a * April 2000 17 20 31 32 n/a n/a n/a * March 2000 18 21 33 28 n/a n/a n/a * October 1999 15 22 32 31 n/a n/a n/a 0 July 1999 17 23 32 28 n/a n/a n/a * November 1998 20 26 34 19 n/a n/a n/a 1 October 1996 26 38 24 12 n/a n/a n/a *
8 Question wording for all trends in Q12/Q12.0 on or before March/May 2002 as follows: “When did you first start going online: was it within the last six months, a year ago, two or three years ago, or more than three years ago?”; “About how many years have you had Internet access?”
PRINCETON SURVEY RESEARCH ASSOCIATES
Q13 Do you ever go online from home? Q8 When you went online yesterday, did you go online from home?
Based on Internet users [N=1,027] 7 TOTAL, GO ------DON'T GO ONLINE FROM WENT GO ONLINE ONLINE DON’T KNOW HOME ONLINE FROM HOME FROM HOME FROM HOME (NOT /REFUSED YESTERDAY YESTERDAY) Current 88 43 45 12 0 September 2002 87 45 42 13 0 June 26-July 26, 2002 86 42 44 14 0 March/May 2002 87 45 42 13 0 January 2002 88 48 40 12 * Dec. 17-23, 2002 88 45 43 12 0 Nov. 19-Dec. 16 2001 88 46 42 12 * Oct. 19-Nov. 18 2001 87 47 40 13 * Oct. 8-18 2001 87 38 50 13 0 October 2-7 2001 89 43 45 11 0 Sept 20-Oct 1 2001 87 42 44 13 * Sept 12-19 2001 86 38 49 14 * August 2001 84 41 42 16 0 February 2001 85 47 38 15 * Fall 2000 83 43 41 17 * July/August 2000 84 39 45 16 0 May/June 2000 83 39 44 17 0 April 2000 83 42 41 17 0 March 2000 81 46 35 19 0
PRINCETON SURVEY RESEARCH ASSOCIATES
Q14 In general, how often do you go online from home — several times a day, about once a day, 3-5 days a week, 1-2 days a week, once every few weeks, or less often?
8 Based on users who go online from home [N=912] DON’T SEVERAL ABOUT 3-5 DAYS 1-2 DAYS EVERY FEW LESS KNOW TIMES A DAY ONCE A DAY A WEEK A WEEK WEEKS OFTEN /REFUSED Current 26 28 22 16 6 3 * September 2002 27 26 20 17 5 4 * June 26-July 26, 2002 23 24 22 19 8 4 * March/May 2002 24 25 21 19 6 3 1 January 2002 24 26 21 20 5 3 * Dec. 17-23, 2002 23 29 20 17 7 3 1 Nov. 19-Dec. 16 2001 24 28 21 16 6 4 1 Oct. 19-Nov. 18 2001 24 30 21 15 6 3 1 Oct. 8-18 2001 25 26 23 18 4 3 1 October 2-7 2001 26 26 23 18 4 3 0 Sept 20-Oct 1 2001 24 28 20 19 5 3 * Sept 12-19 2001 21 27 23 20 6 3 * August 2001 21 28 23 18 6 4 * February 2001 25 29 20 17 5 4 1 Fall 2000 22 29 22 18 6 3 * July/August 2000 23 28 21 22 4 2 * May/June 2000 23 30 22 16 6 3 * April 2000 24 30 20 18 5 3 * March 2000 23 29 24 16 5 2 1
PRINCETON SURVEY RESEARCH ASSOCIATES
Q15 Do you ever go online from work? Q9 Did you go online from work yesterday?
