From: Nua Ltd. [mailto:[log in to unmask]]
Sent: Monday, October 16, 2000 5:54 PM
To: Recipients of surveys mailing list
Subject: Nua Internet Surveys: October 16, 2000.
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NUA INTERNET SURVEYS - The Number One Resource for Statistics
Free Weekly Email For Latest Information & Trends on the Internet.
Email: [log in to unmask] Web: http://www.nua.ie/surveys/
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October 16th 2000 Published By: Nua Limited Volume 5 No. 40
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CONTENT
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EDITORIAL:
"It's official -- people are bored with Internet hype. They don't want to
hear
another word about a dotcom startup, and they reckon a discussion about
the Internet is about as interesting as listening to someone describing
the features of their new vacuum cleaner."
Catherine McDonnell in 'World Wide Yawn'
ACCESS DEVICES
:PC market shows signs of saturation
:DSL to lead broadband sector
CENSORSHIP
:Increased regulation for Chinese Internet use
E-COMMERCE
:Russian ecommerce market set to soar
:UK is ecommerce leader
:Ecommerce skyrockets in Latin America
EMAIL
:Email marketing to be worth USD4.5 billion
:Daily email output to reach 35 billion
ENTERTAINMENT
:US Napster use soars
GENERAL DEMOGRAPHICS
:UK public bored with Internet hype
:Irish Internet audience increases
TELECOMMUNICATIONS
:NTT DoCoMo aims for European wireless market
USAGE PATTERNS
:Email use higher in Europe than US
:TV website traffic up 400 percent
WOMEN
:Net access increases among Korean women
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EDITORIAL: 'World Wide Yawn' by Catherine McDonnell
http://www.nua.ie/surveys/analysis/weekly_editorial/archives/issue1no148.htm
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It's official -- people are bored with Internet hype. According to a
recent survey carried out by Microsoft Network (MSN), many people in the
UK have heard just about enough of the child millionaires and how the
Internet is set to revolutionize our lives. They don't want to hear
another word about a dotcom startup, and they reckon a discussion about
the Internet is about as interesting as listening to someone describing
the features of their new vacuum cleaner.
Another survey this week indicated that many consumers, having tried
buying goods both online and in traditional stores, have found that the
latter option is far more satisfactory.
If these surveys accurately reflect new trends, some major improvements
in the ease of Internet usage will need to be implemented pretty
quickly. The Internet isn't about to fade away as a result of these
findings, but the risk is that many companies could needlessly go out of
business because they imagine that on the Internet you cannot but
succeed.
These changes in attitude are inevitable, and they're to be welcomed. It
means that finally the Internet is on the way to being regarded as an
everyday tool rather than a glamorous toy. It's vital that the Internet
is seen in this realistic way, as this will force the introduction of a
number of very necessary improvements.
The Internet is, after all, merely a communications tool (albeit one
that's also very sophisticated). It's difficult to be subjective about a
phenomenon that surrounds itself in mystery and awe, so this apparent
about-turn in Internet adoration could be just what we need. We must
appreciate the simplicity of the Internet, along with its complexities,
if we're to get the most out of it.
One way of ensuring that we're not all carried away by the hype is if we
can somehow manage to make and accept changes only when they're
necessary, rather than bowing to the forces of mass marketing and
branding.
For the full story, go to:
http://www.nua.ie/surveys/analysis/weekly_editorial/archives/issue1no148.htm
l
For archives of editorials, go to:
http://www.nua.ie/surveys/analysis/weekly_editorial/archives/index.html
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DIGESTS START HERE
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ACCESS DEVICES
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=26>
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New York Times: PC market shows signs of saturation
The boom may be over for PC manufacturers, as some analysts believe the
market has reached saturation point.
Big players in the PC market, such as Intel and Dell, have seen their
stocks fall in the past few weeks, while Apple chief Steve Jobs
recently announced a profit warning after lighter than anticipated
sales.
In 1999, US computer sales increased by 23.8 percent to 45 million. For
the year 2000 however, research house International Data Corporation
(IDC) predicts a growth rate of only 12.2 percent-the lowest annual
percentage rise since 1994.
Some industry analysts attribute sluggish sales to the fact that so
many consumers and corporations already have computers. According to
IDC, the corporate PC market has evolved into the PC replacement
market, as companies only need to purchase new PCs when upgrading or
replacing the equipment they already own.
However, not all analysts agree, and claim that PC sales have dipped
occasionally over the past five years. The weakness of the euro, high
oil prices, and slow acceptance of Microsoft's Windows 2000 software
may also have contributed to the recent slump.
