Lessons Learned From Tech Adoption Curves
Leichtman Draws Conclusions From DVR, HDTV and Broadband Growth This Decade

by MCN Staff
Multichannel News

12/22/2009 2:03:31 PM

http://www.multichannel.com/article/441541-Lessons_Learned_From_Tech_Adoption_Curves.php


Since 2000, DVR adoption has grown from sub 1% to nearly 40%, HDTV sets 
are in about half of U.S. households from less than 1% and broadband has 
risen from 1% of homes to about 68% of them, researcher Bruce Leichtman 
noted, drawing lessons from the growth curves.

Lessons about these adoptions drawn by Durham, N.H.-based Leichtman 
Research Group's principal analyst include:

-- Adoption and ongoing growth are frequently led by those with higher 
incomes. For example: about 37% of households with annual income of less 
than $30,000 have broadband subscriptions. In households with north of 
$75,000 in annual income, the broadband penetration is 89%. For DVRs, 
the numbers are 16% and 54%. For HDTVs, the penetration levels are 29% 
and 61%. The numbers come in between those poles in homes with household 
income levels between $30,000 and $75,000.

-- Product appeal is not enough: changes in the marketplace, bundling 
and product delivery are often key. HDTV sets took off in the second 
half of the decade driven by set price reductions and the digital 
broadcast transition. DVR adoption took off after the technology was 
bundled into satellite and cable set-tops.

-- New products and services take time to grow, and growth is rarely 
linear. Early growth can be slow, but can ramp up steeply once "an ideal 
confluence of availability, marketing and marketplace conditions is 
achieved," according to Leichtman.

LRG's new research (from a survey of 1,300 U.S. households) indicates 
46% of U.S. households have at least one HDTV set, double the percentage 
that had an HDTV set two years ago.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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