Based on Internet users [N=1,027] 9 TOTAL, GO ------DON'T GO ONLINE FROM WENT GO ONLINE ONLINE DON’T KNOW WORK ONLINE FROM WORK FROM WORK FROM WORK (NOT /REFUSED YESTERDAY YESTERDAY) Current 50 25 25 50 * September 2002 49 22 27 51 0 June 26-July 26, 2002 50 20 30 50 * March/May 2002 49 23 26 51 * January 2002 47 22 26 53 * Dec. 17-23, 2002 50 24 26 50 * Nov. 19-Dec. 16 2001 52 23 29 48 0 Oct. 19-Nov. 18 2001 49 24 25 51 * Oct. 8-18 2001 49 23 26 51 * October 2-7 2001 49 24 25 51 0 Sept 20-Oct 1 2001 50 20 30 50 * Sept 12-19 2001 50 22 29 49 1 August 2001 49 23 27 50 * February 2001 49 22 27 50 1 Fall 2000 50 23 26 50 * July/August 2000 45 18 27 55 0 May/June 2000 50 21 29 50 * April 2000 51 24 27 49 * March 2000 48 24 24 52 0
PRINCETON SURVEY RESEARCH ASSOCIATES
Q16 In general, how often do you go online from work — several times a day, about once a day, 3-5 days a week, 1-2 days a week, once every few weeks, or less often?
10 Based on users who go online from work [N=534] DON’T SEVERAL ABOUT 3-5 DAYS 1-2 DAYS EVERY FEW LESS KNOW TIMES A DAY ONCE A DAY A WEEK A WEEK WEEKS OFTEN /REFUSED Current 51 21 10 13 3 3 1 September 2002 46 22 13 12 3 3 * June 26-July 26, 2002 49 23 9 10 6 3 * March/May 2002 47 22 11 12 5 3 * January 2002 48 21 11 11 5 4 1 Dec. 17-23, 2002 48 21 11 11 6 2 1 Nov. 19-Dec. 16 2001 46 23 10 12 4 3 1 Oct. 19-Nov. 18 2001 50 18 11 11 6 4 1 Oct. 8-18 2001 48 26 9 12 2 3 * October 2-7 2001 50 25 6 10 5 2 1 Sept 20-Oct 1 2001 44 27 9 13 4 4 * Sept 12-19 2001 41 22 10 17 5 5 1 August 2001 44 24 11 11 4 5 1 February 2001 51 19 12 11 3 3 * Fall 2000 45 23 11 12 4 4 1 July/August 2000 43 24 12 12 5 3 1 May/June 2000 41 22 14 12 5 5 1 April 2000 44 25 11 11 5 3 1 March 2000 40 26 13 11 5 4 1
PRINCETON SURVEY RESEARCH ASSOCIATES
Q16.1 Is there anyplace other than your home or workplace where you go online? Q9.2 Did you go online yesterday from someplace other than your home or workplace?
11 Based on Internet users [N=1,027] SEPTEMBER JUNE 26-JULY 26 CURRENT 2002 2002 % 25 Total go online from other than 26 23 home or work 4 Yesterday 4 2 21 Not yesterday 22 21 74 No, did not 74 77 * Don’t know/Refused * 0
Q16.2 Where do you go online from other than your home or workplace? Q9.3 And where was that (that you went online other than your home or workplace yesterday)?
Based on those who go online from somewhere other than home or work ever [N=253] SEPTEMBER JUNE 26-JULY 26 CURRENT 2002 2002 % 30 At school 27 22 29 At a friend’s or neighbor’s house 27 31 24 From a library 27 28 7 At relative’s house 9 8 3 While traveling 5 5 0 From a hotel 0 0 0 At an Internet café 0 0 0 By using a cell phone or other device 0 0 0 At a community center 0 0 0 At a church, temple, mosque or other house of 0 0 worship or religious organization 10 Other/Somewhere else 10 11 0 None of the above 0 0 * Don’t know/Refused 0 *
PRINCETON SURVEY RESEARCH ASSOCIATES
Q16.3 In general, how often do you go online from (INSERT) several times a day, about once a day, 3-5 days a week, 1-2 days a week, once every few weeks, or less often? Q9.4 How often did you go online yesterday from (INSERT) several times a day, about 12 once a day, 3-5 days a week, 1-2 days a week, once every few weeks, or less often?
Based on those who go online from someplace other than home or work ever [N=253] SEPTEMBER JUNE 26-JULY 26 CURRENT 2002 2002 % 4 Several times a day 5 3 10 About once a day 9 8 9 3-5 days a week 11 8 19 1-2 days a week 16 17 23 Every few weeks 20 21 12 Every few months 18 17 11 Less often 6 8 10 Don’t know/Refused 15 16
PRINCETON SURVEY RESEARCH ASSOCIATES
WEB1 Please tell me if you ever do any of the following when you go online. Do you ever… Did you happen to do this yesterday, or not? 13 Based on Internet users [N=1,027] TOTAL HAVE EVER DONE DID HAVE NOT DON’T KNOW/ THIS YESTERDAY DONE THIS REFUSED Send or read e-mail Current 93 50 7 0 Sept 2002 93 51 7 * June 26-July 26, 2002 93 46 7 * March/May 2002 93 50 7 * Jan 2002 95 52 5 0 Dec 17-23, 2001 95 54 5 * Nov 19-Dec 16, 2001 95 53 5 * Oct 19-Nov 18, 2001 94 52 6 * Oct 8-18 , 2001 95 44 5 * Oct 2-7, 2001 92 46 7 * Sept 20-Oct 1, 2001 94 49 6 0 Sept 12-19, 2001 93 42 7 * Aug 2001 93 51 7 * Feb 2001 93 53 7 * Fall 2000 92 49 8 * July-August 2000 93 43 7 * May-June 2000 92 44 8 * April 2000 92 50 8 0 March 2000 91 52 9 0 Get news online Current 68 26 32 * Sept 2002 70 25 30 * June 26-July 26, 2002 66 22 34 * March/May 2002 66 24 34 * Jan 2002 71 26 29 * Dec 17-23, 2001 70 26 29 * Nov 19-Dec 16, 2001 74 30 26 * Oct 19-Nov 18, 2001 71 29 29 * Oct 8- 18, 2001 67 23 33 0 Oct 2-7, 2001 71 23 28 * Sept 20-Oct 1, 2001 71 26 29 * Sept 12-19, 2001 70 27 30 * Aug 2001 64 22 35 * Feb 2001 66 25 34 * Fall 2000 61 22 39 * July-August 2000 59 19 41 * May-June 2000 60 18 40 * April 2000 60 22 40 * March 2000 60 22 40 *
PRINCETON SURVEY RESEARCH ASSOCIATES
WEB1 continued…
TOTAL HAVE EVER DONE DID HAVE NOT DON’T KNOW/ THIS YESTERDAY DONE THIS REFUSED 14 Not including email, do any type of work or research online for your job Current 51 17 48 * Sept 2002 47 15 53 * Jan 2002 49 16 51 * Dec 17-23, 2001 54 20 46 * Nov 19-Dec 16, 2001 53 18 47 0 Oct 19-Nov 18, 2001 48 17 51 * Oct 8- 18, 2001 50 15 50 * Oct 2-7, 2001 56 16 44 0 Sept 20-Oct 1, 2001 52 15 48 1 Sept 12-19, 2001 49 13 51 * Aug 2001 51 17 49 * Feb 2001 51 18 48 * Fall 2000 51 17 49 * July-August 2000 47 13 53 * May-June 2000 50 14 50 * April 2000 51 16 49 * March 2000 49 16 51 0 Look for news or information about politics or the campaign Current 45 11 55 * Sept 2002 42 9 57 * June 26-July 26, 2002 43 9 57 0 Fall 2000 43 16 57 * July-August 2000 30 8 70 * May-June 2000 34 7 66 * April 2000 34 7 66 * March 2000 35 10 65 *
PRINCETON SURVEY RESEARCH ASSOCIATES
WEB1 continued…
TOTAL HAVE EVER DONE DID HAVE NOT DON’T KNOW/ THIS YESTERDAY DONE THIS REFUSED 15 BUY a product online, such as books, music, toys or clothing Current 61 3 39 0 Sept 2002 62 4 38 * March/May 2002 55 3 45 0 Jan 2002 57 4 43 0 Dec 17-23, 2001 56 4 44 * Nov 19-Dec 16, 2001 59 6 41 * Oct 19-Nov 18, 2001 57 4 43 0 Oct 8-18 , 2001 55 5 44 * Oct 2-7, 2001 57 2 43 0 Sept 20-Oct 1, 2001 50 2 50 * Sept 12-19, 2001 55 2 45 * Aug 2001 55 4 45 0 Feb 2001 51 3 49 * Fall 2000 49 4 51 * July-August 2000 48 3 52 0 May-June 2000 46 4 54 * April 2000 47 3 53 * March 2000 48 4 52 * Do any online banking Current 30 7 70 * Sept 2002 32 10 68 * June 26-July 26, 2002 32 8 68 * March/May 2002 30 9 70 * May-June 2000 18 4 82 * Create content for the Internet, such as helping build a web site, creating an online diary, or posting your thoughts on an online bulletin board or other online community9 Current 19 4 80 * Sept 2002 18 5 81 * June 26-July 26, 2002 13 3 87 * Jan 2002 20 4 79 * Take part in an online group that you consider yourself a member of Current 16 6 83 * Sept 2002 16 6 84 * March 2000 17 5 83 *
9 Wording for this item in trends as follows: “Create content for the Internet, such as helping build a web site, creating an online diary, or posting your thoughts on an online bulletin board or other online community”.
