Archive for May 2002

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[eccr] Can broadband save Internet media?

Fri May 10 07:37:53 GMT 2002


Title: Can broadband save Internet media?


Can broadband save Internet media?


The Internet-media faithful cling to the hope that rising broadband penetration rates will revive advertising-based on-line business models. In no sector does this hope stand a better chance of realization than in on-line entertainment, which benefits most from the widespread adoption of broadband. Yet a study of 20 on-line entertainment categories shows that increases in page views and in the amount of time users spend on-line won¹t generate a big jump in advertising revenue.
 
The take-away
Broadband won¹t save most ad-based business models, but all isn't lost for Internet media. Increases in usage could make it possible to develop new business models‹business models that don't rely on advertising.
 
Source: http://www.mckinseyquarterly.com/article_abstract.asp?ar=1189&L2=17&L3=104&srid=27
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