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Premiere Research Study Finds Broadband Internet Connection and Home Networking Are Critical Components of the Digital Home The digital home of the technology early adopter is a place where the Internet connection is almost as important as the water connection, concluded the Consumer Electronics Association (CEA) and CNET (www.cnet.com) based on a new Digital Home consumer research study. CNET, the trusted resource dedicated to helping consumers buy and use personal technology and a property of CNET Networks Inc. (Nasdaq:CNET), and CEA, the preeminent trade association promoting growth in the consumer technology industry, formed a research partnership last year to gain insights into the future of many consumer electronics technologies. Now, the two organizations have formed a new panel called the CEA|CNET Tech First Panel to reveal the habits of early technology adopters. The premiere CEA|CNET Tech First Panel study focused on the digital home. The study was administered via the Internet to an online sample of CNET users who were screened as people who adopt consumer electronics products in the early to mid-product life cycle stages. The panel sheds light on the demographics and preferences of early adopters, in this case their insights on the digital home. "Through the CEA|CNET Tech First Panel, we have access to early adopters - a critical industry audience, because their interests and behaviors are often precursors to future mass market trends," said CEA Director of Research Joseph Bates. "In the Digital Home Study we found that these consumers spent an average of $2,441 in the past year on consumer electronics products, which is nearly two times the national household average. We also found they are most likely to purchase these products at general consumer electronics retailers - the so-called big box stores. Nearly three-quarters of the group surveyed had purchased a product at a major CE retailer in the past 12 months. Finally, respondents indicated they tend to install and set-up products themselves." "We're extremely pleased that CNET is able to provide the industry with the insights of the early adopter population through the CEA|CNET Tech First Panel and to be working with the CEA to do so. This panel is an important subset of CNET's broader audience because their actions help us understand what may lie ahead for general consumers," said Candice Meyers, senior vice president of CNET. "This Digital Home Study gives us a blueprint of sorts for the future of technology in the home." The premiere Tech First Panel study delved deep into this key CE constituency's views on the digital home, and found that they spend nearly two times the national average on consumer electronics products and are disproportionately male, younger and better-educated compared to the overall population. As expected, the digital home demonstrates elevated levels of technology ownership compared to the average U.S. household, but while the digital home may have more CE products than average, a handful of technologies comprise the real framework of the digital home. The Digital Home Study also found that early adopters do a lot of CE research and shopping online, as well. Seventy-two percent responded that they had made a purchase from an online merchant in the past year and some 5 percent said they buy exclusively from online retailers. Virtually all (99 percent) of this group use the Internet to research new CE products and 69 percent visit retail stores to investigate products in person. Underscoring the need for product manufacturers to create buzz around a new product launch, about half (48 percent) of early tech adopters ask someone they know about the product. By comparison, only 29 percent look to ad circulars for product info. "For the digital home of today, a broadband Internet connection and home network are critically important, serving as the foundation of the digital home," continued Bates. "Within that house, we find that computers, HDTVs and security and lighting controls are the 'bricks' for early adopters. In fact, among the respondents who do not own the technology, HDTV and a home network scored the highest for ownership interest, which demonstrates their importance to the digital home." Seventy-three percent of early adopters operate a home network, according to the Digital Home Study, and almost all have a high-speed Internet connection. The network, which can be wired or wireless in the early adopter household, does much more than connect computers in the digital home. In fact, both the home network and computers are used by early adopters for entertainment purposes - the network is used to connect various audio and video devices throughout the home and the computers in the digital home are used to listen to music, play games and view digital pictures. CEA|CNET Tech First panelists own on average two computers and 1.25 notebook PCs per household. The study also measured ownership and interest in technologies such as lighting and HVAC controls and home security systems. Results showed that digital home technologies typically are clustered, so a house with a home security system, for instance, is twice as likely to have automatic exterior lighting controls or automatic sprinklers. Early adopters expressed interest in future home technologies that can be built into their digital domains, as well. Many study participants indicated they would like to own products like self-cleaning toilets, moisture sensing lawn sprinklers and dishwashers that put away the dishes automatically. "As technology early adopters of today continue to build-out the digital home, the industry needs to stay informed," Bates concluded. "That's one of the objectives of the CEA|CNET Tech First Panel research and we're looking forward to studying future survey results." The CEA|CNET Tech First Panel: Digital Home Study was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research, international research and historical trends for the consumer electronics industry. The study was completed in September 2005. The complete study is available to CEA member companies only. About CEA (www.CE.org) The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $121 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry. CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy. About CNET (www.cnet.com) CNET (www.cnet.com), a property of CNET Networks, Inc., is dedicated to helping people buy and use personal technology to enhance and enrich their lives. CNET's award winning editorial staff reviews thousands of products each year, providing expert and unbiased advice on what products to buy. The site also offers help and how-to features enhanced with video content that visually shows consumers how to get the most out of technology once they own it. And, with an extensive directory of more than 400,000 products and price comparisons, CNET also gives consumers the most up-to-date and efficient shopping resource on the Web. About CNET Networks (www.cnetworks.com) CNET Networks, Inc. is a worldwide media company and creator of content environments for the interactive age. CNET Networks takes pride in being "a different kind of media company," creating richer, deeper interactive experiences by combining the wisdom and passion of users, marketers and its own expert editors. CNET Networks' leading brands -- such as CNET, GameSpot, MP3.com, Webshots, and ZDNet -- focus on the personal technology, entertainment, and business technology categories. The company has a strong presence in the US, Asia and Europe.