Global - Online business models

Telecom Investment Research Note

Synposis

After a decade of Internet media we still haven’t cracked the business model – how best to make money from Internet-based content. There doesn’t seem to be a quick fix to the problem. Investors are starting to become worried about this, as they watch the various digital media companies, fixed and mobile telecoms companies, and the Internet media companies being affected by this. While advertising is currently the most utilised revenue source, this market also is limited in how far it can go in supporting the industry.

It is far more likely that totally new business models will need to be developed in order to monetise the various digital media developments. New broadband-based developments that provide open access models allow for totally new businesses to be developed parallel to the ‘free’ Internet. In such models the costs of infrastructure and services can be embedded in the end product, similar to current media models, where no additional charge is made for paper or for radio or broadcast access.

Permission-based models, where customers indicate what commercial (advertising, marketing) services they require, are another option.

 

Table of Contents

  • 1. Synposis
  • 2. Still searching for the solution
  • 3. Move from ARPU to Penetration
  • 4. Permission based marketing
  • 5. Social network evolution
  • 6. Background Information:
    • 6.1 Advertising and Marketing
    • 6.2 Digital Media – impact on the media Industry
    • 6.3 Internet and Entertainment Services
    • 6.4 Social Media Networks, Online Gaming & Virtual Worlds
    • 6.5 Google and leading Internet Media Companies
    • Table 1 – Worldwide advertising spend versus online advertising spend – 2009 - 2010
    • Table 2 – Most popular formats for receiving news in the USA – 2010
    • Table 3 – Visitors to top ten web properties worldwide – 2008 - 2009
    • Table 4 – Time spent on social networks by top countries – 2009 - 2010

Related Reports

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Technologies

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Number of pages 7

Status Archived

Last updated 25 Aug 2010

Analyst: Kylie Wansink

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