Can broadband save Internet media?

Can broadband save Internet media?

“Don’t bet on it. More viewers and more pages viewed won’t be enough to save broken business models.”

The McKinsey Quarterly, 2002 Number 2

Main conclusions:

• There is a widespread misplaced optimism that broadband will attract enough viewers to websites and thus generate enough page views to make the CPM-based model profitable (CPM: cost per thousand user views);
• The widespread adoption of broadband may, however, have a positive outcome: increased usage is beginning to permit the development of new business models;
• McKinsey then introduces three possible new business models:
  • First business model: Selling and delivering noninteractive digital entertainment
  • Second business model: Expanding the market for fee-based on-line gaming
  • Third business model: Marketing off-line entertainment
• Connectivity, technology and user behaviour will evolve;
• Eventually, easy-to-use home networks will create an enhanced delivery platform for content and games.

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• Related thinking:
  • What do broadband consumers want?(2001 Number 4 Web exclusive)
  • What went wrong for on-line media?(2001 Number 4 Web exclusive)
• For further information, contact ;
• EURACTIV:LinksDossier on broadband;
• Recent story on telecoms:ECommission launches e-business w@tchdog(8 May 2002)