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African Americans Fuel Broadband Growth

SEPTEMBER 5, 2006

High-speed Internet penetration will approach 50%.

By Debra Aho Williamson - Senior Analyst

FBLI
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Internet penetration among urban African Americans could grow from 45% to 62%, according to the new "FOCUS: African-America" study by Horowitz Associates. The study also projects strong growth in high-speed Internet penetration in this segment, from the current 28% to 46%.

The study involved interviews with 500 African-American heads of households about their current and planned future usage of the Internet and other media technologies.

eMarketer estimates that 50.2% of African Americans go online, and projects that this will rise to 56.6% in 2010.

US Internet Users, by Race/Ethnicity, 2005-2010 (% of total population ages 3+ within each group)

Other studies also indicate that African Americans are strong customers of broadband. According to a May 2006 report issued by the Pew Internet & American Life Project, 42% of American adults had a high-speed connection at home as of March 2006, up from 30% the previous year. African Americans are among the groups pushing that figure higher; the number of African Americans with a broadband Internet connection grew by 121% between 2005 and 2006, the report stated.

Demographic Profile of US Home Broadband Users, 2005 & 2006 (% of respondents in each group and % increase vs. prior year)

The Horowitz study also reports that urban African Americans pay more for cable, digital cable or satellite service. For example, urban African Americans pay $63.70 per month for satellite service, compared with an average of $58.73 for all urban satellite customers.

A study by the American Consumer Institute of technologies used by US adults found that a similar percentage of African Americans and white Americans subscribe to a pay-TV service. However, African Americans are more likely to subscribe to premium channels and pay-per-view.

Use of Select Technologies among US Adults, by Race/Ethnicity, January 2006 (% of respondents)

For more on the African-American online market, read eMarketer's African Americans Online: Crossing the Digital Divide report. 

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