Online Survey Reveals What Netizens Desire Most From WebTV

Business Wire, Feb 10, 1997

NEW YORK--(BUSINESS WIRE)--February 10, 1997--

Costs vs. features prove primary concern in purchase decision

A new survey released today by Cyber Dialogue, the premiere online research and database marketing company, shows that 51 percent of cybercitizens would purchase WebTV, a service that delivers the Internet via television, in addition to a PC for use in their home.

While respondents indicated they are interested in purchasing WebTV, most aren't willing to pay for the costs of this capability. When asked how much they would be willing to pay for a WebTV terminal hook-up in their home and one year of unlimited access (the hook-up/set-top box currently costs about $330.00 plus $20 per month for access fees): 21 percent said less than $50; 18 percent said $50 - $99; and 24 percent said $100 - $199.

The survey also examined what types of features and services respondents expect from WebTV. Respondents rated the following features they feel are absolutely essential: ease of access (85 percent); ability to send e-mail (85 percent); "TV quality" video over ordinary high speed modems (82 percent); graphic and sound quality (79 percent); and Telephony - able to make long-distance calls through the Internet (71 percent).

"People aren't looking for the 'bells and whistles' yet," said Kevin Mabley, Cyber Dialogue's Director of Research. "They want the basics -- affordable surfing with unlimited access. It's all about communication convenience."

Parental regulation is also a factor in purchasing WebTV. Sixty-four percent of respondents said it is absolutely essential for WebTV to offer options that allow parents to protect or regulate areas which might be inappropriate for children.

What will the future hold in terms of new WebTV capabilities? Respondents expect the following features to become a reality: interactive capabilities (78 percent); videoconferencing (78 percent); free set-top box with service subscriptions (77 percent); built in ports to handle devices such as printers and cable modems (75 percent); the ability to log on from other people's WebTV terminals (68 percent); and ability to pay bills online (67 percent).

The survey also uncovered major obstacles that may keep consumers from buying the product in the near future. The top five deterrents include: monthly service fees in addition to cable and current e-mail accounts (85 percent); expense of actual product (70 percent); limited choices in selection of WebTV provider/not able to change (66 percent); providers - not enough out there yet (61 percent); and tying up your TV for other household members (59 percent).

This survey, of 644 cybercitizens, was conducted online for Cyber Dialogue's January 1997 Omnibus and has a margin of error /- 5 points.

As part of a collaborative effort between Cyber Dialogue and Business Wire, online polls dealing with the Internet, consumer issues and news of the day are made available to Business Wire subscribers. Headquartered in New York City, Cyber Dialogue (http://www.cyberdialogue.com)conducts market research online via the World Wide Web (WWW) and through an agreement with America Online (AOL). The company offers a wide range of market research solutions, including online focus groups, e-mail polls and consumer panels. The company also develops and sells database mining and decision support software for online and interactive marketing. Cyber Dialogue is the sister company to Yankelovich Partners, the nation's preeminent provider of strategic custom research.

CONTACT: Jennifer Galvanek

G.S. Schwartz & Co.

(212) 725-4500

e-mail: jgalvanek@schwartz.com