Internet Access for the Rest of the World?
March 5, 1999
NEW YORK--(BUSINESS WIRE) via NewsEdge Corporation -- Jupiter
Communications has just released its research report on digital
set-top device markets. It pointed out that only 20% of the Web's
leading E-commerce players are prepared to capitalize on the
opportunities that the explosive growth of set-top boxes, such as
Microsoft's WebTV and Asia Media's MyWeb, will provide. International
Data Corporation estimates that the market for worldwide set-top
boxes will explode over the next few years, with over 5 million units to
be shipped in 2000 and 11 million units in 2002. The growth of
Internet usage will be strongest in emerging markets, where annual
growth rates of 38% are expected through 2001. According to Jupiter
Communications, "First-movers, who can secure premium positioning
in the set-top environment, will benefit from the ease-of-use of this
interactive experience and consumer inertia."
While most media coverage has been concentrated on the U.S.
market, the real potential -- still virtually untapped -- is outside the
U.S. "This year the number of Internet users outside North America is
expected to exceed the number of users in North America. That offers
a tremendous opportunity for companies offering Internet access in
the emerging markets," says Edward J. Tobin, Chairman of New
York-based Asia Media Communications (OTC BB:ASMCD). Asia Media
is traded in Nasdaq's OTC bulletin board under the ticker symbol
ASMCD.
Asia Media announced last Thursday that it acquired a leading
Internet service in the emerging markets -- TecnoChannel
Technologies -- the company behind the successful MyWeb service.
MyWeb's strongest markets include Hong Kong, Singapore, China as
well as Malaysia, where it has practically a 100% market share.
"MyWeb expects to become to the Far East what America Online is to
the U.S.," explains T.S. Wong, CEO of MyWeb. "Our clients can use
their TV's to connect to the Internet via a set-top box and a remote
control or wireless keyboard. While in the U.S., computers are the
primary way to access the Internet, in emerging markets most people
will find set-top boxes more affordable and definitely more user
friendly. That's why TV-based web access is much more popular
outside the U.S."
MyWeb's positioning resembles that of America Online (NYSE:AOL)
and Prodigy (Nasdaq:PRGY). "MyWeb has an online service focused on
E-commerce and content in every market in which it operates. We
are in many ways similar to Netscape (Nasdaq:NSCP) or AOL. Their
Web portals receive heavy traffic because users automatically access
their site when logging in. So do ours," states Mr. Wong.
MyWeb already has a base of 15,000 set top boxes in the market,
and it expects over 100,000 more to be sold this year. That would be
more than twice the amount that WebTV had in the market when it
was purchased by Microsoft in 1997 for $425 million. On Tuesday,
ASMCD (MyWeb) had a market cap of only $120 million.
What makes the MyWeb business model so powerful, is that it can
grow exponentially. MyWeb's growth is fueled by the growth in the
number of its partnering Internet Service Providers. At the same time,
those ISP's subscriber bases continue to explode. The growing
amount of subscribes are then channeled to MyWeb's portal, and its
revenues from advertising and E-commerce transactions shoot up. It
becomes a reiterative process, where the laws of compounded growth
apply.
"We acquired MyWeb, because it just made sense. Research shows
that the Internet is most frequently used for communication --
e-mail, chat and newsgroups -- and for research and entertainment.
PC's are heavily over-equipped to perform these functions. MyWeb
can do all this, but it is easier to install, and costs only a fraction of
the price of a PC, which is a very important sales argument for the
rest of the world," says Mr. Tobin.
The statements made by Asia Media Communications Ltd. / MyWeb
Inc.com may be forward looking in nature. Actual results may differ
materially from those projected in forward looking statements. Asia
Media Communications Ltd. / MyWeb Inc.com believes that its primary
risk factors include, but are not limited to: the need for substantial
financial requirements; the need to develop effective internal
processes and systems; the ability to attract and retain high quality
employees; changes in the overall economy; changes in technology;
the number and size of competitors in its markets; changes in the law
and regulatory policy; and the mix of product and services offered in
the company's target markets. Merger Communications (Merger) is a
media relations firm employed by the Company. The statements and
opinions presented here represent the views of the Company, not
Merger, as the release is based on the information provided by the
Company. Merger and the Company believe that all information in this
release has been obtained from sources considered reliable, but can
not guarantee that the statements presented herein are accurate or
complete. Merger's compensation for its media relations services,
including preparation of press releases, consists of a monthly retainer
and warrants for the purchase of the Company's stock. Merger may
have a long position in the securities of the companies in which it
distributes information to the media, and Merger may be buying or
selling securities in the course of its regular business.
<<Business Wire, 03-04-99, 09:12 Eastern>>
CONTACT: Merger Communications Inc., Houston | David Drake,
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[Copyright 1999, Business Wire]
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