PRINCETON SURVEY RESEARCH ASSOCIATES
WEB1 continued…
HAVE DONE THIS DON’T 16 EVER HAVE DID NO, HAVE KNOW/ DONE THIS YESTERDAY NOT DONE REFUSED Make a phone call online, using the Internet Current 8 1 92 * Sept 12-17, 2001 [n=996] 12 1 87 * Aug 2001 12 1 88 * April 2000 10 1 90 * Download music files onto your computer so you can play them at any time you want Current 32 5 68 * Sept 12-19, 2001 26 3 73 * Aug 2001 26 3 73 * Feb 2001 29 6 71 * Fall 2000 24 4 76 * July-August 2000 22 3 78 * Visit an adult web site Current 13 2 86 * Sept 12-19, 2001 14 1 85 1 Aug 2001 15 1 85 * Watch a video clip or listen to an audio clip Current 53 10 47 * April 2000 50 7 50 * March 2000 47 7 53 *
PRINCETON SURVEY RESEARCH ASSOCIATES
Q17 Some people say they feel overloaded with information these days, considering all the TV news shows, magazines, newspapers, and computer information services. Others say they like having so much information to choose from. How about you… 17 do you feel overloaded, or do you like having so much information available?
CURRENT CURRENT INTERNET CURRENT APRIL 200210 TOTAL USERS NON-USERS TOTAL % 21 16 29 Overloaded 26 67 76 55 Like it 66 7 6 10 Other (VOL) 6 4 1 7 Don’t know/Refused 2
Q18 How do you feel about computers and technology… do you like them, dislike them, or do you have mixed feelings about them?
CURRENT CURRENT INTERNET CURRENT OCT 199811 TOTAL USERS NON-USERS TOTAL % 62 74 45 Like 61 5 1 9 Dislike 6 27 23 32 Mixed feelings 26 7 1 15 Don’t know/Refused 7
Q19 Do you think that computers and technology give people more control over their life, less control over their life, or don’t you think it makes any difference?
CURRENT CURRENT INTERNET CURRENT JAN 199412 TOTAL USERS NON-USERS TOTAL % 41 47 34 More 42 14 10 20 Less 17 35 38 32 No difference 34 9 5 14 Don’t know/Refused 7
10 April 2002 trends based on the Pew Research Center for People and the Press Biennial Media Consumption Survey conducted by Princeton Survey Research Associates. [N=3,002] adults 18 years or older. Interview dates: April 26-May 12, 2002. April 2002 trends in Q17 based on Form B Respondents only [N=1,451]. 11 October 1998 trends based on the Pew Research Center for People and the Press 1998 Technology Survey conducted by Princeton Survey Research Associates. [N=2,000] adults 18 years or older. Interview dates: October 26-December 1, 1998. 12 January 1994 trends based on the Pew Research Center for People and the Press Technology in the Home Survey conducted by Princeton Survey Research Associates. [N=3,667] adults 18 years or older. Interview dates: January 4-February 17, 1994.
PRINCETON SURVEY RESEARCH ASSOCIATES
Q20 (Now, we’d like to ask you a few questions about electronic media and communications services that you may subscribe to…) Do you happen to have 18 (INSERT), or not? How about…?
