| | |
| Summary |
| Please note: The McKinsey Quarterly has agreed to a special arrangement for CEOExpress members that allows member access to their articles. Articles must be clicked on directly through the links below to gain access to this group of articles.
|
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 won’t generate a big jump in advertising revenue.
The take-away: Broadband won’t 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.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
|
|
|