<http://partners.nytimes.com/2000/10/09/technology/09SHIF.html>
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Cahners In-Stat Group: DSL to lead broadband sector
Digital Subscriber Line (DSL) is set to lead the broadband revolution,
according to a new report by Cahners In-Stat Group.
Subscribers to the high-bandwidth connection will grow from 4.5 million
this year to 64.7 million by 2004. New subscriptions will increase by
71 percent next year to 7.7 million.
Cahners In-stat believes that DSL will prove more popular than cable
modem or satellite services. Recent developments, such as falling modem
prices, reduced service charges, and technological developments may
encourage consumers to choose DSL over its rivals.
Meanwhile, a survey released this week by Statistical Research, Inc.
confirms that broadband connections are increasing among US households.
The percentage of online households using DSL or cable modem has risen
over the past six months from 5 percent to 11 percent. In the same
period, connections to the Web via shared phone lines dropped 9
percent.
<http://www.zdnet.com/anchordesk/stories/story/0,10738,2638773,00.html>
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CENSORSHIP
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=9>
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Newsbytes Asia: Increased regulation for Chinese Internet use
The Chinese government has imposed further restrictions on Internet use
in China, following last month's crackdown on Internet cafes.
According to Reuters, the government has introduced new regulations
limiting foreign investment in Internet and technology companies. As
these companies depend heavily on financial support from external
investors, the new regulations are bound to cause concern among members
of the Chinese IT community.
The government has also ordained that it must own at least 51 percent
of shares in any Chinese IT company.
New rules also make these companies responsible for
preventing "subversive" content entering China via the
Internet. "Subversive" content includes any that "harms the reputation"
of China, supports independence for Taiwan, or provides information
on "cults."
Furthermore, Chinese website administrators must keep track of users
and content for 60 days and give the records to authorities on demand.
<http://www.newsbytes.com/pubNews/00/156018.html>
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E-COMMERCE
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=14>
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BizReport: Russian ecommerce market set to soar
Russian ecommerce revenue is set to increase ninefold in the coming
year, according to a new study from International Data Corp. (IDC).
The rate of Internet connection in Russia has grown rapidly over the
past two years. IDC forecasts that 9.4 million Russians will be
connected to the Web by 2004, representing 6.4 percent of the
population. This figure seems low when compared to an August 2000
survey by Monitoring.ru, which claimed that the Russian Internet
audience currently stands at 9.2 million.
The IDC study, which covers Russia's ecommerce and Internet access
service markets for the period 1999-2004, suggests that the country's
Internet marketplace is now at the same position as the US market in
the mid-1990s. By the end of 1999, the Russian Internet access services
market was worth USD517 million a year.
According to IDC, the sudden explosion of web commerce in Russia is
partly due to the political climate in the country over the past few
years. While there has been investment in Russian ecommerce companies
since 1998, many projects were delayed until after the 2000
presidential elections, resulting in a massive increase in activity
from the beginning of this year.
<http://www.bizreport.com/international/2000/10/20001006-2.htm>
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BBC Online Network: UK is ecommerce leader
UK businesses lead the world in Internet transactions, according to a
recent UK Government survey.
The study found that 27 percent of UK businesses are now using the
Internet. The number of businesses trading online is highest in
Scotland, at 29 percent. Scottish Enterprise said that although some
businesses were not conducting online transactions, 79 percent had an
online presence, through email or a website.
However, questions may be raised about the value of the new report,
which described a firm as "online" if it sent or received the
occasional email, especially as the report is in contrast to other
studies on UK ecommerce. Although UK Government ministers insist that
the UK is on a par with Germany, the US, and Sweden in ecommerce,
accountancy firm PricewaterhouseCoopers recently announced that Germany
leads Europe in online transactions.
A survey of 250 UK small businesses by ebusiness incubator Xworks also
paints a different picture to the Government's study. Almost half of
those questioned in the Xworks survey did not have a website, while 45
percent could not see the benefits of having one. The survey also
revealed that 90 percent of small businesses had underestimated the
cost of setting up a website.
<http://news.bbc.co.uk/hi/english/business/newsid_964000/964710.stm>
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Boston Consulting Group: Ecommerce skyrockets in Latin America
Online retailing in Latin America will be worth USD580 million in 2000,
an increase of 400 percent from last year.
According to the latest report from The Boston Consulting Group (BCG),
Brazil has the largest ecommerce market in the region, accounting for
over half of the entire market. However, the Mexican and Argentinean
markets are catching up, with predicted sales this year of USD91
million and USD82 million respectively.
While this rapid growth is good news for South America's ecommerce
market, many online retailers are struggling to cope with increasing
demand from customers. The BCG report revealed that a large number of
online retailers in the region rate poorly in terms of customer
service, on-time delivery, and product selection.
