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The Data Storage Report - July 1996 Volume 11, Issue 7


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SURVEY SHOWS INCREASE INTERNET USE COSTS ON-LINE SERVICES

Survey results released this month by Computer Intelligence (CI) of La Jolla, Calif. shows the rapid growth of Internet and intranet use led to a decrease in the usage of on-line services in the workplace. The 1996 Computer Intelligence (CI) Consumer Technology Index (CTI) study, a large, comprehensive survey of personal computer use in the United States found 10 million PC users became regular users of the Internet last year, a whopping 115% increase.

According to the survey, commercial on-line services added four million new users in 1995, an increase of about 25% from the prior year. “The growth in on-line use was among users in the home segment,” says Dave Tremblay, Senior Industry Analyst at CI. “The number of users accessing on-line services at work actually declined, as Internet and intranet applications began to displace these services. We expect this trend to accelerate throughout 1996 and beyond.”

Of the Internet applications available, E-mail remains the most common for users in all three segments of the PC market: home, workplace and self-employed. About three quarters of all Internet users employ e-mail (see table below).

However, use of World Wide Web services showed the largest growth in 1995. Internet users browsing the Web jumped by 24 points to 62%. PC users who use their machines in a workplace environment are less likely to browse the Web than home or self-employed PC users. Internet users in the workplace also are less likely to read newsgroups or participate in chat rooms.

Even among PC users, already a decidedly upscale group, Internet users stand out. Median annual household income among Internet-using households is nearly $58,000 - $10,000 higher than for households not using the Internet and about 75% higher than the median income for all U.S. households.

In addition, more than half (53%) of Internet households include at least one college graduate. This compares to 42% of households that have PCs but are not using the Internet and to about a quarter of U.S. households without PCs.

“ Even as the use of PCs is spreading into households with lower income and education levels, Internet use remains an emphatically upscale activity,” said Tremblay. “Those who are using the Internet are primarily using communication and information-oriented services. Shopping, ticketing and other commercial or financial services have made some inroads, but they remain largely sidelights, so far. For most Internet users, e-mail, Web browsing, and to a lesser extent, newsgroups, remain the focus. ”

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Internet PC's Using Each Service (at End of 1995)
  1994
1994
E-Mail 78% 74%
Browse Web 38% 62%
Read Newsgroups 39% 35%
Telnet/FTP 31% 23%
Interactive Chat 22% 22%
Access Commercial Services 17% 16%
On-Line Banking N/A 3%
Source: CI's Consumer Technology Index, 1996