Flash Player installed on 98.7 percent of online computers
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As you can see from the graph bellow, the flash player plugin is the most installed item, it is even more popular than Java, Windows Media Player, Quick Time and others. (These stats are from 2007).

Flash player also became a standard plugin for streaming video online, sites like YouTube and Google video are only few of the many examples. Then flash player is also used in many dynamic ads, site animations, online games, navigation systems, they are created with Adobe Flash program, so in this case flash player is a plugin that everyone needs.
Flash has now become a part of most websites so a player becomes necessary
[…] Three main reasons: Adobe bought Macromedia in mid 2005, and has done a good job of getting their flash plug-in onto peoples computers. Adobe claims that 98.7% of browsers in use have the plug-in installed. This means pretty much everyone can view your flash banner ad. To run flash on your computer you need to have the plug-in installed. […]
What percent of users with Flash Installed have it Turned ON vs. Turned OFF?
These figures are not correct. Internet Explorer comes with an embedded Java Plugin. Therefore the percent of the Java Plugin is almost 100%.
Wow. Johannes, take off the Microsoft blinders. There is more (and better) in the world than Internet Explorer.
Johannes - recall that not everyone is using Internet Explorer. Browsers such as Fire Fox have become mainstream for many people.