Yankelovich Survey: Consumers Prefer Internet Access via Television Over Personal Computers

PALO ALTO, Calif.--(BUSINESS WIRE) via ATP
Using a TV remote control instead of a mouse for Internet access? That's what the majority of consumers would do if given the choice when it comes to going online. A new study released today by Yankelovich Partners Inc. indicates that consumers without Internet access would prefer to surf the Internet on a television by almost two-to-one. The study showed that 52 percent of respondents would be most likely to use TV Internet access, compared to only 31 percent who would prefer computer access if given a choice.

Sponsored by WebTV Networks Inc., the developer of the WebTV set-top box and WebTV Network service that delivers the Internet through television, the Yankelovich survey suggests that the majority of consumers without an online connection would prefer to browse the Internet in a more comfortable and less intimidating way, by offering this feature in their living rooms, on their television sets.

"Consumer receptivity to TV Internet access is suprisingly strong," said Dr. Hal Quinley, partner for Yankelovich Partners Inc. "Close to 70 percent of those surveyed look favorably upon the emergence of an easier, more affordable alternative to Internet access which is delivered on television sets."

A number of factors seem to prevent consumers from deciding to connect their homes to the Internet. Although approximately 35 percent of U.S. homes have a personal computer, only about 10 percent take advantage of online services, according to industry findings. For non-PC users, the new study confirms that the biggest obstacles for going online are the high cost of computers (42 percent), the question of relevant information (33 percent) and the complexity of the Internet (30 percent). Seventy-five percent of the respondents want the Internet to be simple and easy to use, lead them on a pursuit of their personal interests, and provide strong value through a set rate for unlimited usage.

"The Internet needs to find, secure and build its relationship with new users in order to flourish," said Gary Arlen, an industry analyst and president of Arlen Communications Inc. of Bethesda, Maryland. "Television access will open up an entirely new audience to the Internet. Bringing the Internet to television must be part of the mix if the Internet is to grow into a true consumer resource."

The survey indicates that the Internet is of greatest value when it answers consumers' needs to simplify or enhance their lives. Using the Internet to research products before purchase intrigued 69 percent, suggesting that consumers prefer to make educated choices when shopping and would find the Internet a helpful shortcut to the information.

Pursuing personal interests was a primary desire for 64 percent of the consumers polled, with the Internet offering an easy way to research such things as checking snow conditions for skiers, comparing hotels or restaurants for travelers, and trading collectibles online. Sixty-four percent of consumers surveyed also viewed the Internet as a strong addition to a child's education to serve as a worldwide library for their studies.

This news bodes well for the recently-announced WebTV Networks Inc., the first company to provide an integrated solution for easy-to-use, affordable Internet access over television. The WebTV technology has been licensed for the Sony TV Internet Terminal and the Philips/Magnavox Internet TV Terminal, available at consumer electronics stores nationwide.

"Until now, the Internet has been an expensive and confusing proposition for most people," said Steve Perlman, co-founder, CEO and president of WebTV Networks Inc. "The Internet can be like dropping someone in the middle of a foreign country they've never visited, where they don't know the language, the culture or the road maps. Putting the Internet on a television set and using a remote control to navigate opens it up to the rest of us. The Internet becomes something we can understand and relate to, and we can join with our families in exploring the abundance of information, education and entertainment on the Web."

The survey was conducted from September 25 to October 1, 1996 by Yankelovich Partners, a leading public opinion and marketing research firm. The telephone survey consisted of a random sample of 1,000 Americans between the ages of 18 and 64 with and without Internet access.

Founded in June 1995 by three multimedia pioneers -- Steve Perlman, Bruce Leak and Phil Goldman, WebTV Networks is dedicated to bringing high-quality, affordable Internet access to television consumers through integrated, easy-to-use standards-based technologies and services.

WebTV is a trademark and WebTV Network is a service mark of WebTV Networks Inc.

Copies of the complete survey and supporting charts and graphs are available upon request.

CONTACT: WebTV Networks Inc. | Kristy Lepley, 415/614-2729, [email protected] | or | Smith Public Relations | Diana Soltesz, 310/788-0456, [email protected]