Internet Threats For Traditional Companies

Internet threats for traditional companies

Regimantas URBANAS

Mathew MOUSSAIF

Plan of the presentation

• Evolution of Internet;• Present all industries influenced by the Internet; • Introduce the problem;• Make a detailed description for each sector

mentioning problems & possible threats;• Give a solution for each industry;

Evolution of Internet• Total number of Internet users: 1,114,274,426 • 65,000 new Web sites an hour• Traffic doubles every 100 days

The Industries

Industries influenced by the Internet:• Newspapers vs on-line news portals;• Film Industry vs P2P programs;• Traditional TV vs YouTUBE;• Mobile network providers vs Skype.

The Problem

• Traditional companies are not so flexible, innovative and cheap as their digital competitors.

• They‘re loosing customers, viewers, readership etc.

• Because of that they‘re becoming less attractive to investors, advertisers.

• Traditional companies suffers from the decrease of their profits;

How to solve this problem?

There are two alternative solutions to this problem:1. Traditional companies can try to prove that they are

more reliable and better than Internet companies or even try to snub them and be lofty to them.

2. Or they can use possibilities of Internet and become competitive in Internet market and save their customers.

Newspapers vs on-line news portals• Create team, which would work with Internet version of

newspaper;• Use information from digital resources like BLOGs;• Newspapers can concentrate on quality and depth of

news;• Become free newspaper and earn money from

advertisement;

VS

Film Industry vs P2P programs

• Create web portals with possibility to download movies legally;

• Add additional value to movie DVD (bonus material);• Stop development of DivX and similar formats;• Acquire P2P companies;• Make strict regulations and harder punishment for

piracy;• Invest into new technologies which would help to

protect the content from copying.

VS

Traditional TV vs YouTUBE• Give possibility for viewers to choose their programs;• Put TV shows, news and other materials on their WEB

pages;• Open their channels on digital video portals;• Expand to mobile market by letting viewers to watch

their TV program from their cell phones;

VS

Mobile network providers vs Skype• Launch their own IP telephony• Make possibility to call from mobile phone to Skype

users;• Introduce new value added services;• Develop third generation 3G network.

VS

Conclusion

Internet = possibilities, not threats

Thank you for attention

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