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What users think of broadband

A McKinsey study suggests that the persistence of distinct consumer segments will force companies to serve each of them differently.

FEBRUARY 2001 • Joseph Berchtold, Veit Dengler, and Srividya Prakash

Much current thinking about broadband deals with how it gets delivered (see "Pipe war"). But scant information is available about the on-line behavior of broadband consumers and how it might evolve in the future, though such insights are important to businesses developing strategies to serve them.

At first glance, early findings from research by McKinsey, working together with Media Metrix and Vividence,1 show that many consumers are using broadband much as they used narrowband. When the sites that broadband and narrowband consumers visit are organized into content categories and ranked according to the percentage of unique visitors viewing each, there appears to be little difference between the two groups of users, though broadband consumers appear to sample a wider range of content. What attracts consumers to broadband is the fact that it is "always on" and much faster than narrowband and therefore makes for a more efficient and intense on-line experience. Not surprisingly, once consumers have a broadband connection, they spend a lot more time on-line (Exhibit 1).

Broadband has increased the number of people who use the Web’s multimedia features (Exhibit 2). More important, there are significant differences in the types of sites at...

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