Broadband in - portals out?
Music Industry News - as it happens
Source: MusicDish/Mi2N - December 6, 2001
In Europe, "Portals face a Catch-22 scenario; they must provide broadband
content to stay attractive but operate it at a loss," says Forrester
Research BV. But the collapse of the "generalist portal business" will
provide a weapon for content producers to capture consumer revenues, says
Forrester, based in The Netherlands.
"To survive, Europe's portals must adapt to one of four business models that
blend narrowband and broadband use," says Forrester analyst Helen Omwando.
"Conglomerates like AOL Time Warner and Terra Lycos own both successful
portals and rich content, and the power shift will not affect their overall
financial performance. But to keep their position in the broadband world,
they will enrich their content by buying small but premium content producers
in local markets - running each service as a separate business, raising the
bar on quality entertainment, providing ad-free online media consumption,
and getting revenues from hybrid offerings."
Related News from Mi2N:
» Broadband Will Squeeze Europe's Generalist Portals As Media Producers Grab Customers And Revenues
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