Dataquest Survey Shows U.S. Households Are Turned Off by Internet Television; New Program Examines the Convergence of the PC and Consumer Electronics Markets.

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 16, 1996--As manufacturers begin to release new products that allow television viewers access to the Internet via their television, a new Dataquest survey shows that 93 percent of households polled in the United States say they do not plan to purchase an Internet-enabled television or set-top box at any point in time.

"The Internet television in its current form does not have significant market potential in Dataquest's view," said Van Baker, director and principal analyst of Dataquest's The Digital Consumer program. "The interface and usability of the device leaves a lot of room for improvement, and the value to the consumer -- especially the non-PC household -- is questionable."

Internet television and set-top box manufacturers have said that the target for their product is the household that does not own a personal computer but wants to have access to the Internet through a less-expensive product. However, Dataquest's survey shows that households that have a PC are more likely to purchase an Internet television than are non-PC households.

"The product has low overall purchase intent, and the intent that does exist is higher in the segment that is not the target market," said Baker.

While Dataquest believes thhich a user profile is developed and content t feature that would make Internet television morgs for local theaters, the value of the contenements that comprise Internet television and some of the participants in this emerging market. To evaluate this technology, Dataquest looks at many of the factors that need to be considered, such as the social context, the user interface, and the value to the user.

This report is part Dataquest's new The Digital Consumer program. Using telephone surveys of nearly 7,000 home consumers, this program will size and forecast the market impact of the convergence of the PC and consumer electronics markets, analyze the technologies driving and supporting this convergence, and analyze the changing technology adoption and usage patterns.

This program will focus on the adoption of technology initially by the U.S. consumer and ultimately the worldwide consumer. Technologies tracked by the program include: PCs, cellular phones, two-way pagers, handheld computers and organizers, digital cameras and camcorders, Internet-ready television and set-top boxes, DVD players, home theater systems, direct satellite television, and ISDN and cable modems.

To purchase the report mentioned above, or to subscribe to The Digital Consumer program, please call 800-419-DATA. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com .

Dataquest is a 25-year-old global market research and consulting company serving the high-technology and financial communities. The company provides worldwide market coverage on the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry. Dataquest is a Gartner Group Company.

CONTACT: Dataquest

Tom McCall, 408/468-8312

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