LIFE ONLINE How the Internet is Changing Consumer Behavior and Expectations 5.9.06 Lee Rainie SOCAP Washington, D.C.

1. LIFE ONLINEHow the Internet is Changing Consumer Behavior and Expectations5.9.06Lee RainieSOCAPWashington, D.C.

2. Who’s blogging this? Writings of a Loud Librarian Indiana Librarian Marissa Priddis http://theloudlibrarian.net/2005/10/monterey-learning-stuff.html

3. Home media ecology - 1975 Product Route to homeDisplayLocal storage TV stations phone TV Cassette/ 8-track broadcast TV radio broadcast radio stereo Vinyl album News mail Advertising newspaper delivery phone paper Radio Stations non-electronic Tom Wolzien, Sanford C. Bernstein & Co

4. Home media ecology – now Product Route to homeDisplayLocal storage cable VCR TV stations phone/DSL TV Info wireless radio DVD “Daily me” broadcast TV PC Web-based storage content iPod /MP3 server/ TiVo (PVR) Cable Nets broadcast radio stereo PC Web sites satellite monitor web storage Local news mail headphones CD/CD-ROM Content from express delivery pager individuals iPod / storage portable gamer MP3 player / iPod Peer-to-peer subcarriers / WIFI cell phone pagers - PDAs Advertising newspaper delivery phone cable box Radio stations PDA/Palm game console game console paper Satellite radio non-electronic storage sticks/disks Adapted from Tom Wolzien, Sanford C. Bernstein & Co

5. Ball State: Media use on average day

6. 73% of adults own cell phones 45% of teens own them Mobile devices

8. 55% of adults own digital cameras 43% of teens own them Mobile devices

9. 43% of adults own video cameras 37% of teens own them Mobile devices

10. 30% of adults own laptops 32% of teens own them Mobile devices

11. 20% of adults own MP3 players 47% of teens own them Mobile devices

12. 11% of adults own a PDA or Blackberry 7% of teens own them Mobile devices

13. Internet and broadband adoption 1996-2006 All internet - 147 mill. Broadband - 83 mill.

14. Download music – 51% Share own creations – 33% For a full list of activities tracked by PIP please go to: http://www.pewinternet.org/trends/Internet_Activities_4.26.06.htm Activities of young are not as great as their elders Activities of young greatly outpace their elders

15. Multitasking and attention deficits: What else were you doing when you last… Source: Forrester Research, 2004

16. Kaiser Family Foundation, Generation M, March 2005

17. Kaiser Family Foundation, Generation M, March 2005

18. Content creation 33% of online teens share their own creations online, such as artwork, photos, stories, or videos

19. Content creation 32% have created or worked on webpages or blogs for others, including those for groups they belong to, friends or school assignments

20. Content creation 22% report keeping their own personal webpage

21. Content creation 19% have created their own online journal or blog

22. Content creation 19% say they remix content they find online into their own artistic creations

23. Steve Bartman’s journey

25. Fragmented media environment(% of all Americans who “regularly” go to news source: PRC People/Press)

27. Internet use at major life moments

28. Internet use at major life moments

29. Expectations of internet users– 2002

30. Industrial Age Broadcast Model Walter Cronkite New York

31. Information Age Many-to-many model Industrial Age Broadcast Model Walter Cronkite New York Gary Brolsma New Jersey

33. The J-curve laws • Computing power doubles every 18 months – Moore’s law • Communications power doubles every 9 months with improvements in fiber optics and compression – Gilder’s law • Spectrum power is enhanced with efficiency improvements in spectrum allocation and use • Storage power doubles every 12 months – disk law

35. Thank you! Lee Rainie Director Pew Internet & American Life Project 1615 L Street NW Suite 700 Washington, DC 20036 Lrainie@pewinternet.org 202-419-4500