Executive Summary

Table of Contents

Back to Office Machinery Index

Normally £311 - Our Price £287.67 - SAVE £23.33

EXECUTIVE SUMMARY

This report considers individual non-business usage of, and spending on, the Internet. The report focuses on two areas: individual spending on Internet connectivity and individual spending on electronic commerce (e-commerce).
The consumer Internet market (including connectivity and e-commerce) was worth £548m in 1998, and is predicted to grow to £1.12bn in 1999. The market has experienced exceptionally fast growth in 1999 -- a fact explained by the widespread uptake of computers by individuals and the introduction of free Internet access.
In 1999, the main driver of revenue growth has been e-commerce, rather than connectivity services, revenue from which has declined as a result of the availability of free access. While most individuals use the Internet for entertainment and leisure purposes, increasingly it is e-commerce that is providing income for the industry.
At the same time, the user base for the Internet is changing. `Mr and Mrs Average' are replacing the computer `geek' as customers. Lower income consumers, women, children and older consumers are becoming more important as Internet users.
The key issues now shaping the consumer market are:

* the shift of power in the industry from content publishers to e-commerce providers
* the growth of new forms of e-commerce sites, such as secure malls and auction sites
* the importance of messaging for improving consumer loyalty to a website
* proposed new arrangements and legislation to govern the Internet (i.e. new e-commerce regulations)
* the growing strategic importance of Internet advertising and the role in this taken by the portal and e-commerce sites.

The consumer Internet market will see major changes between 1999 and 2003, including new telecommunications access technologies (e.g. integrated services digital network -- ISDN, digital subscriber lines -- xDSL, cable modems, wireless technology and electricity access), new access devices (e.g. personal computer televisions -- PC/TVs and NetTVs), new Internet services (e.g. full development of online shopping, gaming and education), and new business pricing models to handle new access technologies.
The consumer Internet market (including connectivity and e-commerce) will be worth £6.21bn in 2003, having grown by 456.5 percent between 1999 and 2003, with the main growth coming in the e-commerce sector. The number of individual accounts (mid-year) will rise from 4.8 million in 1999 to 12.9 million in 2002.

Back to Top

TABLE OF CONTENTS

Executive Summary

Market Definition

INTRODUCTION

DEFINITIONS

MARKET SECTORS

MARKET POSITION

MARKET TRENDS

Table 1: Expenditure on the Internet as a Share of Total Household Expenditure (£m and percent), 1996-1999

Market Size

THE TOTAL MARKET

BY MARKET SECTOR

A GLOBAL PERSPECTIVE

Table 2: The UK Consumer Internet Market by Value (£m), Mid-Year 1996-1999

Table 3: Share of Local Telephone Call Charge Received by the Local and Terminating Operators ( percent), 1999

Table 4: The UK Internet Connectivity Market by Volume and Value (million, £m and £), 1996-1999

Table 5: Internet Accounts by Type (million and percent), Mid-Year 1998 and 1999

Table 6: The Cost of 20 Hours Online per Month in Selected Countries of the World ($)Å, 1998

Table 7: ISDN Penetration and Connection Costs in Selected Countries of the World ($), 1998

Table 8: The UK's Major Internet Service Providers by Number of Accounts (000), Mid-1999

Table 9: The UK's Largest Consumer Dial-Up Internet Service Providers ( percent of accounts), 1999

Table 10: Type of Browser Used to Access 400 Proteus-Hosted Websites ( percent of accesses), 31st July to 6th August 1999

Table 11: The UK Consumer Electronic Commerce Market by Value (£m), 1997-1999

Table 12: The Number of Internet Hosts in the UK and the World (000), July 1994-1999Î

Table 13: The Number of Internet Hosts in the UK and the Rest of Europe, June 1999

Industry Background

THE DEVELOPMENT OF THE INTERNET

INDUSTRY CONCENTRATION

TRADE ASSOCIATIONS

Table 14: The History of the Internet, 1960-1999

Table 15: The Estimated Number of Internet Companies in the UK, 1999

Table 16: The Estimated Number of Companies in the Consumer Internet Software Market by Type of Product, 1999

Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

ADVERTISING AND PROMOTION

Table 17: Internet Service Providers Offering Consumer Connectivity and the Services They Provide, 1999

Table 18: Major Internet Software Companies and Examples of Their Products, 1999

Table 19: Main Media Advertising Expenditure by Internet Service Providers (£000), Year Ending June 1999

Table 20: Main Media Advertising Expenditure by Online Services and Web Pages (£000), Year Ending June 1999

Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Buying Behaviour

THE TARGET MARKET

INTERNET USAGE

POTENTIAL OF THE INTERNET

Table 21: Penetration of Information Technology Products in the UK and the European Union ( percent of homes), 1998

Table 22: Penetration of the Internet in the Countries of the European Union ( percent of consumers), 1998

Table 23: Reasons for Using a Computer - First Response ( percent of adults), 1998

Table 24: Penetration of Electronic Mail and the Internet - First Response ( percent of adults), 1998

Table 25: Reasons for Using a Computer - Combined Response ( percent of adults), 1998

Table 26: Penetration of Electronic Mail and the Internet - Combined Response ( percent of adults), 1998

Table 27: Services Available in the 'Information Society' Which Are of Interest to UK Consumers ( percent of consumers), 1998

Current Issues

CONTENT RENAISSANCE

ELECTRONIC COMMERCE

LEGISLATION

CONSOLIDATION

VOICE OVER INTERNET PROTOCOL

Forecasts

FORECASTS 1999 TO 2003

THE FUTURE OF THE INTERNET

Table 28: The Forecast UK Internet Connectivity Market by Volume and Value (million, £m and £), 1999-2003

Table 29: The Forecast UK Consumer Electronic Commerce Market by Value (£m), 1999-2003

Company Profiles

INTRODUCTION

DEFINITIONS

FURTHER INFORMATION

Further Sources

ASSOCIATIONS

PERIODICALS

DIRECTORIES

GENERAL SOURCES

HOPPENSTEDT BONNIER INFORMATION SOURCES

GOVERNMENT PUBLICATIONS

OTHER SOURCES

Text © 1999 Key Note

Back to Top

Back To REPORTFINDER HOME PAGE

Ariadne - working together with our customers to enhance productivity and increase knowledge

© 2000 www.the-list.co.uk Ariadne

Last updated by Jacob van Eldik 24th January 2000