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Operators’ and Media Companies’ Survival Depends on Monetizing Web 2.0, Says In-Stat


SCOTTSDALE, Ariz. – An increasing range of companies are seeing their business models erode as communication services, information and entertainment content shifts to the Internet. For many telecom service providers and media companies, organizational survival is at stake, according to In-Stat’s (http://www.in-stat.com) newest research, “Monetizing the Internet: Using Web 2.0 Business Models.”

Organizations must do more than simply adding functions, such as links to social networking sites, Twitter messaging, chat rooms, and user comments/feedback. While these functions may help marketing and customer retention, they do not represent a Web 2.0 business model.

“Web 2.0 business models encompass an ecosystem of partnerships, designed to leverage both internal and external knowledge and assets,” says Keith Nissen, In-Stat analyst. “End to end ownership of the entire business model is a dying breed. Telecom operators, media companies and others must modify their business models.”

Recent research by In-Stat found the following:

* 78% of heavy Internet users regularly use two or more social networking sites.
* Operators have a key opportunity to provide consumers a “Personal Information Center” (PIC) portal. For example, 66.6% of respondents are very or somewhat interested in aggregating access and sharing of personal images through a PIC.
* Personalized content delivery and advertising is a key success factor. Currently, two-thirds of users never click on Internet ads.
* Century-old business models are obsolete. The newspaper industry’s downward spiral will result in a loss of a projected $25 billion in revenue annually.
* The IP media phone, potentially the consumer’s fourth screen, may be an ideal Web 2.0 service delivery device. By the end of 2013, In-Stat forecasts that over 16 million US households will have a media phone.

The research, “Monetizing the Internet: Using Web 2.0 Business Models” (#IN0904402CM), covers Web 2.0 business models, with a close look at the Telco and newspaper industries. It includes:

* Detailed analysis and survey data reflecting consumer Web 2.0 behavior.
* Analysis of Web 2.0 business principles and their impact on participating competitors.
* In-depth analysis about how Web 2.0 features can be utilized to transform business models.

For more information on this research or to purchase it online, please visit:

http://www.instat.com/catalog/mmcatalogue.asp?id=212 or contact a sales representative:


The price is $3,495.

About In-Stat

In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions.