The Battle Between the Sin Sites
Although online porn sites continue to be the hot paid Internet content services in the U.S. and western Europe, online gambling is gaining ground among users willing to part with money for a visit. Porn sites (more politely referred to as "adult sites") generated--rather appropriately--69 percent of online paid site revenues in 1998, which will probably drop to 58 percent in by 2003, according to a CNN article quoting Datamonitor research. (Datamonitor analysts valued the market at $1.4 billion in 1998, likely exceeding $5.4 billion by 2003.) Online gaming, however, is predicted to increase from a miniscule 4 percent of revenue generated in 1998 to 13 percent by 2003. Spurring the increase will be online gaming sites that develop "premium zones" that provide superior customer service, community centers and related content. "Many of these game sites don't actually yet charge for the content," a Datamonitor analyst said, adding that adult content dominates because it uses current technology to deliver its services, as well as providing the most services. Another factor, according to a Jupiter Research analyst, "The adult content market historically has always been a leader in new media."
Asian Internet Statistics
Global Reach Express recently condensed several studies about Asian Internet usage. Among the findings
they listed were:
- There are 18.0 million Chinese speaking Internet users around the globe, which represents 5.4 percent of the total online population.
- Internet usage in China saw a dramatic 324 percent increase during 1999, reaching about 9 million users. This represents, however, a very small portion of China's estimated 1 billion people.
- By 2001, Chinese Internet users will spend about $17.9 billion for online purchases. B2B commerce,
rather than B2C commerce, will generate the majority of e-commerce.
Dot Com Investment Crashing?
The hot dot com market seems to be losing investors practically faster than a sieve loses water. The Mirror reports that instead of investing in Internet businesses, individual investors are saving for retirement. An American Express survey of 11,000 people in Europe, North and South America and the Far East highlighted investors' concerns. Twenty-seven percent of U.K. investors, for example, said they were less likely to invest in the stock market than last year. One investment expert, however, pooh-poohed investors' concerns, saying that so long as investors spread their risks, investing in high-tech companies remained a safe bet.
The Rise of Interactive TV
By 2005 it's estimated that more than 14 million U.S. households will be iTV-capable and active, according to a study by The Strategis Group. Fueling this growth will be consumer demand for interactive services, such as Video on Demand (VoD) and television-based commerce (T-commerce). Another spur driving iTV's growth comes from cable, digital broadcast satellite (DBS) and digital broadcast operators' desire to tap new revenue sources. According to Strategis, 24 percent of consumers are very interested in VoD, while another 12 percent are very interested in T-commerce. Analysts there say that the survey shows consumers' interest have yet to be piqued because iTV has yet to demonstrate it's value.
"As operators continue to upgrade their networks to digital and interactive capability, and content
providers prepare for widespread deployment of interactive products and services, the pieces are being put
in place to take iTV mainstream in the coming years," said Keith Kennebeck, an analyst with The Strategis
Group. "iTV has the potential to revolutionize the way we use our televisions - we'll be able to order products, access information, get movies and chat with friends with the click of a remote."
www.strategisgroup.com
Internet Security Software Market Growth Foreseen
Security isn't just for insurance purposes anymore, say IDC forecasters. Instead, companies need security
solutions to increase profitability by expanding trusted relationships with their customers, partners, suppliers and channels. This need is driving the industry to undergo substantial growth, from earning less than $4 billion in 1999 to more than $11 billion in 2004. "The ability to use security technologies to enable greater access to corporate content deepens and stabilizes relationships," an IDC analyst said. "These trusted relationships yield numerous benefits, including, most importantly, increased revenue and profitability." According to the IDC report on security software, Internet Security Software Market Forecast and Analysis, 2000-2004, the biggest growth area for the market will probably be in security authentication, authorization, and administration (3A) software.
www.idc.com