Report: Internet Appliance Market Poised to Take Off

Eighty-five million U.S. adults are at least somewhat receptive to
one or more of three Internet appliances concepts–Internet TVs,
screenphones, and portable Internet devices, according to a new study.

The report, “Consumer Demand For Internet Appliances,” is new research from FIND/SVP and Cyber Dialogue.

With the Internet becoming mainstream and the home PC market approaching its
limitations, demand for simpler, lower cost (non-PC) Internet access devices
is set to explode, the study predicts. And the increasing reliance on e-mail
will fuel interest in Internet appliances, which will, in turn, make e-mail
more accessible and universal.

“Internet TV is the best-positioned of all Internet appliances over the short
term,” said the report’s author, Cathy Santosus. “That’s largely because
Internet capability can be bundled with TVs and cable set-top boxes.”

Currently, 32% of adults express personal interest in accessing the Internet
from their television, compared with 26% for screenphones and 18% for portable
devices, according to the survey results.

By year-end 1999, more than 1 million adults will access the Internet via
television, more than three times the number that will use screenphones. At
the same time, some 800,000 will access the Internet using portable devices.

Using data from FIND/SVP’s “1997 American Internet User Survey,” the report
provides data and analysis by type of appliance, number of users, penetration
level and target segment, including market forecasts to 2002.

The 282-page report is priced at $2,295.

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