Forecasts about China's Internet and New Media Market in 2006

Press Release

Evolution from man-machine interaction to interpersonal interaction will create new business models in search and e-business fields.
Analysys International thinks that in 2006 interpersonal interaction demands such as community networking will become users' core demand for Internet services. Interpersonal interaction will deepen the excavation of original contents, explore the information sources and strengthen contacts between users and will result in the creation of community of online Internetservice and new off-line service model. For instance, the mode of community combined with e-business, search engine, Internet music and Internet education will be widely tried and become the key element for various services to create new business models. (...)

Typical WEB2.0 enterprises will be acquired by traditional Internetbusiness.
Analysys International thinks that the features of WEB2.0 represent the developing trends of current user demands. In 2006, traditional Internet business companies will acquire typical enterprises with advantages in WEB2.0. Transplant and integration of advantageous services from WEB2.0 will stimulate traditional Internet service growth.

IPTV standard will bottleneck the market development.
Analysys International thinks that in 2006, IPTV standard will become thefocus of all players in the industry chain. Although the operators and other vendors are trying to improve the industry ecosystem, the IPTV standard will bottleneck the market from making breakthrough development on subscriber and market size. But investment to the links of the industry will become the hotspot of investments.

Shortened channels will boost development of e-commerce.
Analysys International thinks that B2C and C2C service providers will enhance their promotion through Internet in 2006. New types of Internet marketing will shorten the channels to reach target users and push the right products to users by tracking and analyzing customer demands. This method will improve the personalization of network and improve reaching rate and user experience and propel the development of e-commerce in China.

Introduction of different solutions such as DRM and new technologies will change the business models of mobile VAS and drive the acceleration of industry structure under 3G.
Analysys International thinks that under the background of 3G initiation, introduction of new technologies combined with existing services will become the new drive to business model innovation on the new platform and propel thec hanges of industry structure. Analysys International thinks that theintroduction of DRM will boost rapid amalgamation and development of related technology criterion and standards, and constant innovation of business modes.

SOURCE Analysys International