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Tech-Savvy Consumers Drive Growth In Home Networking

Tech-Savvy Consumers Drive Growth In Home Networking

The number of US households with a home network increased by more than 40% during 2002, claims a new report from the Yankee Group.

According to The 2002 Technologically Advanced Family Survey 8% of PC owners, reported having a home network, an increase of 43% over 2001. The primary function of the system is that it enables multiple computers to be used simultaneously to access the internet.

While households do not as yet assign the same level of importance to entertainment applications, including audio, video and gaming as they do to productivity functions, “consumers are embracing multimedia applications that leverage broadband connections to acquire entertainment content.”

Technologically Advanced Families (TAFs) are the most enthusiastic proponents of connectivity solutions with 23% owning a home network. This compares with 3% penetration of secondary adopters and 2% of late adopters. High-speed internet users benefit most from home networks and a recent survey by Parks Associates found that more than a quarter of broadband subscribers are likely to purchase one this year (see Wireless Home Networks Win Consumer Backing).

“Product and service companies must gain traction among early adopters, not only to drive near-term sales growth, but to establish brand recognition and secure channel relationships,” said Dominic Ainscough, Yankee Group Consumer Technologies & Services senior analyst. “Device manufacturers, service providers and retailers can spur home networking adoption most effectively by applying needs-based segmentation to identify consumers with the greatest interest and who are most likely to purchase in the near term.”

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