More INSP questions for the bears,
Now let's move from the wireless internet market to the plain old internet services that INSP provides.
1. What part of the following statement do you disagree with?
Infospace has partnerships with over 3000 web sites, which they provide consumer services and other content. On average, Infospace gets $16k per partner.
2. Obviously you agree with statement number 1 since the content of the statement is fact. The next statement is forward looking. It's based on an assumption that INSP can take it's dominate position (ie. 3000 website partners) and grow from there. Assuming that you disagree with the following statement, what level of sales from this part of their business do YOU think INSP will capture by 2003?
According to some analysts, they feel Infospace can generate over $500 million by 2003, just from providing content to web sites. Some of the sites using Infospace are AOL, Microsoft, Disney's GO Network, NBC's Snap, Lycos, Go2Net Inc., DoubleClick, Dow Jones (The Wall Street Journal Interactive Edition) and ABC LocalNet, among others. 88% of internet users will visit 3 of Infospace's partnered sites. This means 88% of all web users are on average visiting 3 sites of Infospace's affiliate network. This number is expected to grow much larger over time.
4. This is a high margin business. If they create a map service, or a stock quote service and they sell it for use on one website, their cost to provide it to the second web site is minimal. Once they are selling the same information to thousands of sites, the actual costs are quite minimal. It's an efficient business model that grows increasingly efficient as the customer base grows. Do you agree? What level of NET margin would YOU expect on this type of business model? |
