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To: Mark Fowler who wrote (116182)1/25/2001 9:19:03 AM
From: Victor Lazlo  Read Replies (1) | Respond to of 164684
 
Many Consumers Say No Thanks to 24/7 Internet

By Andrea Orr, Reuters, 1/24/2001

PALO ALTO (Reuters) - Has Internet fatigue set in? Some new data suggests
it has, and not just among the once enthused dot-com workers who have lost
their jobs and the investors who have lost their shirts.

Now it appears the typical Internet surfer may also be getting a little bored with
all the time spent in Internet chat rooms, news sites and stores -- time often
spent at the expense of other leisure activities like reading, watching television
or hanging out with real live people.

Nielsen/NetRatings last week reported a steep drop in individual surfing time
during December and said that for the past few months Web users have been
steadily spending less time online both at home and at work.

The ratings service said that there is typically a small seasonal drop in
December, but noted last year's decline was much more pronounced than
usual, when many people stayed connected even when they went on vacation.

The amount of time the average Internet user logged online fell a steep 15
percent between October and December to 14.9 hours from 17.5, Nielsen
found.

Other findings corroborated the trend. The average number of online sessions
per month dropped to 28 in December from 33 in October, and the number of
unique sites visited slipped to 17 from 20.

Moreover, the decline seemed consistent across all demographic groups.

''We checked by race, gender, age and location in the country, and there was
no subgroup that accounted for it,'' Sean Kaldor, vice president of e-commerce
at Nielsen/NetRatings, said.

Kaldor said that people spending less time at work around Christmas and
Thanksgiving usually produced a 5 percent decrease in Internet usage during
the holiday months. But, he added, ''this is the first time we've seen such a
significant drop.''

As much as the holidays were a factor in keeping would-be surfers offline,
Kaldor said the large drop last year suggests the novelty of the Internet is
wearing off.

''The fact that people decided to take a break from the Internet when they were
away from work, that's new and that's important,'' he said. ''If you're an
advertiser and you want to run an after-Christmas promotion, the Internet may
not be the best place to do it.''

Some analysts argue that simply counting the hours people spent logged on in
their homes or at the office is not the most thorough measure. As the Internet
becomes more ubiquitous, people are able to retrieve information in public
spaces, noted Abhishek Gami, an analyst at William Blair and Co. in Chicago,

who said he recently found an Internet screen in an elevator.

But Gami and others think there is something to the Nielsen numbers, and say
no one should be all that surprised by them.

The drop in the amount of time spent online came as more and more
consumers were connecting to the Internet for the first time. If it took them this
long to get connected in the first place, you have to figure they are not the
most technically inclined people.

''In the mainstream, people are just not as interested in the Internet as a thing
unto itself. They see it more as an application for a quick check of some
information, not as a hobby,'' Gami said.

''I doubt the people who were using the Internet a year ago are using it any less
today. It's just that the people who are coming online now are not real Internet
junkies, and they are dragging the average lower.''

''It shouldn't really be a reason for concern, except for those people who built
business models assuming the average person would spend 40 hours a week
online,'' he added. ''Of course a lot of people did build those business models.''


digitalmass.boston.com



To: Mark Fowler who wrote (116182)1/25/2001 11:31:23 AM
From: H James Morris  Read Replies (3) | Respond to of 164684
 
Mark, I sold Cmrc this morning at 34 1/4 (cost 27), because growth companies don't lay-off people.
>1/25/01 9:02 AM ET

Business-to-business company Commerce One (CMRC:Nasdaq - news) was off 0.7% in preopen Island trading after confirming that it recently fired 150 people. A week ago, the company beat the Street's earnings estimate and boosted its 2001 revenue guidance.