New report indicates one-third of US homes will have broadband by 2005.

In its latest report, Broadband Worldwide, eMarketer estimates broadband will be in over one-fifth (22%) of US homes this year. At such a critical mass, the online content sector is well advised to take advantage of the market.

While Internet penetration has already reached 59% of US households, broadband will be in over one-fifth (22%) of US homes this year, rising to one-third (32.2%) by 2005, according to eMarketer's new Broadband Worldwide report. "If that isn't a big enough audience to sustain an innovative online content sector, I don't know what is," says Senior Analyst Ben Macklin. So where is this content sector?

"Still gun-shy from the dot-com crash and continuing economic uncertainty, telecom, media and marketing companies are understandably hesitant to fully embrace the broadband concept," says Macklin. "The countries and companies that realize the full potential of widespread broadband will surge ahead in the next decade. It's now time to take the Net to the next level."

eMarketer projects broadband households worldwide will grow from 57 million in 2002 to 154 million households in 2005, posting a compound annual growth rate (CAGR) of 39%.

"We're going to see home users take advantage of applications that move beyond the PC and Web browsers," says Macklin. "Microsoft's Xbox game system is a good example. It uses a high-speed connection to combine entertainment with communication among its users. Meanwhile, AOL has committed $35 million to a branding campaign for broadband, and it is finally focusing on delivering the content that can drive broadband subscriptions."