The sheer size of the Chinese market makes it one of the hottest areas for growth in the world, and Chinese Internet users are no exception. Currently numbering more than 111 million, the Chinese Internet population is second only to the United States in sheer size. According to eMarketer, by the end of the decade, China’s Internet population will swell to more than 183 million—that being a mere 13.6 percent of the country’s current population. Growth will continue at more than 20 percent annually through 2007. But according to eMarketer, a number of constraints continue to restrict the market from reaching its full potential. A lack of belief in credit cards among the Chinese population, even Internet users, makes it more difficult for them to pay for goods. Because of the country’s sheer size, getting them delivered can also be tricky. That being said, Chinese web surfers are like many other Internet users around the world. Many are urban, young, and educated. They are online a lot and can spread word of products quickly, thanks to heavy use of online forums and bulletin boards. Increasing numbers have broadband access—12 percent in 2006, 21 percent by 2010—making it possible for many to access rich media.

SOURCE: eMarketer

NBC Leads Net Broadcasters

Due in part to heavy traffic to the web site for a popular game show, NBC led the four major American broadcast networks in web traffic during four weeks in May, according to data from Hitwise. The network captured 43 percent of all visitors to the four sites, while competitors ABC and CBS grabbed 27 and 21 percent, respectively. Thirty percent of NBC’s traffic was related to Deal or No Deal. During the month, visits to NBC.com doubled from the same time last year. In early May, competitor ABC began streaming episodes of selected programs for free, a move that resulted in a 25 percent spike in traffic when compared to the prior month. Visits to the streaming site peaked on Thursdays, the day after the televised airing of the network’s hit show Lost. Smaller spikes were observed on Mondays, after the Sunday airing of Desperate Housewives, another popular ABC program. According to the firm’s search data, Fox’s American Idol led searches for the week ending May 27, followed by Lost and Deal or No Deal.

SOURCE: Hitwise

Media Server Surge

Demand for media backup, competition among video providers, and wider accessibility of IP content are major drivers behind increasingly widespread deployment of home media servers, reports Parks Associates. By the end of the decade the firm projects that sales of the devices will reach 50 million annually. The devices, classified as a hard-drive-based platform with media-sharing software and connected to a home network, will become an increasingly important way for media- and content-laden consumers to safely store and more easily distribute their data. According to Parks, consumers will see great benefit from centralized storage at home. Both hard drive manufacturers and home networking technology vendors will benefit from increased demand for their products, as will service providers. Both PC and consumer electronics vendors incorporating media server functions into their devices will see increased margins and the ability to incorporate new features, like content delivered over IP.

SOURCE: Parks Associates

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