Internet Ecosystem Framework - CQ4 Trends Strong, Though Slower...

Internet user / usage trends remain strong, though growth rates, at margin, are slowing:
In CQ4, there were an estimated 1,039MM global Internet users; 209MM global broadband subscribers (up 41% Y/Y); global search query volume (per comScore) was up 28% Y/Y. Yahoo!’s average daily page views rose 20% Y/Y while monetization (or
marketing revenue per 1,000 pages) increased to $3.02 vs. $2.57 Y/Y, though global unique visitor growth slowed to 11% Y/Y vs. 17% in CQ3 and 22% in CQ2. eBay’s units traded rose an estimated 21% Y/Y with GMV up 22% Y/Y. VeriSign’s global registry was up 30% Y/Y. Amazon.com’s units shipped were up 22% Y/Y. PayPal payments rose 40% Y/Y and Apple iTunes’ songs downloaded increased 289% Y/Y while iPod units sold were up 273% Y/Y. Skype register users increased 277% Y/Y.

We drilldown on 34 Internet data points from 39 companies / agencies:
Our Internet Ecosystem Framework focuses on trends for Internet users, Internet usage, online advertising, ecommerce, digital media and WiFi / Wireless data. The highlighted trends are key to watch through C2006 -- we remain upbeat about the outlook. We continue to estimate annual global growth of 10-15% for Internet
users; 20-30% for usage and 30%+ for monetization.

Internet & Consumer Software Industry view is Attractive
We maintain that investors still underestimate the impact the Internet will have in changing business process and consumer behavior on a global basis. We continue to believe that, at the margin, online is gaining share from offline, that this will occur for some time to come, and should benefit the Internet leaders.

An Update from the Digital World: Internet Ecosystem Framework - CQ4 Trends Strong, Though Slower... (13 Pages)