Jupiter Predicts Strong Broadband Future

The UK and Italy will see the most growth in the number of broadband households next year, with the number increasing threefold during 2002. However, Belgium and Sweden will continue to lead the way with the highest proportion of homes in Europe with broadband connections - at 12% and 18% respectively

Jupiter also estimates that nearly 25% of all European households will have DTV by the end of 2002. At the moment, the UK has the highest penetration of DTV in the world. By the end of 2002, 50% of British homes will have DTV. Whilst DTV take-up will increase elsewhere in Europe, it will be slowest to take off in southern Europe, where less than 20% of homes in Spain and Italy will have DTV by the end of 2002

Online music companies Vitaminic and OD2 are set to prosper across Europe, doing so largely at the expense of the major record labels. The next generation of Napster clones will also continue to gain popular support. Growth may be hampered though by new technology orientated action from the record industry. These powerful companies are expected to no longer rely solely on court cases to quash illegal file sharing.

Jupiter's research also indicates that most of the major record labels will continue to focus their attention on the US at the expense of Europe. In theory, this should both create opportunities for European music companies and fuel the growth of the 'grey' market. Portals and ISPs will promote their music channels and content heavily, as seen most recently with OD2's deal with Tiscali. By the end of 2002 portals such as Yahoo, MSN and AOL will become key online music destinations.

Mark Mulligan, data analyst, commented 'Following a difficult year for the Internet economy, when companies went out of business and others consolidated, the key word became 'profit'. In 2001, Jupiter MMXI pointed to paid content, gambling online, auctions and outsourcing as some of the options for making and saving money through the Internet. In 2002 we expect to see technology playing an important part in the development of the market, as well as a continued increase in the number of consumers going onto the Internet.'

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.