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Online Paid Content: US Market Spending Report [PDF] |
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| Topic: Economics |
5:59 am EDT, Aug 2, 2002 |
Here's the full text of the "people are paying for content" study that's been in the news lately. The study determined that U.S. consumers spent $675M for online content in 2001, a 92% increase over 2000 spending levels. Further, industry growth accelerated into the current year, as U.S. consumers spent $300M for online content in the first quarter of 2002, a 155% increase over the same quarter last year. "As content providers get smarter about creating valuable for-pay offerings, an increasing number of consumers are responding with their wallets." Subscriptions are the dominant pricing model. Online Paid Content: US Market Spending Report [PDF] |
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A Shift Registers in Willingness to Pay for Internet Content |
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| Topic: Economics |
5:58 am EDT, Aug 1, 2002 |
More Internet users are showing a willingness to pay for content online -- subscribing to news sites, for example, or paying fees to send e-greeting cards -- suggesting a shift in consumers' expectations that online services should be free. The growth in these categories suggests that businesses are beginning to figure out how to package their services in ways that appeal to consumers, and that consumers are overcoming the idea that content on the Internet should be free. "Slowly but surely, people are paying for content." WSJ publisher: One common theme among sites that are successfully charging for content is that they have created an audience eager to return for information or services on a frequent basis. A Shift Registers in Willingness to Pay for Internet Content |
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Telecom Sector May Find Past Is Its Future |
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| Topic: Economics |
11:11 pm EDT, Jul 7, 2002 |
About 500,000 people have lost their jobs. Dozens of companies have gone bankrupt. As much as half a trillion dollars in investments have evaporated. An accounting scandal threatens to bring down WorldCom Inc. and federal authorities are investigating the books of other former highfliers. There is another casualty of the implosion of the telecommunications industry: a grand vision of the future. At least 63 telecommunications companies have landed in bankruptcy since 2000, ... [but] the most expensive failures may still be ahead. Former FDIC chairman: "... the largest single meltdown ... I've ever seen." This article is generally a good summary of the events to date. It references 19th century railroad construction and contains the obligatory Reed Hundt quote, of course. But they get some things wrong, IMO. It's suggested that the big legacy telcos (the baby Bells, in the US) are safe investments, out of harm's reach. I'm skeptical. And then, they pose this question: Who needs Internet video when HBO and Showtime seem to add more channels by the minute? It's as if the author has never even used the Internet. And trying to sell broadband on the basis of multimedia content distribution only magnifies such misconceptions. A huge amount of very expensive wiring and electronics is going to rust, waiting for new ideas that can harness it. Maybe waiting forever. Telecom Sector May Find Past Is Its Future |
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Qwest Shares Fall on Moody's News |
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| Topic: Economics |
11:02 am EDT, Jul 4, 2002 |
Shares of Qwest fell 10% Wednesday as Moody's indicated it might downgrade Qwest's credit rating. Qwest is on Moody's watchlist ... Thousands of customers were expected to be affected by the shutdown of KPNQwest, of which Qwest has a 47% share. Qwest Shares Fall on Moody's News |
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KPNQwest begins network shutdown |
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| Topic: Economics |
10:54 am EDT, Jul 4, 2002 |
KPNQwest, the bankrupt Dutch telecommunications group, has begun shutting down its Ebone network, leaving up to 4,500 companies without their Internet connection. "Around 20% of the remaining customers had no alternative provider arranged. Smaller customers will be hurt the most. It is one big mess. It will not be easy to start up again. ... The banks have cut their throats." The Ebone staff is not optimistic about finding jobs. Europe is willing to let dying telcos take their networks down with them. Will the US be any different? KPNQwest begins network shutdown |
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WorldCom, Inc., Sworn Statement to SEC |
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| Topic: Economics |
9:34 pm EDT, Jul 1, 2002 |
"This statement is submitted by WorldCom, Inc. (the "Company") in response to the Commission's June 26, 2002 Order (the "Order") directing the Company to describe in detail the facts and circumstances underlying the events described in and leading to the Company's June 25, 2002 press release (the "Release") regarding its intention to restate its 2001 and first quarter 2002 financial statements." WorldCom, Inc., Sworn Statement to SEC |
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Here Comes Asset Based Telecom | The COOK Report On Internet |
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| Topic: Economics |
9:23 pm EDT, Jul 1, 2002 |
Debt "Restructuring" Is Prerequisite of Industry Recovery -- Ownership & Control of Assets Will Become Central Issue As the Center Goes Chapter 11, Economic Activity and Broadband Progress Moves to Locally Owned Networks at the Edges We Explore Architectural, Economic, Technology and Policy Issues of FTTH June 30, 2002 -- This combined August September Special Issue of the COOK Report on Internet takes an exhaustive look at what is coming to be known as asset based telecommunications. The latest issue of the Cook Report is out today. Read it or weep! The obvious question: "Can I afford to read this?"