In a test of 118 ecommerce sites, almost half did not respond to email
inquiries, while 42 percent of goods ordered arrived later than their
promised delivery date.
BCG warned that the Latin American ecommerce market will not be able to
support all 1,300 online retailers currently operating. In order to
succeed in the market, businesses will need to iron out their
operational difficulties.
<http://www.bcg.com/media_center/media_press_release_subpage27.asp>
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EMAIL
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=16>
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eMarketer: Email marketing to be worth USD4.5 billion
The email marketing industry will be worth USD4.5 billion by 2003,
according to a report released this week by eMarketer.
The report predicts that spending on email marketing will reach almost
USD1.1 billion by the end of 2000, with advertisement emails
contributing toward almost half (46 percent) of this figure. Spending
on email advertising alone is expected to reach USD2 billion by 2003.
eMarketer predicts that email advertising will account for a larger
share of Web advertising in the future. Revenue from email advertising
is expected to rise from 5 percent of total Web advertising in 1999 to
13 percent in 2003.
Other email marketing expenditures include management software, list
hosting software and services, branded webmails, and customer
relationship management. Spending on these products and services will
grow from USD589 million in 2000 to USD2.4 billion by 2003.
<http://www.emarketer.com/estats/dailyestats/advertising/20001009_email.
html>
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IDC Research: Daily email output to reach 35 billion
International Data Corporation (IDC) has predicted that 35 billion
emails will be sent every day by 2005.
By the end of this year, the figure should stand at 10 billion . IDC's
E-mail Usage Forecast and Analysis report further estimates that the
number of emails sent annually in Western Europe will be 1.6 trillion
in 2005, up from 511 billion in 2000.
IDC said that in order to plan solutions for dealing with this amount
of emails, Internet professionals need to understand how email use will
evolve over time.
The report also predicts that web browsers such as Internet Explorer
and Netscape will become more popular than standalone applications for
sending and receiving emails.
<http://www.idc.com/software/press/PR/SW101000pr.stm>
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ENTERTAINMENT
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=48>
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Media Metrix: US Napster use soars
With over 8 percent of home users now hooking up to Napster, the
program is the fastest-growing home software application ever. The
Media Matrix report shows that the music file-swapping program had 6.7
million unique users (the estimated number of total users who used the
software application, counted only once) in August, representing an
increase of 5.6 million from February. The use of controversial
software application Napster soared 500 percent among home PC users in
the US between February and August, according to the survey by Media
Metrix.
Penetration of Napster has also increased in the workplace, with 1.2
million workers using the program in August, up from 417,000 in
February.
Napster's popularity is good news for media player developers. The use
of multimedia players such as Realplayer and Spinner by home users
increased by more than two million between February and August.
<http://www.mediametrix.com/press/releases/20001005.jsp?language=us>
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GENERAL DEMOGRAPHICS
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=18>
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BBC Online Network: UK public bored with Internet hype
Many people are bored with the publicity surrounding the Internet,
according to a new UK survey.
In a report carried out for MSN, 21 percent of those polled said they
were getting weary of Internet hype. Stories of how the Internet would
change people's lives were found to be particularly tiresome.
The survey also revealed that 62 percent of respondents felt the
phrase 'dotcom' had become hackneyed, while over two-thirds of those
surveyed (66 percent), said they were bored by tales of 20-something
Internet millionaires.
MSN is not surprised with these results. According to a spokeswoman for
the company, people no longer want to hear hype about the Internet
because it has already become a part of everyday life.
However, despite their attitudes towards Internet publicity, people are
still interested in the Web. Over 77 percent of respondents said they
could not live without the Internet.
<http://news.bbc.co.uk/hi/english/sci/tech/newsid_959000/959497.stm>
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Information Society Commission: Irish Internet audience increases
Over 40 percent of Irish people now have access to the Internet,
according to a new survey by the Information Society Commission.
The results of the survey highlight the progress in information
technology that Ireland has made over the past few years. Internet
access in Ireland is now at 41 percent of the population, up from 5
percent four years ago. The survey also revealed that 47 percent of
people have access to a computer, with 36 percent having access to
email.
Although Irish people seem to be opening up to new technologies, the
prospects for WAP in Ireland are not encouraging-just 4 percent of
those polled have used a WAP phone. Interest in ecommerce is also low
among Irish Web users, with only 18 percent having purchased goods
online in the last year. It should be noted, however, that this figure
is inconsistent with the results of a recent survey by the Irish
Internet Association, which stated that over 60 percent of Irish
Internet users used the Internet to buy goods in the past year.
