Total Online Households in the U.S. to Reach 35 Million by the Year 2000;
Surge in Growth on the Proprietary Networks and the Web

New York is Driven by the unparalleled growth in subscriber numbers of
America Online and heightened consumer interest in the World Wide We. A
new report by Jupiter Communications estimates that from a base of 9.6
million online households in the U.S. in 1995, the consumer online
services industry is set to grow to 35.2 million households by the year
2000-or 34 percent of all households in the U.S.

THE 1996 CONSUMER ONLINE SERVICES REPORT, published this month, estimates
that industry revenues, which totaled $2.2 billion in 1995, are expected
to reach $14.2 billion by the year 2000. Revenue growth is the result of
the increasing number of paid subscriptions to consumer online services
and Web sites, revenues from online advertising, and revenues from
transactions. America Online led the charge in 1995, accounting for 66
percent of all new consumer online service subscriptions. Other market
competitors, such as CompuServe, Prodigy, and new market entrant Microsoft
Network, grew steadily but could not match pace with AOL.

"Predictions of imminent doom for the proprietary services were obviously
premature," said Adam Schoenfeld, vice president of Jupiter
Communications. "The definition of what a consumer online service is has
changed dramatically, and now encompasses Web-based services, the
traditional onlines, and the new access options. This change will
accelerate, and the Web will continue to be the dominant platform, but the
number of online households will continue to grow at a breakneck pace
through 2000."

Jupiter Communications is a new media research, publishing and consulting
firm. Other recent research reports include THE 1996 ONLINE ADVERTISING
REPORT and THE 1996 HOME BANKING REPORT. Jupiter newsletters include
INTERACTIVE CONTENT, ONLINE MARKETPLACE, and THE INTERNET BUSINESS REPORT.
Jupiter's GLOBAL ONLINE SUMMIT conference will be held in Paris, June 4-6.
The 380-page report is available for purchase from Jupiter Communications
for $1,895.

For more information, contact Jupiter at 627 Broadway, New York, NY 10012.
Phone: 212-780-6060 or 800- 488-4345. Fax: 212-780-6075. Email:
jupiter@jup.com. Web site: http://www.jup.com.

Contact: Heather Gore, The Terpin Group
Voice: 310-821-6100
Email: hgore@terpin.com

Contact: Marc Harrison, Jupiter Communications
Voice: 212-780-6060 x106
 
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