FORECAST SEES INTERACTIVE-MEDIA SURGE.Byline: Dave McNary Daily News Staff Writer Annual revenues from the consumer interactive media business will more than quadruple to over $46 billion in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. within 10 years, a survey released Tuesday projected. Internet access See how to access the Internet. , currently generating $3.7 billion in annual revenues, will be the source of $12.7 billion in sales by 2007, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the forecast by Paul Kagan Associates Inc. of Carmel. The growth in that sector will lead to massive growth in electronic commerce from $900 million currently to $11.7 billion in a decade. Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. will increase tenfold tenfold Adjective 1. having ten times as many or as much 2. composed of ten parts Adverb by ten times as many or as much Adj. 1. from $600 million to $6 billion during the decade. ``The combination of video and computer applications has the interactive media on a much faster track than its predecessors,'' said Paul Kagan, chairman of the research-consulting firm, noting that the newspaper business has needed two centuries for its advertising revenues to approach $60 billion. Kagan said the gains will be driven by improvements in ease of use. ``Despite pioneering traffic problems and low speed of early modems, interactive media growth will continue unabated un·a·bat·ed adj. Sustaining an original intensity or maintaining full force with no decrease: an unabated windstorm; a battle fought with unabated violence. because of rapid changes in technology inside the transmission systems, computers and TV sets,'' he noted. Lawrence Gerbrandt, a Kagan media analyst, said the largest increase over the next decade should come around 2000 and 2001 once high-speed access to the Internet becomes widely available. The other major driver in boosting interactive revenues will come when personal computers become as easy to use as common household appliances, he added. ``The PC is still not user friendly in that it's daunting daunt tr.v. daunt·ed, daunt·ing, daunts To abate the courage of; discourage. See Synonyms at dismay. [Middle English daunten, from Old French danter, from Latin for a lot of people just to start it up,'' Gerbrandt said. ``It makes people jump through too many hoops.'' Gerbrandt also said the growth in interactive media would not necessarily cause a revenue decline in other areas but simply limit the growth of those sectors. ``The increase in cable has taken away some of the growth from broadcast TV, but broadcast has not declined,'' he said. CAPTION(S): Chart Chart: Interactive media revenue projections |
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