Tag Archives: Bandwidth

Amazon Cloud Drive may rain on Apple while lightening load for consumers

Early Adopter

Today, Amazon announced the Amazon Cloud Drive and Amazon Cloud Player for Web. This game-changing move will likely bring a boost to the decades-old online file storage services. It may even have the effect of reining in music listeners who may have strayed, since the player will evidently only support purchased songs.

We took a quick look into the MetaFacts Technology User Profile research and discovered several challenges ahead for Amazon and others planning to follow suit, as well as some elements that show Amazon is in the right place at the right time with the right offering.

First of all, more Amazon shoppers alread use online cloud storage than non-shoppers. This means these consumers may be predisposed to cloud-based storage which is an advantage for Amazon. However, if the consumers currently using cloud storage are focused more on file backup and file/folder synchronization services, these don’t appear to be in Amazon’s initial offering.

Also, more Amazon shoppers use a portable MP3 player than online onsumers who don’t regularly shop on Amazon. While Apple’s iPod has the highest share among MP3 players, it’s share isn’t markedly different among Amazon’s shoppers than non-shoppers

In fact, Amazon’s shoppers are already active music-listeners, being well above average in music downloading and listening to streaming audio.

They are also more active using social networks, as well as sharing photos and videos through networks like Facebook, or through sites like HP Snapfish.

Meanwhile, among users of cloud storage services, Apple’s footprint is substantially higher than among non-cloud users. Further, users of cloud storage skew younger than Amazon’s current clientele. This could have the effect of drawing in younger customers to Amazon’s customer base, or may be ignored by Amazon’s relatively older and less cloud-savvy customers.

Cloud storage users have a higher share of Smartphone use than non-users, with higher shares for use of RIM Blackberry, Windows Phone, Apple iPhones and Android Smartphones.

Because most consumers may not know that Amazon has supported back-end cloud storage for many other technology firms, consumers are likely to raise concerns about Amazon’s experience and security capabilities.

Interested tech marketers and researchers may contact MetaFacts for licensing information.


The results in this TUPdate are drawn from the MetaFacts Technology User Profile Survey. Results specific to this topic can be obtained through customized report. Also, you may obtain the related MetaFacts Technology User Profile Overview Edition Report, which covers the broader range of key trends, by contacting MetaFacts. View findings in 25 pages of executive summary analysis, 200+ pages of charts and graphs, all supported by 95+ pages of detailed tables. The complete, 300+ page report is delivered to you electronically. This edition is for the U.S. based on the 2010 wave of Technology User Profile gathered among a scrupulously selected set of representative respondents, surveyed both online and offline.

To see other research coverage of Internet products and activities – from smartphones to feature phones, desktops to notebooks, social networking, demographics, and attitudes – see the many other questions TUP answers on www.technologyuser.com. Tech market research professionals who want a solid resource they can use immediately after industry events such as mergers, or even use prior to anticipated events, can license direct access to TUP.

About TUPdates

MetaFacts releases ongoing research on the market shifts and profiles for Smartphones, Netbooks, Mobile PCs, Workplace PCs, Home PCs, Web Creators, Broadband, and many other technology industry trends and facts. These TUPdates are short analytical articles in a series of specific topics utilizing the Technology User Profile Annual Edition study, which reveals the changing patterns of technology adoption around the world. Interested technology professionals can sign up at http://technologyuser.com/contact/ for complimentary TUPdates – periodic snapshots of technology markets.

About MetaFacts

MetaFacts, Inc. is a market research firm focusing exclusively on the technology industries. MetaFacts’ Technology User Profile (TUP) survey is the longest-running, large-scale comprehensive study of its kind, conducted continuously since 1983, the year before Apple released the Apple Macintosh. The detailed results are a primary market sizing and segmentation resource for leading companies providing consumer-oriented technology products and services, such as PCs, printers, software applications, peripherals, consumer electronics, mobile computing, and related services and products. TUP analyzes key trends and the data-rich source can be dived into more deeply for custom analysis. For more information about the syndicated research service, analysis tools, publications and datasets, contact MetaFacts at 1-760-635-4300.

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TUPdates: Average American Means PC Ownership , Internet Connection…Almost

Almost three-fifths of American households own a PC, and nearly all of those households have some kind of Internet connectivity. However, the rate of broadband Internet use is much lower-about 27 percent of American homes have such a connection, or 46 percent of PC owners. The flip side is that there are still tens of millions of Americans who have never owned a PC. Furthermore, some groups of Americans have less than half the adoption rate of other Americans.

Why is this important?

Anyone that believes that all Americans are home computer users with fast, broadband Internet connections are just barely a quarter right. More importantly, there is a persistent gap between the connected and disconnected, with some market segments having five times the adoption rate of others.

These are some of the insights culled from the latest research undertaken by MetaFacts, Inc., based on responses to questionnaires submitted by 32,130 U.S. households. The responses showed that about 58 percent of U.S. homes own a PC, representing 64.3 million households. The most likely to own a computer are the affluent empty nesters and older SINKs (single income no kids), whose rate is 25 percent higher than average. The least likely are the single heads of households who are 75 or older; whose rate is 40 percent less than average. But, interestingly, almost all other groups are within 15 percent of the norm for the general population.

The rate of Internet connectivity (of any kind) is 57 percent, or only one point lower than the rate of PC ownership. Apparently, if they are going to have a PC, they are going to connect it. In all groups the rate of Internet connectivity is within a few points of the rate of PC ownership.

However, the same cannot be said of broadband Internet connections. Only 27 percent of households have one (although this still amounts to almost 30 million subscribers) and the adoption rate varies considerably among various groups. Unsurprisingly, affluent, traditional families are the most likely to have a broadband Internet connection. In fact, they are 53 percent more likely than the average American household to have it. They are closely followed by affluent, young singles; affluent empty nesters and older SINKs; DINKs (double income no kids); working parents; and younger, mid-income empty nesters.

The least likely to have a broadband connection are single heads of households who are 75 or older. Their rate of connection is about a third of the average. Married heads of households who are 75 and older follow next, but are nearly half the average, as are single active seniors, plus middle-income older singles. The next tier are the married active seniors, who are connected at about three-fourths the average rate. Most of the other classifications clustered around the average.

Meanwhile, there are still pockets of resistance to the computer revolution, especially among the aged. Single heads of household who are more than 75 years old are twice as likely as average to report no PC usage. That might seem like a niche, but it’s still 2.7 million households. The next group that is least likely to use a PC are the married heads of households who are at least 75-but they are only about a third more likely than average to be non-users. Older, mid- to low-income singles and single active seniors are in that same tier as well. (The least likely to not use a PC are affluent singles, regardless of age.) The scattered resistance is enough to add up to 35 million households without a PC-a significant market, but since they are committed non-users the question is whether they are a viable market.

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