• Microsoft Corporation previewed new video streaming technology at Streaming Media West in June 2001 that streams DVD quality video over the Internet at a speed of about 500kBps - well within the capabilities of most cable modem and DSL users.
• Nielsen/NetRatings reports that there are 429 million people worldwide with internet access as of Q1 2001.
• 41% of all Internet users come from the US and Canada.
• Cahner's In-Stat Group forecasts that the number of broadband subscribers will top the 21 million mark globally by the end of 2001 and reach nearly 84 million by 2005.
• The North American wireless data market will grow to 137.5 million subscribers in 2005, Gartner Dataquest predicts. The market had 7.3 million users in 2000.
• The US Department of Education's National Center for Education Statistics finds that 77% of the country's public school classrooms had Internet access in 2000.
• Lyra Research reports that as of April 2001 37% of U.S. Internet users agree or strongly agree that people should pay for online web content. 33% disagreed or strongly disagreed.
• According to a recent report from Kinetic Strategies, there are 7.6 million broadband subscribers in the US and 1.7 million in Canada. Kinetic says that these numbers represent a North American household penetration rate of 8.2%.
• Kinetic Strategies says that 70% of broadband subscribers in North America (6.4 million subscribers) connect to the Internet via a cable modem. 2.9 million subscribers are making digital subscriber line (DSL) connections.
• Online advertisements incorporating streaming audio and video content will be worth $138 million in 2001
• PricewaterhouseCoopers' "Entertainment and Media Outlook" study predicts the US e-advertising and internet access market will enjoy a 14% compound annual growth rate (CAGR) by 2005, reaching $38 billion. That nearly doubles the 7.1% CAGR for the media and entertainment industry overall.
• The Yankee Group reports that streaming media ad spending will hit $3.1 billion by 2005 -- up from $44 million in 2000.
• Video-on-demand (VOD) will generate $65 million by the end of 2001, according to The Yankee Group. The company predicts that VOD revenue will hit $0.42 billion in 2002, $0.97 billion in 2003, $1.43 billion in 2004 and $1.98 billion by 2005.

DIRECT RESPONSE

• DRTV (Direct Response Television) generates nearly $100 billion in sales each year, mainly from short-form (two-minute or less) spots. Infomercials in 1998 accounted for about $2 billion in sales, while televised shopping outlets, such as QVC, HSN, Value Vision and Shop at Home, accounted for roughly $4 billion. Estimates for short-form DRTV place sales at $91.4 billion, $55.8 billion of which are consumer sales.
• Cost of media: The average price of a half-hour block of time is about $800, including national cable and local broadcast. This ranges from $50 in a firesale on a UHF station to $30,000 or more on national cable networks.
• Typical media test: A typical media test occurs over the course of a weekend or two weekends and ranges from $15,000 in media time to $50,000.
• Cost of Fulfillment: Unlike production and media, there is little up-front cost involved in fulfillment. However, budget 5 percent to 7 percent of your total campaign budget for fulfillment, not counting postage.
• Cost of duplication: About $1.20 for a videocassette; about $0.83 for a CD; about $0.50 for an audiocassette.
• Cost of call center: Depends upon the script and how much data you want to capture from your customers. A bare-bones deal can cost $1.50 per call and go upwards of $5 per call for more data.
• According to Response Magazine media billings in 2000 exceeded $957 million, an 11% increase over 1999. National Cable currently receives 48.8% of these billings, Broadcast 41%, and Satellite/Regional Cable 10.2%. Guthy-Renker, a top infomercial producer/promoter currently generates over $500 million in sales annually.
• A multimedia rich website with streaming video, point-and-click video and product details, and easy online purchasing will create a compelling sales tool for this industry, especially if return visits are generated. Online registration, cookies, and usage statistics will also be extremely valuable tools.
• Having worked with Guthy-Renker, Anthony Robbins, and several other major infomercial players, CPD is also developing a strategy to bring infomercials to the Internet. The key to this marketplace will be in developing advertising and promotional methods that drive consumers to the websites as the industry currently relies on "chance" viewings on television, however infomercial companies already spend 40% of gross sales on media buys so there is room for advertising while still exceeding current financial models.

MEETING PROFESSIONALS INTERNATIONAL

• With more than 18,000 members in 64 countries, MPI members collectively account for a total of $10.9 billion expended on meetings per year, representing some 610,662 conclaves held throughout the world. These individuals control an average annual budget of $1.4 million.