YES NO DON’T KNOW/ REFUSED a A cell phone Current 62 38 * April 2002 64 36 * b A pager Current 13 87 * April 2002 16 84 * c A DVD player Current 47 52 * April 2002 44 56 * d A Palm, Handspring, Blackberry, Pocket PC or similar product13 Current 11 89 1 April 2002 11 87 2 e A Digital TV Recorder such as Tivo or Ultimate TV14 Current 7 92 1 April 2002 3 96 1
LINES How many telephone lines or numbers does your household have, including those that you receive calls on, as well as those you use for computers or fax machines?
CURRENT SEPT 2002 % 66 1 61 24 2 25 6 3 8 2 4 3 1 5 or more 2 1 Don’t know/Refused 1
13 Wording for this item in April 2002 trend as follows: “A Palm Pilot or other similar product”. 14 Wording for this item in April 2002 trend as follows: “A smart TV product like Tivo or UltimateTV”.
PRINCETON SURVEY RESEARCH ASSOCIATES
LINES2 Excluding your cell phone, to the nearest dollar, how much do you pay per month in total for local telephone service and long distance for your home?
19 CURRENT % 7 $0-20 31 $21-40 23 $41-60 9 $61-80 6 $81-100 6 Over $100 19 Don’t know/Refused
Q21 Do you think one local telephone company is better than another, or do you think they are all pretty much the same?
CURRENT CURRENT INTERNET CURRENT TOTAL USERS NON-USERS % 23 22 23 One is better 64 66 61 Same 13 12 16 Don’t know/Refused
Q22 Do you pay your cell phone bill, or does someone else, such as your employer, pay for it?
Based on cell phone users [N=1,061] CURRENT % 83 Respondent pays 17 Someone else pays 1 Don’t know/Refused
Q23 To the nearest dollar, about how much is your monthly cell phone bill?
Based on cell phone users [N=1,061] CURRENT % 11 $0-20 33 $21-40 21 $41-60 10 $61-80 6 $81-100 6 Over $100 13 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
Q24 Is the cost of long distance calls included in your monthly cell phone bill, or do you have to pay extra for long distance calls on your cell phone?
Based on cell phone users [N=1,061] 20 CURRENT % 74 Cost included in monthly fee 18 Pay extra 9 Don’t know/Refused
Q25 Because you have a cell phone, have you canceled a home telephone line or have you not done so?
Based on cell phone users [N=1,061] CURRENT % 3 Yes, canceled 96 No, not canceled 1 Don’t know/Refused
Q26 How seriously have you considered canceling a home telephone line since getting a cell phone: very seriously, somewhat seriously, or not seriously at all?
Based on cell phone users who have not canceled a home phone line [N=1,029] CURRENT % 7 Very seriously 14 Somewhat seriously 76 Not seriously at all 2 Don’t know/Refused
Q27 How often do you use your cell phone to make long distance calls when the costs are covered by the monthly cell phone service plan – rather than pay per-call charges on your home telephone line… Would you say you do this always, most of the time, some of the time, or never?
Based on cell phone users [N=1,061] CURRENT % 22 Always 19 Most of the time 32 Some of the time 25 Never 3 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
Q28 Do you currently live in an area where you could get cable television if you wanted it?
CURRENT APRIL 2002 21 % 89 Yes 92 10 No 8 1 Don’t know/Refused *
Q29 Do you currently subscribe to cable television?
Based on those who have cable TV available [N=1,494] CURRENT APRIL 2002 % 69 Yes 72 30 No 28 * Don’t know/Refused 0
Q30 Do you think one cable company is better than another, or do you think they are all pretty much the same?
CURRENT % 17 One is better 57 Same 26 Don’t know/Refused
Q31 Do you currently subscribe to a satellite television service such as DirecTV or the Dish Network?
CURRENT APRIL 2002 % 21 Yes 14 77 No 86 1 Don’t know/Refused *
Q32 To the nearest dollar, about how much do you pay per month for cable or satellite TV services?
Based on those with satellite or cable TV [N=1,306] CURRENT % 6 $0-20 35 $21-40 27 $41-60 11 $61-80 7 $81-100 2 Over $100 11 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
Q33 Do you currently subscribe to premium television channels such as HBO or Showtime?
