Streaming Media Usage Spikes 65 Percent Over the Past Year, According to Nielsen//NetRatings; More than One-Third of All Web Surfers Viewed Streaming Content in November

Business Wire, Dec 12, 2000

Business/Technology Editors

NEW YORK--(BUSINESS WIRE)--Dec. 12, 2000

Nielsen//NetRatings, a leading Internet audience measurement service from Nielsen Media Research, ACNielsen eRatings.com and NetRatings, Inc. (Nasdaq:NTRT), today revealed that streaming media consumption skyrocketed to an all-time high in November 2000, with 35 million Web users at home accessing streaming content, a 65 percent increase from 21 million during the same month last year (see Table 1).

Thirty-six percent of all Web surfers accessed some form of streaming media in November 2000, as compared to 28 percent during the same time last year.

Table 1. Streaming Media Percent Growth and Reach (U.S. Home)

                           Unique Audience   Unique Audience  Percent
                              Nov. 1999         Nov. 2000      Growth
                           ---------------   ---------------  -------
Total Streaming
Audience                     21.0 million      34.7 million     65%

Total Active
Internet Users               74.0 million      95.4 million

Percent Reach of
Streaming Audience           28% reach         36% reach

Source: Nielsen//NetRatings, November 2000

High profile events supported much of the growth in streaming media usage.

"Streaming consumption is closely linked to huge media events," said T.S. Kelly, director of Internet Media Strategies at NetRatings. "Events such as the Super Bowl, Olympics and Election 2000 significantly contributed to the increased use of streamed audio and video content. Historically, branding opportunities have been limited to high profile events in television, radio and print, but now, streaming media is wooing and winning eyeballs on the Web."

"The demand for streaming media content such as movie trailers, commercials and full-length feature films continues to grow aggressively. In the past month alone, movie trailers for `The Grinch' and `Charlie's Angels' were viewed by thousands of people," Kelly continued.

Streaming Goes Mainstream

In November 2000, more females accessed streaming content over the past year, surging 77 percent to 16 million, compared to only nine million last year. Nearly 19 million males watched streaming media content from home, jumping 56 percent from November 1999.

Streaming activity is rapidly growing among kids and teens as well as seniors. Nearly seven million kids and teens ages 2-18 accessed streaming content during the month of November, surging 65 percent from the same period last year. Year over year growth for seniors ages 65 and over totaled 95 percent with 1.4 million unique visitors clicking on some form of streaming media.

Across the board, streaming media consumption rose for various ethnic groups. Streaming media usage at home among African Americans rocketed to 3.5 million unique users last month, rising 118 percent compared to a year ago. Usage by Caucasians jumped 64 percent to more than 30 million users, while the Asian American group's usage grew 41 percent to 797,000 users. Hispanics accessing streaming content rose 34 percent to 1.9 million users.

Media Convergence

People with high-speed connections to the Web, tallying 11.2 million home users in November 2000, are more likely to consume streaming media content. Active users with a broadband connection in the home (over 56 Kbps) were 50 percent more likely to access streaming media than their dial-up counterparts (56 Kbps and below).

"What we're seeing right now are the first steps towards convergence. As the popularity of streaming media grows, television and radio companies are beginning to produce content that captures the Web user, leveraging different media to reach their target audience," said Kelly.

About Nielsen//NetRatings

Nielsen//NetRatings, the Internet audience measurement service from Nielsen Media Research and NetRatings, Inc., collects real-time data from more than 70,000 panel members in the United States. The U.S. panel sample consists of 62,000 at-home users and 8,000 at-work users. These panels collectively represent the largest representative media research sample of Internet users in the industry. Internationally, Nielsen//NetRatings services are provided via ACNielsen eRatings.com, a venture between ACNielsen (NYSE: ART) and NetRatings, Inc. Globally, Nielsen//NetRatings services measure the Internet experiences of nearly 200,000 global Internet users.

Nielsen//NetRatings services use unique technology capable of measuring both Internet use and advertising to provide the most timely, accurate and comprehensive Internet usage data and advertising information in the global marketplace. Nielsen//NetRatings services leverage proprietary data-collection technology from NetRatings, Nielsen Media Research's 50 years of expertise in research and audience measurement, and ACNielsen's international leadership in supplying market research information covering more than 100 countries. For more information, please visit www.nielsen-netratings.com.

Editor's Note: Please source all data to Nielsen//NetRatings.