The survey also showed that 95 percent of people believe that all
school children will be using computers as part of their education
within the next ten years. While most respondents think children will
need to be familiar with information and communications technologies to
get a job in the future, 63 percent expressed concern at the amount of
time young people spend on PCs.
Although most of the survey results were encouraging, a digital divide
still seems to exist in Ireland. Only 30 percent of unemployed people
are familiar with PCs, whereas 87 percent of students and 64 percent of
the total workforce are computer literate.
<http://www.isc.ie/cgi-local/nepr.cgi?f=all&c=press&id=73&o=0>
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TELECOMMUNICATIONS
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=38>
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Newsbytes: NTT DoCoMo aims for European wireless market
NTT DoCoMo, the organization behind Japan's mobile Internet service i-
mode, is set to enter the European wireless market through a new UK
subsidiary and alliances with several European companies.
With more than 10 million subscribers, i-mode is Japan's biggest
Internet service provider. NTT DoCoMo has taken a number of steps to
ensure that i-mode will be just as successful in Europe. The company
will focus its European operations through a UK-based subsidiary,
DoCoMo Europe, which will work closely with the company's European
partners, Dutch operator KPN Mobile and Hutchison 3G UK Holding Ltd.
NTT DoCoMo is planning a joint venture with KPN Mobile to provide i-
mode based and third-generation wireless services in Europe. The
company also plans to set up a research lab in Munich to examine mobile
security technologies and network infrastructure in Europe.
NTT DoCoMo's move into the European market comes at a time of great
expansion for the company. It recently became the largest shareholder
in AOL Japan, with a 42.3 percent stake.
<http://www.newsbytes.com/pubNews/00/155981.html>
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USAGE PATTERNS
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=34>
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NetValue: Email use higher in Europe than US
Europeans use email much more than US Internet users, according to the
latest findings by NetValue.
The French lead the way, with nearly two-thirds (64 percent) sending
and receiving email in August, followed by the UK (60.3 percent) and
Germany (53.5 percent). In the US, however, less than half (44 percent)
of those connected to the Net used email.
Of the countries measured, Mexico came out on top in terms of audio-
video usage, chat, and Instant messaging.
The study also found that Mexican Internet users tend to be younger
than their counterparts in the US and Europe-67 percent of the
country's online population is aged 34 or under.
Global brands Yahoo, Microsoft, and AOL featured among the top ten
websites for all countries covered by the report, with Microsoft's
msn.com taking the number one spot in both the UK and Mexico.
<http://www.netvalue.com/corp/presse/index_frame.htm?fichier=cp0014.htm>
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MMXI Europe: TV website traffic up 400 percent
The number of visitors to TV station websites increased by 400 percent
in the past year, according to a new report by MMXI Europe.
In the UK, BBC.co.uk attracted 1.5 million unique visitors in August
2000, an increase of 33 percent from October 1999. Channel4.com's
Internet audience for August 2000 stood at 1.3 million, up from 271,000
in March.
The websites of other European TV stations also showed significant
increases. France's most popular TV channel, TF1, received 267,000
visitors to its website in August, up 50 percent from October of last
year. In Germany, RTL.de increased its audience by 385 percent from
204,000 in October 1999 to 991,000 in August 2000.
The two Swedish TV station websites covered in the report, SVT.se and
TV4.se, have been consistently popular over the past year. Both sites
have reached 10 percent of Sweden's total Internet population each
month since January 1999.
According to MMXI, TV station websites are popular because they allow
people to take part and provide instant feedback on the latest news and
programs. TV channels can use their websites as a way to strengthen
their brand and provide more value to their audience.
<http://www.mediametrix.com/press/releases/20001010.jsp?language=uk>
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WOMEN
Archives: <http://www.nua.ie/surveys/index.cgi?f=FS&cat_id=35>
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ZDNet: Net access increases among Korean women
The number of female Internet users in Korea has increased
significantly in the past year, according to a new study by the Korean
Network Information Center.
The survey shows that 6.94 million Korean women were online by the end
of August, an increase of 33.2 percent from March.
Women now make up over 42 percent of all Internet users in Korea, with
Internet access currently growing at a faster rate among women than
men.
As access to the Web soars in Korea, the country is fast becoming one
of Asia's Internet hot spots. According to the center, 16.4 million
people, or 38.5 percent of the population, access the Internet at least
once a month, a rise of 17.7 percent since March. A report last month
by NetValue placed Korea ahead of Taiwan, Hong Kong, and China in terms
of Internet use.
<http://www.zdnetasia.com/news/dailynews/story/0,2000010021,20075519-
1,00.htm>
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