Increasing numbers of companies are seeing their business models erode as communication services, information and entertainment content shift to the Internet. For many telecom service providers and media companies, organizational survival is at stake, according to In-Stat’s report "Monetizing the Internet: Using Web 2.0 Business Models."
Organizations must do more than simply add functions, such as links to social networking sites, Twitter messaging, chat rooms, and user comments/feedback, In-Stat says. While these functions may help marketing and customer retention, they do not represent a Web 2.0 business model.
The report indicates the following:
. 78 percent of heavy Internet users regularly use two or more social networking sites.
. Operators have a key opportunity to provide consumers a "personal information center" portal. For example, 66.6 percent of respondents are very or somewhat interested in aggregating access and sharing of personal images through a PIC.
. Personalized content delivery and advertising is a key success factor. Currently, two-thirds of users never click on Internet ads.
. The IP media phone, potentially the consumer’s fourth screen, may be an ideal Web 2.0 service delivery device. By the end of 2013, In-Stat forecasts that more than 16 million U.S. households will have media phones.