iPhone Shopper Demographics Changing

There is no doubt that Apple iPhone users are atypical of most mobile phone users. They are younger, more technologically savvy and richer. In July 2008, people checking out the iPhone on AT&T's Web site were about 40 percent more likely to have an income of $100,000 or more, compared to the typical wireless shopper. 

At annual income levels below $59,000, iPhone shoppers were about 25 percent less likely to be looking. In the $60,000 to $100,000 annual income bracket, iPhone inquires were just about the same as the "average" mobile phone inquirer.

That suggests the next big surge of usage will be concentrated in the ranks of users with incomes in that $60,000 to $100,000 range. It is not yet a truly "mass market" device, yet. But there are some signs of change. 

Social Networking: Glass Half Full

More than one-half of adults surveyed in 17 countries do not know what social networking is, according to Synovate. The company surveyed 13,000 consumers in Brazil, Bulgaria, Canada, France, Germany, India, Indonesia, Japan, the Netherlands, Poland, Russia, Serbia, Slovakia, South Africa, Taiwan, the United Arab Emirates (UAE) and the United States if they were familiar with social networking.

U.S. 3G Catches European Penetration Rates

comScore reports that the United States has caught up with Western Europe in the adoption of third generation wireless subscribers.  Some 28.4 percent of American mobile subscribers now have 3G devices compared to 28.3 percent in the largest countries in Europe. The number of U.S. subscribers with 3G enabled devices has grown 80 percent to 64.2 million during the past year. 

Chrome Gaining Share?

Google's Chrome, just a few days into beta launch, already owns one percent of the Web browser market. Apple's Safari browser has 2.4 percent share. It isn't clear how much of that share is people test driving Chrome, and who may decide to stick with their default browser. At Silicon Alley Insider, about six percent of visits on Sept. 4 were from Chrome browsers, about 41 percent from Firefox browsers.

On one of my blogs, between Sept.2 and Sept. 3, 2008, Chrome browsers represented more than five percent of visits. About 49 percent were Internet Explorer while 40 percent were Firefox browsers. Safari users were about four percent. 

FCC Acts on Potential Interference Issues

The Federal Communications Commission has ordered a freeze on the granting of any equipment authorization requests for wireless microphones that would operate in any of the 700 MHz Band frequencies. In addition, the FCC is considering a ban on any wireless microphones operating in the space. The issue, as often is the case for licensed spectrum holders or prospective holders, is signal interference.

The spectrum in question is in the over-the-air band corresponding to broadcast channels 2 through 51, which will be converting to digital broadcasting next February 2009. To avoid local interference with broadcast TV signals, wireless microphones would be restricted to the guard bands between each of the 6-MHz channels.

Many of you who attend conferences might have discovered that Research in Motion BlackBerries cause significant interference with wireless microphones, enough so that audiovisual personnel always will ask for speaker or panelist BlackBerries to be turned off. Potential interference also has been an issue with various tests of "white spaces" between TV channels as well.

Boingo Supports Sony Ericsson Handsets

Boingo Wireless now supports  Sony Ericsson UIQ 3.0 handsets. Owners of those devices now can download the Boingo Mobile application to get online worldwide at more than 80,000 Boingo hotspots. Boingo Mobile supports Wi-Fi enabled Sony Ericsson W960i, P1i and G900 models.  

 

Boingo’s network includes more than 500 airports, including 85 of the top 100 airports worldwide, as well as hotels, coffee shops, restaurants, cafés and retail locations.

As an aside, I have been attempting to test the Boingo Wi-Fi network in my normal travels. The issue for me is that I am an untypical user. There is fixed broadband at every tethered location where I normally work and I have a Verizon Wireless 3G card for mobility. 

At some airports I also have access to the T-Mobile Wi-Fi network, especially at Denver International--which also offers its own free service--and at the Dulles International Airport, where I also have T-Mobile Wi-Fi access for no additional fee.

The Boingo software is really easy to use, I will say that. 

