ON-LINE SERVICES GROWING
By Adnews Staff
The number of consumer on-line subscribers grew 31% in the first half of 1995, according to a U.S. survey, called The Consumer Market for On-line Services. It was conducted by market research firm Find/SVP of New York. There are about 8.2 million consumer on-line subscription in 7 million U.S. households. In 1994, subscriptions grew 39%. 1994 revenue for consumer on-line services were between $800 million(US) and $900 million, and this is expected to exceed $1.2 billion this year. A lot of subscribers sign on, but then drop their subscription quickly. This churn rate averages 40% to 50% each year. In addition, the services have to spend between $20 and $40 to get each new user. Find/SVP analyzed customers' perceptions of current on-line services, as well as new service features customers would be willing to pay monthly subscription fees to receive.