The obvious reply: "Can you afford not to?" Here Comes Asset Based Telecom | The COOK Report On Internet |
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Job Cuts Take Heavy Toll on Telecom Industry |
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| Topic: Economics |
8:11 am EDT, Jun 29, 2002 |
WorldCom's downfall is swelling the exodus of workers from the telecom industry, which alone has accounted for more than 10% of jobs lost in the latest US recession. Having wildly overexpanded in the 1990's, telecom companies have been rushing to shrink ever since, serving as a drag on the economic recovery. "Another 10 percent have to go ... and the industry won't need them back." Are you still working in the telecom industry? Job Cuts Take Heavy Toll on Telecom Industry |
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KPNQwest to be broken up | Financial Times |
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| Topic: Economics |
9:20 pm EDT, Jun 28, 2002 |
KPNQwest will be broken up and parts of it sold as early as this weekend. AT&T walked away from making a bid amidst the prospect of filing for bankruptcy in 10 jurisdictions. It's bad news for creditors, who are now unlikely to realize any remaining value. Customers also worry whether the network can remain operational. "We have three days to sell what was once a €40bn telecoms empire." KPNQwest owns Europe's largest data network, spanning 18 European countries and connecting 60 cities. It went bust amid losses which it blamed on a slump in demand for capacity. It's one bright, shiny share of KPNQwest for you if you can guess the identity of their auditor. KPNQwest to be broken up | Financial Times |
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WorldCom Facing Charges of Fraud; Bush Vows Inquiry |
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| Topic: Economics |
6:11 am EDT, Jun 27, 2002 |
CSFB says banks will now refuse credit, and "bankruptcy is now a distinct and near-term possibility." Off-market, Worldcom's stock down to 9 cents. AT&T's stock reached a 10-year low. Nortel down 10%, Lucent down 20%, Qwest down 57%. Qwest director Marilyn Carson Nelson resigns after 27 years. FCC chairman: "I am deeply concerned." [He obviously isn't reading the Cook Report, or he would have been concerned six months ago.] ... the telecommunications industry is likely to be left reeling ... Scott Cleland: "Investors are in denial, just like they were with WorldCom, on how much worse it can get." ... Lawyer: "There are some telecom managers out there who bought into this whole one-stop-shopping thing. Those guys who were foolish enough to put all their eggs in one basket are now in a very awkward position, particularly if that choice was WorldCom." Reed Hundt warns: "70% of Internet traffic, 30% of consumer long distance, and 50% of corporate communications crosses the Worldcom network. Worldcom is the most important Internet company in the world." Worst. Scandal. Ever. Bah. This simple fraud is a sidebar to the real story, which is that the global telecom industry is in the midst of collapse. Recipe for death (of an industry): 1) Initiate hemorrhaging. 2) Allow to clot. 3) Repeat. WorldCom Facing Charges of Fraud; Bush Vows Inquiry |
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