Despite bad publicity of networking bottlenecks and failed online ventures, American consumers continued their headlong rush into cyberspace in 1996, as 6.8 million more households signed up for online services and the Internet, according to the latest quarterly census by Information & Interactive Services Report. As of Dec. 31, there were 18.1 million subscribers the census found, versus 11.3 million at the end of 1995 and 6.3 million at the end of 1994.

"An astounding average of 33,000 people a day joined an online or Internet service during the fourth quarter," said IISR Editor Rod Kuckro, noting the rate was more than double the average daily sign-up rate of the same quarter a year earlier. "If current rates are maintained, another 12 million households will be online by the end of 1997. But such growth is likely to depend on an expansion of each service's foreign subscriber base, as consumer computer sales in the United States have been slowing. Growth will also depend on amending of the industry's tainted image over service lapses and reliability," Kuckro said.

The lines between dedicated online services such as America Online and new services from the major long-distance companies and regional Bell operating companies continued to blur in 1996 as service options and downward price pressure compelled more households to go online.

The most recent census also reflects the emergence of several new categories of providers, including cable modem services, free e-mail services and online gaming companies, although these emerging services (with a combined base of 2.2 million) were not included in the census total.

1996 saw the demise of several consumer services, including CompuServe's WOW!, America Online's GNN, Apple Computer Inc.'s eWorld, Pipeline USA, and Imagination Network but there was emergence of regional and nationwide Internet Service Providers intent upon providing limited content to stay competitive with AOL, CompuServe, Microsoft Network and Prodigy.

The IISR quarterly census of selected leading consumer-oriented online and Internet services details the number of users and growth from October 1 to December 31, 1996, of 38 electronic services, including 27 consumer online and Internet service providers, six cable modem services, three free e-mail services and two online games companies. Covering online services and interactivity for more than 17 years, IISR, based in Washington, D.C., is published weekly by Telecommunications Reports International Inc..