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Internet Adoption Surges: 2 Million Households Access Web from Home

Strategic Insights

— 1 min read

The number of households accessing the World Wide Web from home surged by 50% in May 1995, breaking the 2 million household mark, according to The NPD Group's National Survey of Hardware Ownership. This growth is largely attributed to online services such as America Online, Prodigy, and CompuServe, with subscriptions up 11% over the previous quarter. America Online leads the way, with subscriptions increasing by 19% during the first quarter of 1995. Despite concerns about member turnover, the outlook for online services and hardware remains optimistic.

Key Takeaways:

  • The number of households accessing the World Wide Web from home rose by 50% in May 1995, breaking the 2 million household mark.
  • As of April 1995, 5.1% of the nation's households, or 5 million households, were online, representing an increase of 11% over the previous quarter.
  • America Online leads the way in growth among online services, with subscriptions up 19% during the first quarter of 1995.
  • Prodigy membership rose about 5%, while CompuServe membership remained steady between January and April.
  • The number of modem owners is 15 times greater than the number of households currently online, indicating significant growth potential.
  • 1.3 million households plan to join one of the commercial online services in the next six months.
  • NPD Vice President Steve Coffey cautions against overstating future growth due to concerns about member turnover, or "churn".

Statistics:

  • 50% increase in households accessing the Web from home in May 1995.
  • 2 million households broke the household mark in May 1995.
  • 5.1% of the nation's households (5 million) were online as of April 1995.
  • 11% increase in online subscribers over the previous quarter.
  • America Online subscriptions up 19% during the first quarter of 1995.
  • Prodigy membership rose about 5%.
  • CompuServe membership remained steady between January and April.
  • 33.2% of the nation's homes (32.3 million U.S. households) reported owning a PC in April 1995, up 1.3% since January.
  • 1.3 million households plan to join one of the commercial online services in the next six months.
  • Over 10 million households, current PC owners and non-owners combined, plan to purchase a new PC or upgrade their current model during the next six months.

Sources:

  • The NPD Group's National Survey of Hardware Ownership, June 1995.
  • Leslie Singer, 516-625-2302, NPD Group.
  • Steve Coffey, 516-625-4297, NPD Group.

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