The Wild & Wacky World Of Internet Business

Internet Revenue

Advertising ISPs currently generate highest revenueTop 10 ISPs account for 75% of subscribersISP market volatile; price a major consideration

TOP ISPsISP subscribers in

millions% of market

1 Comcast 12.9 13.90%2 AT&T 12.1 12.10%3 America Online 12 9%4 Verizon 7 7.40%5 Road Runner 6.9 7.30%6 EarthLink 5.3 5.60%7 Charter 2.4 2.50%8 United Online 2.3 2.40%9 Qwest 2.1 2.30%

10 Cablevision 2 2.10%

TOTAL U.S. 86

Portals

Entry points to Web

Strong competition to be “Home Page”

Portals generate high ad revenue

Search Engine

Email News Finance Maps

Google47%

Yahoo42%

Yahoo Yahoo Mapquest

Yahoo16%

MSN23%

Google (5th)

MSN Yahoo

MSN12%

MySpace20%

Google (40th)

Google

ADVERTISING REVENUE

1994: development of html led to first boom in e-commerceBoom created dot-com millionaires, fueled by venture capitalFaltering economy in 2000 leD to dot-com bustRecovery began in 2002; growth now mostly steady

MSM Ad Revenue

Newspapers 47.335 bn

Television 44.293 bn

Cable TV 23.654 bn

Radio 19.640 bn

Magazines 12.847 bn

INTERNET AD REVENUE

Banner ads

Hit counts

Search ads (largest revenue)

Video & audio ads growing

Net top 10, in millions of visitors/month

Microsoft 501.7

Google 475.5

Yahoo 475.2

eBay 250.8

Time Warner 221.8

Wikipedia 171.9

Amazon 143.9

Fox Interactive 130.4

Ask Network 110.9

YouTube 107.9

Top 10 page views, in billions

Yahoo 345.5

MySpace 250.7

Google 147.7

eBay 143.3

MSN/Windows Live 141.2

AOL 73.1

Craigslist 27.1

Nickelodeon 24.7

Comcast 23.5

Microsoft 23.2

Mainstream Media & Net

Most mainstream outlets not making much money on Net offerings

Still, feel compelled to have a presence, even at a loss

Considered investment for future

IMPACT ON MSM

Traffic to individual non-MSM sites may be smaller

But cumulative effect of Web as a whole is substantial

Public Sphere Concerns

Digital divide

SES (socioeconomic status)

Education

NET NEUTRALITY IS KEY