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A
new study by Jupiter Media Metrix, the Internet and new technology
analysis and measurement agency, reports that more than two-thirds
of US consumers would not pay for any services on the Internet,
including enhanced e-mail, instant messaging or file-sharing
capabilities.
The JMM report, entitled, 'Paid Consumer Services: Assessing
Market Opportunities', consumers voiced greater resistance
about paying for online services (69 per cent) than they did
about paying for content (63 per cent). A study which preceded
the report, found that although about one-third of online
adults in the US use a free service as their primary personal
e-mail account and over 60 per cent use an ISP, only 12 per
cent expressed their willingness to pay for enhanced e-mail.
Jupiter senior analyst David Card says the research indicates
that there is no obvious killer-application online service
that consumers would pay for. "Companies should bundle online
services and price them at less than thirty dollars per year.
When transitioning from free to fee, service aggregators must
solicit early consumer feedback and promote packages with
e-mail aggressively," he adds.
A
March 2002 Jupiter Consumer Survey, he says, found that only
eight per cent of online adults would pay to access recruitment
and job sites; six per cent would pay for enhanced instant
messaging and file-sharing capabilities. Respondents said
they are least likely to pay for personals and dating services
(two per cent). The study randomly surveyed over 2000 individuals
for the purpose.
"With
high consumer resistance in the air, companies that want to
profit from online services should consider a menu approach,
offering several courses or choices. To date, no portal or
ISP has experimented with it - those that do will have a jump
start on the market," Card says. The survey indicates that
consumers are less confused about where they might purchase
online services than where they would purchase content. Consumers
would feel most comfortable with paying their ISPs (47 per
cent) or portals (16 per cent) for online services. According
to Jupiter analysts, ISPs that have an existing billing relationship
with their customers should have the easiest time selling
services, with portals becoming other logical aggregators.
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