Based on those with satellite or cable TV [N=1,306] 22 CURRENT % 35 Yes 65 No * Don’t know/Refused
Q34 To the nearest dollar, about how much do you pay per month JUST for the premium TV channels?
Based on those who subscribe to premium TV channels [N=451] CURRENT % 16 $0-10 20 $11-20 9 $21-30 13 Over $30 41 Don’t know/Refused
COMPUTERS How many computers are in your household, including desktop computers as well as laptops?
CURRENT % 28 0 60 1 to 2 9 3 to 4 1 5 to 6 * 7 or more 1 Don’t know/Refused
NETWORK Do you happen to have a computer network that links your computers at home together, whether through network cable or a wireless network?
Based on those who have more than one computer at home [N=492] CURRENT % 29 Yes 66 No 4 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
PROV Who is your primary Internet Service Provider at home?
Based on Internet users [N=1,027] 23 CURRENT % 28 AOL 8 MSN 4 AT&T Worldnet 3 Bell South/Pacific Bell 3 Earthlink/Mindspring 3 Road Runner 2 Comcast 2 Cox 2 CompuServe 1 AOL Time Warner 1 Juno Web 1 Prodigy 1 Verizon (East and West) 1 Charter 1 Adelphia * Cablevision * Media One * Ameritech 0 WorldCom 25 Other 2 None/Not connected 11 Don’t know/Refused
PROV.1 Why did you pick that provider?
Based on users who have a primary ISP at home [N=895] CURRENT % 17 Got a good deal or promotional price 14 Better service or connection 13 Lower cost 11 Local Company/Only one available 5 Free 4 Wanted cable/DSL service 3 Heard it was good 3 Came with computer 3 Easy to use/Like it 2 Convenience/One bill 2 High speed/fast 1 We always had it * Spam-blocking service 15 Other 8 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
Q35 Since you first got Internet access at home, have you ever changed Internet service providers?
Based on users who go online at home [N=912] 24 CURRENT % 40 Yes 59 No 1 Don’t know/Refused
Q36 How many times would you say you have changed your Internet service provider since first getting Internet access in your home?
Based on Internet users who changed ISPs [N=371] CURRENT % 41 1 23 2 20 3 13 4-9 2 10 or more 1 Don’t know/Refused
Q37 Do you think one Internet service provider is better than another, or do you think they are all pretty much the same?
CURRENT CURRENT INTERNET CURRENT TOTAL USERS NON-USERS % 34 48 14 One is better 40 39 40 Same 26 13 46 Don’t know/Refused
Q38 If you had a choice, would you prefer to get Internet service from a telephone company, cable company, or another Internet service provider?
CURRENT CURRENT INTERNET CURRENT TOTAL USERS NON-USERS % 17 18 15 Telephone company 21 26 12 Cable company 21 25 14 Other Internet service provider 42 31 58 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
Q39 Thinking about when you log on at home to the World Wide Web… Is the “homepage” that appears when you start your Web browser the original one provided by your ISP or the computer maker? 25 Based on users who go online at home [N=912] CURRENT % 57 Yes 33 No 11 Don’t know/Refused
Q40 Have you ever changed the “homepage” that appears after you first start your Web browser?
Based on users who go online at home [N=912] CURRENT % 42 Yes 55 No 3 Don’t know/Refused
Q41 Do you know how to change the “homepage” that appears after you first start on your Web browser?
Based on users who go online at home and have not changed homepage [N=522] CURRENT % 40 Yes 57 No 2 Don’t know/Refused
COST To the nearest dollar, about how much do you pay each month for Internet access at home?
Based on users who go online at home [N=912] CURRENT % 40 $0-20 37 $21-40 8 $41-60 * $61-80 * Over $80 14 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
Q42 Would you say that the Internet has increased, decreased, or not affected the number of telephone calls you make per month from home?
Based on Internet users [N=1,027] 26 CURRENT % 9 Increased 19 Decreased 69 Not affected 3 Don’t know/Refused
Q43 Has the change in telephone calling been mainly local telephone calls or long- distance telephone calls?
Based on users who think Internet has affected calls [N=293] CURRENT % 41 Local 47 Long-distance 11 Both 1 Don’t know/Refused
Q44 Do you pay your bill for internet access in conjunction with another service, such as your cable bill or your telephone bill?
