ELC 498 ELC 498 ELC 498 ELC 498

Day 8Day 8

DAY 8 Agenda• Today October 3

– Tellme Networks, Inc. – Anup– Recap of Online Portals– Midterm exam Posted in WebCT

• Due Oct 13 at 11AM– Return completed grade sheets before midnight OCT 5

• October 6– Intro to Online Content Providers -Tony– Boston.com - Steve

• October 10 is Fall Break• October 13

– Midterm Exam Due– CNET 2000 - Jeff

• October 17– BET.com – Donnie

• October 20– BMG Entertainment - Kristin– Recap of Online Content Providers– Intro to Online retailers

• October 24 – Staples.com -Anup

Case study• Taken

– iVillage Kristin– Monster Donnie– Napster Jeff– Paypal – Steve– Ebay – Anup

• 0ther possible– Craig's List– Google– NetZero– EarthLink– Epionons.com

INTERNET BUSINESS MODELS

• ACCESS PROVIDERS• PORTALS

– StarMedia; Yahoo!; Tellme

• CONTENT PROVIDERS• RETAILERS • BROKERS• MARKET MAKERS

Issues Facing Portals

• Payoff from vertical integration • Viability of competing models

– Free access (NetZero; AltaVista)– Better navigation (GoTo.com; Google; AskJeeves;

About.com)– Destination sites usurping portal functionality

• Maturation of the user and advertiser bases• Portal disintermediation of commerce sites• Broadband discontinuity

GBF??

– Winner takes all?• Network effects• Economies of scale• Customer retention rates

– Competitive risks– Customer life time value analysis– Funding analysis

Critical Factors• Low barrier to entry• Reliance on third party providers• Inability to differentiate offerings

– Commoditization?

• End results– Merger and consolidations– Winner take ALL!– Or ??