1. Adoption of New Media Supplementary Material for Chapter 1 in When Media Are New Copyright 2010, John Carey and Martin C.J. Elton

2. Average Annual U.S. Household Expenses Selected Expenditures Type of ExpenseAverage Annual Spending ($) Food at Home3,465 Health Care2,853 Entertainment2,698 Food Away From Home2,668 Gasoline and Motor Oil2,384 Utilities (gas, electricity, water)2,217 Clothing1,881 Telephone1,110 Source: US Dept of Commerce, Statistical Abstract of the US, 2010 (data are projections for 2010)

3. Television $ 407 1,607 Home Video106 59 Consumer Books110108 Videogames75125 Internet Content67*197 Recorded Music43184 Newspapers44155 Magazines44124 Movie Attendance39 12 Mobile Phone Content 27 NA Media Spending and Hours of Use Consumer Spending Hours of Use Per Person Per Year Source: US Dept of Commerce, Statistical Abstract of the U.S. 2010 (data are projections for 2010) * Does not include video

4. Historical Patterns

6. Rogers’ Categorization of Adopters Source: Rogers Innovators Early Adopters Early Majority Late Majority Laggards

7. Average Price of Selected Electronic Products RadioB&W TVColor TVVCRCDDVD 1925$ 83 1930 78 1935 55 1940 38 1947 40 $ 279 1950 190 1955 138 $ 500 1960 132 392 1965 356 1970 317 1975 341$ 1,140 1980 1,122 1983 572 $ 733 1985 494 310 1989 382 218 1993 180 1997$ 760 1999 360 2001 210 2003 145 Source: Sterling and Haight; Carey, EIA. In Current Dollars

8. Average Price of Selected Electronic Products RadioB&W TVColor TVVCRCDDVD 19291.8* 1930 1935 1940 19475.3 19503.3 19551.8*6.6 19604.1 19653.1 19701.9* 19756.2 19803.3 19831.41.8 19851.1*0.7 19930.2* 19970.8 20010.2 20030.1* in Weekly Household Income *The point at which each of these technologies entered half of US households Note: successive rows do not advance by a constant number of years

10. Average Price Of Fax Machines Dollars Sources: Dataquest; US Dept of Commerce; CEA $185 $4,429

11. Average Price Of Home Computers Dollars Sources: Dataquest; US Dept of Commerce

12. Pricing of Telephone Service New York to Chicago - 3 Minute Call (Current Dollars) Source: Historical Statistics of the U.S.; FCC

13. Price Dropped Over TimePrice Did Not Drop Over Time Long Distance TelephoneCable TV Dial-Up OnlineSatellite TV Broadband DSLSatellite Radio Mobile Phone ServiceVideo-on-Demand DVR Service Services Where The Price Dropped or Did Not Drop Over Time

14. S-Curve Pattern of Adoption Time

15. Sources: Sterling and Haight; US Dept of Commerce; Cable Growth, 1950 – 2005 Percent of TV Households Subscribing to Cable Year

16. Enhancements vs New Services

17. APPLICATION OR EXPERIENCE TECHNOLOGY IN HOME OR OFFICE Already In PlaceNew Enhanced Software UpdateColor TV Touchtone Telephone New Automated Voice Services Streaming Audio/Video on Web Videotex* Interactive TV Pre-recorded Videocassettes New/Existing Technologies for New/Enhanced Applications * Videotex is a generic term for an important family of online services before the Web.

18. Replacement Cycles For Electronic Products Product Average Life Cycle Cordless Telephone 8 Years Color TV 8 DVD Player 7 CD Player 6 Telephone Answering Machine 6 Camcorder 5 Fax 4 Digital Camera 3 Personal Computer 2 Mobile Phone 1 Source: Appliance Magazine

19. Number of Years to Reach 50% Penetration of U.S. Households Source: Sterling and Haight; US Dept. of Commerce Newspapers100+ Telephone 70 Phonograph 55 Cable Television 39 FM Radio 30 Color Television 17 Personal Computer 17 Cell Phone 16 VCR 10 CD Player 10 AM Radio 9 Black & White Television 8 DVD 6

20. Advantages and Pitfalls of Being First

21. “First In” Strategy...  AM Radio  HBO  Broadcast Networks

22. But…  HDTV in Japan  Early Videoconferencing  1950s Pay TV (Zenith)  Early DBS

24. Killers Apps versus Confluence

25. Share of Radio Audience Source: Statistical Research Inc. FM Radio % of Audience AM Radio

26. Technology Push versus User Demand

27. Transitions As Standards Change Shipment of Recorded Media LPs Cassettes CDs Millions of Units Source: Recording Industry Association Download Single Mobile Song Download Album

28. Demographics and Adoption

29. U. S. Population 1950 - 2010 Millions Source: U.S. Census Bureau

30. Mobility : Percentage of U.S. Households That Move Each Year Source: U.S. Department of Labor

31. Average Household Size Sources: Historical Statistics of the US; American Demographics

32. Percentage of U.S. Population 65 or Older: Actual and Projected Source: US Census Bureau

33. U.S. Population – Languages Spoken People who speak a language other than English at home - 2007 English Only 80% Other Language 20% Source: U. S. Census Bureau

34. Other Patterns….. Failures Fads Cyclical Technologies Replacement Piggybacking False Starts

35. VCR Market Share VHSBeta Source: Klopfenstein

36. Desktop vs. Laptop Computer Sales Desktop Laptop Source: Appliance Magazine

37. Obsolescence

39. Sales of VCR Decks Thousands of Units Source: Appliance

40. Product Development Mortality “Of the 30,000 new consumer products launched each year, over 90% of them fail.” The Wall Street Journal

41. Subsidies – When First Launched PS3 MSRPSony Cost to Build Subsidy by Sony $499$806$307 Xbox ’05 MSRPMicrosoft Cost to Build Subsidy by Microsoft $399$525$126 Source: Financial Times

42. Videogame Console Hardware & Software Sales, 1980 to 2009 Source: NPD Group, cited in the NY Times, WSJ and Video Business Billions of Dollars

43. Trojan Horse Strategy