Based on Internet users [N=1,027] CURRENT % 29 Yes 66 No 5 Don’t know/Refused
Q45 In addition to the other ways you go online, do you access the Internet using a wireless device, such as a Palm, Blackberry, cell phone, or other handheld device?
Based on Internet users and Wireless device users [N=791] CURRENT % 8 Yes 92 No 1 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
Q46 Have you ever paid for any online content, such as for online newsmagazines, online music, or online videos?
Based on Internet users [N=1,027] 27 CURRENT % 8 Yes 92 No * Don’t know/Refused
Q47 In a typical month, how much do you pay (to the nearest dollar) for online content?
Based on those who pay for online content [N=83] CURRENT % 65 $0-20 11 $21-40 4 $41-60 1 $61-80 2 Over $80 16 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
Q48 Now a few questions about how difficult it would be, if at all, for you to give up some things in your life. If you do not use or have the item, just tell me. How hard would it be for you to give up (INSERT) … very hard, somewhat, not too, or not at 28 all?
VERY SOMEWHAT NOT TOO NOT AT ALL DO NOT USE/ DON’T KNOW/ HARD HARD HARD HARD DO NOT HAVE (VOL) REFUSED a Your telephone Current 63 18 8 10 * 2 March/May 2002 60 21 7 11 * 1 b Your television Current 47 25 11 15 1 1 March/May 2002 38 31 13 17 1 * c Cable TV Current 36 29 12 21 * 1 Based on those with Cable TV [n=1,050] d Your cell phone Current 38 27 12 21 1 * Based on cell phone users [n=1,061] e Your favorite newspaper Current 17 20 16 33 12 2 March/May 2002 16 24 16 30 14 1 f Your favorite magazine Current 11 17 16 41 13 2 March/May 2002 10 19 19 34 16 1 g Your computer Current 39 28 10 21 2 1 Based on those with home computer [n=1,217] h Your PDA, handheld computer or wireless email device Current 23 20 23 29 5 * Based on wireless device users [n=192] i The Internet Current 38 30 12 19 1 * Based on Internet users [n=1,027] March/May 2002 31 32 16 19 2 * j Email Current 35 27 12 24 2 * Based on Internet users [n=1,027] March/May 2002 32 28 15 22 2 *
PRINCETON SURVEY RESEARCH ASSOCIATES
Q49 Do you currently live in an area where you can subscribe to high-speed Internet service if you want to?
CURRENT 29 % 72 Yes 11 No 17 Don’t know/Refused
MODEM Does the modem you use at home connect through a standard telephone line, or do you also have some other type of connection?
Based on users who go online at home [N=912] CURRENT % 73 Standard telephone line 24 High-speed 6 DSL-enabled phone line 16 Cable modem 1 Wireless connection (either land-based or satellite) * T-1 or fiber optic connection 1 Other 3 Don’t know/Refused
BBD Would you like to have a faster, “broadband” connection, or isn’t that something you’re interested in?
Based on Non-Broadband users [N=661] CURRENT % 38 Yes 57 No 5 Don’t know/Refused
Q50 When you began getting high-speed Internet service, did you cancel a telephone line in your household or did you not do that?
Based on Home Broadband users [N=225] CURRENT % 16 Yes, canceled 83 No, did not * Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
Q51 Did you switch Internet service providers to begin subscribing to high-speed Internet service at home?
Based on Home Broadband users [N=225] 30 CURRENT % 61 Yes 38 No 1 Don’t know/Refused
Q52 Many people value high-speed Internet at home because of the convenience of faster connection speeds. Others value it because the Internet connection is “always on”. Which would you say matters more to you with respect to your home broadband connection… the connection speed or “always-on” access?
Based on Home Broadband users [N=225] CURRENT % 77 Connection speed 17 Always-on 4 Both about the same 1 Neither/Something else 1 Don’t know/Refused
PRINCETON SURVEY RESEARCH ASSOCIATES
ART01 Do you study, practice, or do any of the following activities?