My particular issue is that the T-Mobile hot spot signal normally is much stronger (I'm right under the radios) where I normally am sitting in either Denver or Washington. Moreover, I have the 3G card, so I typically slap in the 3G card without worrying about the Wi-Fi. 

I normally can get in some minutes of use after boarding the plane by using the 3G, and typically cannot get signal with any Wi-Fi provider out on the tarmac.

I do have a Nokia N95 with Wi-Fi access, so I have been thinking I should test the Boingo service with the mobile. But I am not a typical user. I do lots of keyboard entry, so when I am in a stationary location, my preference is to power up the PC. 

In my case, Wi-Fi is a secondary or backup service for a PC. The other mobile I carry does have mobile data access as well, so there's even more complication. 

If I didn't have 3G and other options, there's no question Boingo would be useful, either for PC or mobile handset access. 

 

Duh! Online TV Viewing is Growing

Confirming what you already knew, the Conference Board reports that online TV viewing has been gaining in popularity. Nearly 20 percent of American Internet households watch television broadcasts online, double the viewership from 2006. And as if to underscore the observation that both professional and user-generated content are getting traction, the study shows the top two destinations for online broadcasts are programming network home pages and YouTube.com.

Aside from other important considerations Comcast and some other service providers--wired and wireless--may have in enforcing usage caps, such limits also help limit the potential damage from a massive switch to downloading and streaming content direct from the source rather than buying subscription video packages. At the same time, usage caps also create a packaging opportunity: "download from my site and the bits don't count against your cap."

Another trend you probably didn't need further evidence confirmation about: most consumers do not like being forced to observe a set schedule when watching video. "Being able to watch broadcasts on their own time and at their convenience are the top reasons users tune in online," the Conference Board says.

Of course, avoiding commercials and content portability also are important. Nearly 72 percent of online households log on for entertainment purposes on a daily basis, and one in ten users indicates entertainment as the most important Internet activity.

“Most consumers are pressed for time and require flexibility in their daily schedules and TV viewing habits,” says Lynn Franco, The Conference Board Consumer Research Center director. “Being able to watch broadcasts on their own time and at their convenience are clearly reasons why we are seeing a greater number turning to the Internet. And, it is the reason why we would expect to see this trend continue.”

The top five types of shows viewed online are news, drama, sitcom/comedy, reality shows and sports, with user generated content following close behind. Among consumers connecting to online broadcasts, 43 percent tune into the news, 39 percent watch drama shows, 34 percent view sitcom/comedy shows, 23 percent watch reality shows, 16 percent view sports, and 15 percent view user generated content. Other categories attracting viewers include previews, additional content from favorite shows, soap operas, and advertisements.

Among online TV viewers, almost nine out of ten watch online broadcasts at home. About 15 percent say they watch internet broadcasts in the office, and 6 percent watch TV online from other locations, including the library or a friend’s home.

“The shift from appointment TV to content on demand is well underway,” says Michael Saxon, Senior Vice President, Brand and Communications, TNS. “Fundamentally, consumers expect content to be available when they want it, and on the screen of their choice – TV, PC, or mobile. For consumers, PCs enhance content on demand from simply time-shifting to place-shifting. Online content can be viewed in any room in the house, or at work or school.”

The top methods for viewing broadcasts online are streaming video, used by 68 percent of online TV viewers, and free download, used by 38 percent of viewers. The top two destinations for online broadcasts are programming network home pages, accessed by 65 percent of viewers, and YouTube.com, accessed by 41 percent of viewers. Other sites used for access include iTunes, Hulu, file sharing sites, social networking sites, and Limewire. Few consumers are willing--at least so far--to enroll in pay-per-download and subscription services.

The catch there is that advertising is the way users can view "no additional fee" content. Despite the user preference for ad skipping, at some point, ad-supported "no additional fee" programming will not be widely available without ad support. And advertisers won't pay at all, or not as much, if they think the ads can be skipped over.