- 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
- 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
- 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
- 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