Exclusive extracts from this 115-page-long report:
- What is the business?
- What are the main markets?
Although subscription-based services are a growing part of their revenue models, Internet companies provide most of their services for free and still derive the bulk of their income from advertising. In fact, they follow a two-sided business model by which they provide a wide array of services to draw and retain users on their platforms in order to market ad space and bundled user data to advertisers.
- Who are the key players?
U.S. Internet companies largely dominate the global web in terms of revenues as well as worldwide users. Building on favourable conditions in their home market (large user base, start-up culture, venture-capital financing, high Internet penetration rate, IT skills and creativity), U.S. Internet companies have excelled at building innovative web services from start-ups into large-scale, multinational platforms.
- How intense is competition?
Competition between Internet companies has significantly intensified over the past decade as the industry has completed its transition from a poorly regulated, free digital space to a highly-monetized, strongly diversified market for media, communication, entertainment and marketing services. Large-scale network effects and targeted acquisitions have further enabled major Internet companies to grow into digital monopolies in their respective core business.