Cisco CLUE Part 2: Home is where the heart (and broadband) are…
The At Home portion of the CLUE Index grew 7.56 points, from the baseline 100 index points value (based on 2008 global service adoption data) to 107.56 index (based on 2009 global service adoption data). “That’s great, you may be saying, but what does this really mean, Webster, besides a fun field trip with index numbers?” you may be asking…and good question. The bottom line is that for all the attention on the residential market, this segment demonstrated the smallest growth (compared to At Work [+14.17] and On the Move [+19.45]). As global consumers have collectively tightened their belts during the global economic recession, we believe this comparatively modest increase reflects residential consumers’ careful spending of their disposable household incomes. Here’s a graphic summary of residential services global growth:
We tracked global penetration of the following residential services as part of our CLUE research:
- Consumer instant messaging: fixed-line instant messaging for consumers
- Consumer VoIP: including both Internet VoIP (e.g., Skype), and dedicated VoIP subscriptions from a broadband service provider or an independent VoIP service provider (e.g., Vonage)
- Online gaming: games either downloaded from or played over the Internet, including Internet-connected console gaming
- Online music: songs or music tracks downloaded from or streamed over the Internet
- Online video: video downloaded from or streamed over the Internet
- Social media: social networking (e.g., Facebook or MySpace) and blogging
- Next-generation TV: multichannel television including cable TV, Internet Protocol Television (IPTV), satellite TV, and paid digital terrestrial TV.
- Time-delayed TV: personal video recorders (PVRs) or digital video recorders (DVRs) that allow recording of TV content to be viewed at a user’s discretion, using a next-generation TV service
- VoD: on-demand video programming that is streamed or downloaded through a TV set-top box, using a next-generation TV service
Here’s how those services ranked and grew from our initial CLUE report in March 2010:
|At Home||2008||2009||Index Value Change||Percentage Change|
|Consumer instant messaging||14.33||15.06||0.73||5.1%|
|Video on demand||2.45||3.10||0.65||26.7%|
The increased availability of broadband access is having an impact on the residential services landscape. In 2008, there were approximately 0.8 households with TV sets for every 1 global Internet user. This ratio has decreased to 0.7 households per global Internet user in 2009. This helps to explain how social media, online video and consumer instant messaging earned the top service rankings with the At Home category. Service providers have taken notice of this trend and have responded with a variety of innovative services – here are just a few examples.
- Virgin Media Next-Generation Access Strategy
- BSkyB’s Multi-Screen TV Services
- Telecom Italia-Virgilio Portal Strategy
You can read more about our residential CLUE findings and see more innovative service examples in the complete report. You can also find out the relative rankings of these per region. For example, did you know that Latin America ranked the highest in social media adoption?
If you’d like to learn more about the devices and services that are shaping the Connected Life for consumers around the world, check out our interactive My CLUE video.
And please come back tomorrow, when we’ll take a look at the business services portion of the CLUE study.