YES NO DON’T KNOW REFUSED 31 a Drawing or painting Current 21 78 * * Sept 2002 20 80 0 * b Creative writing Current 20 80 * * Sept 2002 20 80 * * c Music Current 27 72 * 0 Sept 2002 25 75 * * d Acting Current 6 94 * * Sept 2002 5 94 * * e Dancing Current 19 81 * * Sept 2002 19 81 * * f Filmmaking Current 5 94 * * Sept 2002 5 94 * * g Other type of artistic activity I haven’t mentioned (SPECIFY) Current 21 78 * * Sept 2002 25 74 * *
ART02 Thinking of all the kinds of artistic activities I just mentioned, do you consider yourself an artist?
Based on those who do any kind of art [N=991] CURRENT SEPT 2002 % 29 Yes 29 70 No 71 1 Don’t know 1 * Refused 0
ART03 Do you now get any of your income from being an artist?
Based on those who consider themselves artists [N=293] CURRENT SEPT 2002 % 29 Yes 32 71 No 67 0 Don’t know 1 0 Refused *
PRINCETON SURVEY RESEARCH ASSOCIATES
Methodology
32 This report is based on the findings of a daily tracking survey on Americans' use of the Internet. The results in this report are based on data from telephone interviews conducted by Princeton Survey Research Associates between October 7 and October 27, 2002, among a sample of 1,677 adults, 18 and older. For results based on the total sample, one can say with 95% confidence that the error attributable to sampling and other random effects is plus or minus 2 percentage points. For results based Internet users (n=1,027), the margin of sampling error is plus or minus 3 percentage points. In addition to sampling error, question wording and practical difficulties in conducting telephone surveys may introduce some error or bias into the findings of opinion polls.
The sample for this survey is a random digit sample of telephone numbers selected from telephone exchanges in the continental United States. The random digit aspect of the sample is used to avoid “listing” bias and provides representation of both listed and unlisted numbers (including not-yet-listed numbers). The design of the sample achieves this representation by random generation of the last two digits of telephone numbers selected on the basis of their area code, telephone exchange, and bank number.
New sample was released daily and was kept in the field for at least five days. This ensures that complete call procedures were followed for the entire sample. Additionally, the sample was released in replicates to make sure that the telephone numbers called are distributed appropriately across regions of the country. At least 10 attempts were made to complete an interview at every household in the sample. The calls were staggered over times of day and days of the week to maximize the chances of making contact with a potential respondent. Interview refusals were recontacted at least once in order to try again to complete an interview. All interviews completed on any given day were considered to be the final sample for that day.
Non-response in telephone interviews produces some known biases in survey- derived estimates because participation tends to vary for different subgroups of the population, and these subgroups are likely to vary also on questions of substantive interest. In order to compensate for these known biases, the sample data are weighted in analysis. The demographic weighting parameters are derived from a special analysis of the most recently available Census Bureau’s Current Population Survey (March 2001). This analysis produces population parameters for the demographic characteristics of adults age 18 or older, living in households that contain a telephone. These parameters are then compared with the sample characteristics to construct sample weights. The weights are derived using an iterative technique that simultaneously balances the distribution of all weighting parameters.
PRINCETON SURVEY RESEARCH ASSOCIATES
Following is the full disposition of all sampled telephone numbers:
Table 2: Sample Disposition 33 Total Numbers dialed 10004
Business 786 Computer/Fax 474 Other Not-Working 1423 Additional projected NW 953 Working numbers 6368 63.7%
No Answer 273 Busy 45 Answering Machine 1130 Callbacks 323 Other Non-Contacts 97 Contacted numbers 4500 70.7%
Initial Refusals 1875 Second Refusals 538 Cooperating numbers 2087 46.4%
No Adult in HH 30 Language Barrier 218 Eligible numbers 1839 88.1%
Interrupted 162 Completes 1677 91.2%
Response Rate 29.9%
PSRA calculates a response rate as the product of three individual rates: the contact rate, the cooperation rate, and the completion rate. Of the residential numbers in the sample, 70.7 percent were contacted by an interviewer and 46.4 percent agreed to participate in the survey. Eighty-eight percent were found eligible for the interview. Furthermore, 91.2 percent of eligible respondents completed the interview. Therefore, the final response rate is 29.9 percent.
PRINCETON SURVEY RESEARCH ASSOCIATES