According to Yankee Group research, historically, limited availability and pent-up demand from millions of online consumers ready to spend more for faster internet access and always-on service have driven the demand for broadband. As broadband has become more accessible and subscription has grown, content and applications, ranging from audio and video streaming to online gaming, are playing an increasingly important role in expanding the market.
In the past year, residential broadband overtook dialup. At the end of 2004, there were 29.6 million residential broadband households in the United States, accounting for nearly 40 percent of online households. By the end of 2005, Yankee Group estimates there will be 40.1 million US residential broadband households, accounting for 52 percent of online households. By the end of 2010, there will be 69.4 million broadband residential households.