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PRESS RELEASE

U.S. Consumers Are Ready to Live the Connected Life, New Cisco Survey Finds

55 Percent of Consumers Cite Up-Front Cost and Lack of Ongoing Support as Primary Barriers to Adoption of the Connected Life
Service Providers Are Poised to Benefit by Reducing Consumer Barriers

WASHINGTON - The Cable Show 2009 - April 1, 2009 - Cisco today announced the Connected Life Market Watch, a recurring primary research platform designed to identify market transitions and key inflection points in consumers' behavior and expectations. The study, conducted by Cisco's strategic global consulting arm, the Internet Business Solutions Group (IBSG), highlights U.S. consumer needs, attitudes and behaviors about how and where they prefer to acquire services for the Connected Life, offering ubiquitous, personalized and seamless network experiences for subscribers at home, at work and on the move. The research indicates that U.S. consumers are ready to experience the Connected Life and that service providers are strongly positioned not only to seize this emerging opportunity, but to fundamentally accelerate the marketplace.

Facts:

  • The Connected Life Market Watch program aims to provide market insights that empower Cisco, its customers and partners to seize market opportunities and lead market transformation. With this platform, Cisco® IBSG will field new research cycles three times a year, focusing on trends in the service delivery experience, the mobile consumer and transitions in video entertainment.
  • Survey respondents answered questions regarding their level of access to media technology, the devices they used for viewing video, the amount of time they spent watching video on different devices, the reasons they seek certain video experiences and their buyer values relating to where and from whom they obtain such solutions.
  • Insights in this report draw upon online survey results of broadband users, conducted in March 2008, August 2008 and January 2009.

Key findings:

  • 55 percent of consumers cite up-front cost and lack of ongoing support as primary barriers to adoption of services for the Connected Life.
  • 30 percent of U.S. broadband users prefer to receive new technology as a service-provider-managed service, 26 percent opt for a do-it-yourself solution, while the largest group of consumers have no strong preference (44 percent).
  • TV viewing on the Internet is increasing; 33 percent of broadband consumers under the age of 30 watch a TV program on the Internet at least once per week.
  • Consumers over 30 who watch a TV program on the Internet weekly watch 20 percent less traditional, live TV broadcasts than their peers.
  • About half of U.S. broadband consumers are interested in bridging the video islands in their homes, yet less than 5 percent have an Internet-to-TV video device.
  • 16 percent of current premium movie channel subscribers expect to cut or reduce their spending on movie channels next year. While the vast majority of consumers expect to maintain spend on core services (basic voice, video and data), enhanced services are more at risk.
  • If consumers need to further tighten their belts and reduce spend on core services, only 29 percent of 25 to 29-year-old consumers would keep Pay TV as one of their final two service provider services.

Supporting Quotes:

  • "Fast-evolving technology, a vast array of content, and a multitude of service options have primed consumers toward the Connected Life," said Scott Puopolo, vice president and global head of service provider, Cisco IBSG. "Technology and behaviors have signaled a profound transformation in the way that consumers experience news, entertainment, business and government, among others. Service providers are in a unique position to lead and accelerate this emerging consumer market by managing and enhancing the consumer experience at every touch point."
  • "As incumbent providers of video entertainment services, we have a unique relationship with our customers," said Peter Stern, chief strategy officer at Time Warner Cable. "Time Warner Cable has demonstrated the ability to accelerate technology adoption and bring it to the mass market, and we are committed to delivering an advanced technology platform that offers more social, more personal, more interactive consumer experiences for the Connected Life."

The upcoming Connected Life Market Watch installment will focus on exploring trends in data, communication and video behaviors of the mobile consumer in 13 countries worldwide, including the United States.

Additional Supporting Resources:

Technorati Tags: Cisco, Connected Life, IBSG

About Cisco

Cisco, (NASDAQ: CSCO), is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

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Cisco, the Cisco logo and Cisco Systems are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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