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CNW: In-Car Internet Access Could Explode If Price Is Right

26 May 2000

CNW: In-Car Internet Access Could Explode If Price Is Right

    BANDON, Ore., May 25 A national study of consumer interest
in web-access equipment in new vehicles found demand is extremely price
sensitive.
    At $5 per month, 48 percent of the 5,126 respondents said they would be
interested in having Internet access in their vehicle.  At $25 per month, the
rate collapses to less than 15 percent.  And if the service costs more than
$25, interest dwindles to 8 percent, according to CNW Marketing Research.
    Art Spinella, CNW's vice president said, "While the auto industry is
intent on including some form of Internet access in their vehicles, it is
clear consumers are less than enthusiastic at certain price points, regardless
of how good the service or content."
    The Oregon-based research company forecasts that eventually more than
3.5 million new vehicles annually will be fitted with Internet-access hardware
within five years.  More than half of those, however, will be in
business-fleet and company vehicles, not general consumer cars and trucks, the
company says.
    The results were part of a larger national study of vehicles and the
Internet.

                      Over $25  $25        $20      $15       $10       $5
    Favor              8.3%     14.7%      23.1%    32.1%    37.5%    48.3%
    Oppose            68.2%     47.9%      26.9%    19.7%    16.1%     9.4%
    Don't Know        23.5%     37.4%      50.0%    48.2%    46.4%    42.3%