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Coming up in 2002 ...
By Jon Newton,
(more articles from this author)
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Music Industry News - as it happens
Source: Jupiter/Mi2N - December 30, 2001

In the New Year, the Net market will be dominated by developments in broadband Internet access, DTV and the music industry, predicts Internet research and analysis company Jupiter MMXI. What's more, nearly 25% of all European households will have DTV by the end of the year, it says.

Jupiter also forecasts:

* The UK and Italy will see the most growth in the number of broadband households next year, with the number of households with broadband connections increasing threefold

* Belgium and Sweden will continue to lead the way with the highest proportion of homes in Europe with broadband connections - at 12% and 18% respectively

* Broadband in Europe won't reach critical mass (i.e. 15% of homes) until 2006

* Two-way satellite, fibre-to-the-home and fixed wireless access alternatives to broadband will start to make their mark in 2002

* The UK has the highest penetration of DTV in the world. By the end of 2002, 50% of British homes will have DTV

* Whilst DTV take-up will increase elsewhere in Europe, it will be slowest to take off in southern Europe, where less than 20% of homes in Spain and Italy will have DTV by the end of 2002

* Revenues from interactive services on TV will remain significantly lower than those from the PC Internet in 2002

In Europe, online music companies Vitaminic and OD2 will prosper at the expense of the major record labels, Jupiter continues, and:

* The next generation of Napster clones will continue to gain popular support but will face new technology orientated action from the record industry who will no longer rely solely on court cases to quash illegal file sharing

* The major record labels will continue to focus their attention on the US at the expense of Europe, which will both create opportunities for European music companies and fuel the growth of the grey market

* Portals and ISPs will promote their music channels and content heavily, as seen most recently with OD2's deal with Tiscali. By the end of 2002 Portals such as Yahoo, MSN and AOL will become key online music destinations.

Related News from Mi2N:
» The Ones To Watch On The European Internet In 2002

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