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In Broadband Households, the Internet has Nearly Caught Up With TV and Radio in Battle for the Consumer's Time

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 22, 2000

Arbitron and Coleman Study Shows People in Broadband Households Are Far More Likely to Use Streaming and Downloaded Internet Content

Broadband in American homes has catapulted the Internet to a position on par with television and radio in terms of time spent with media, according to a new study by Arbitron, a Ceridian Corporation company (NYSE: CEN), and Coleman, a media research firm specializing in music, trends and branding. The study, "The Broadband Revolution: How Superfast Internet Access Changes Media Habits in American Households," released today at the National Association of Broadcasters' Radio Show reveals that the average American spends 33 percent of his or her typical media day with television, followed by radio (28 percent) and the Internet (11 percent). In broadband homes, however, the Internet's share of media time surges to 21 percent, equivalent to television (24 percent) and radio (21 percent). Compared to the average household, people with broadband access are much bigger consumers of all electronic media and entertainment, spending 22 percent more time with media than those without broadband. This is largely due to increased Internet usage, as people in broadband household spend 134 minutes per day online, 61 percent more than people in dial-up households. "Broadband changes everything," said Warren Kurtzman, vice president, Coleman. "This study provides clear evidence that we've only begun to see the Internet's true impact on media usage." "Broadband catapults the Internet to a position on par with television and radio in terms of media time spent," said Pierre Bouvard, executive vice president, Arbitron. "Half of Americans with broadband report they are making more online purchases now that they have broadband. The study reveals that Americans are very satisfied with broadband service." Even more interesting from the perspective of traditional broadcasters, Americans say the use of Internet-only audio does not occur out of dissatisfaction with traditional over-the-air radio. Satisfaction levels with traditional radio remain high in broadband households. The study shows that broadband households are twice as likely to try downloading and streaming content from the Internet, and over three to four times more likely to do so on a regular basis. For example, 49 percent of those in broadband homes have tried streaming audio, as compared to 20 percent for the U.S. population. Sixteen percent of broadband users report listening to streaming audio in the past week, as compared to four percent on average. The study also showed that people in broadband households are twice as likely to sample Internet-only audio channels (31 percent) as compared to those in dial-up households (18 percent). A complete report detailing the study's findings is available from Arbitron (www.arbtiron.com) and Coleman's (www.colemanresearch.com) Web sites.

About Coleman

Coleman, headquartered in Research Triangle Park, North Carolina with offices in Los Angeles and Hamburg, Germany, is a media research firm that has provided deeper insights into music trends and branding opportunities to its clients since 1978. Its client base includes MTV and VH1 and hundreds of radio stations in North America and Europe, including those owned by Infinity Broadcasting, Emmis Communications, Jefferson-Pilot Communications, Citadel Broadcasting, Susquehanna Radio Corporation, Entravision Communications Corporation, Sandusky Radio, Inner City Broadcasting, Mid-West Family Broadcast Group, Hubbard Broadcasting and Capitol Broadcasting. Among the services offered by Coleman are Plan Developer perceptual studies, which provide strategic planning tools for media outlets. Coleman FACT(R) studies provide radio stations with the most advanced strategic approach to music testing available.

About Arbitron

The Arbitron Company is an international media and marketing research firm providing services to broadcasters, advertisers and advertising agencies in the United States, Europe and Japan. In the United States, Arbitron measures local radio audiences, and develops qualitative measures of local consumers through RetailDirect and through Scarborough Research, a joint venture of The Arbitron Company and VNU Marketing Information Services. Tapscan Worldwide(R), a market leader in desktop development and part of the Arbitron family, offers a host of software services that simplify both data and analysis and the buy/sell process. In the United Kingdom and Europe, Continental Research conducts market research in the media, financial and telecommunications and advertising arenas. Arbitron Internet Information Services provides survey research, consulting and methodological services including Arbitron Webcast Ratings (formerly InfoStream), America's first webcast ratings service. Arbitron is a Ceridian company. Ceridian Corporation (www.ceridian.com) is a leading information services company that serves the human resources, transportation and media information markets. Ceridian's human resources businesses offer HR/benefits solutions that support organizations' complete employment life cycle and maximize their investment in people. Its Comdata business is a provider of transaction processing and information services to the transportation and other industries, and its media services business, Arbitron, is a research company serving the media industry.

All product names used are trademarks or registered trademarks of their respective owners. This press release is available on the Arbitron Company Web site at www.arbitron.com, tbe Coleman Web site at www.colemanresearch.com and on the KCSA Worldwide Web site at www.kcsa.com.