El.pub Analytic Issue Number 8
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|Introduction | Digital content themes | Value chain aspects | Content sectors | Technology|
|Business models | To be continued | Comment on this issue of Analytic|
The collapse in dot.com finance over the past two years both fuelled, and was fuelled by, the drop in advertising spending. Robert Coen of Universal McCann estimated that ad spending on TV and magazines by Internet companies fell by 40% in the first half of 2001. This drop, and a similar fall from related industries affected by the industrial downturn in the US, such as computers and telecommunications, helped seal the fate of many dot.com publishers and media companies, and of course their techware suppliers.
An important knock-on effect has been a drop in venture capital funding, with some financiers even leaving the sector altogether for better investment opportunities elsewhere. Pricking the balloon of expectations will mean less prospect of IPO fortunes and less money to spend on RTD. RTD, whether privately or publicly funded (often a mixture of both), will need to provide better prospects of success to gain funding in a more competitive investment market.
Over the next few months Analytic will concentrate on digital content RTD perspectives - looking at different aspects of the industry and areas where RTD is needed to overcome barriers to service deployment.
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