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Online Growth? Just You Wait
Online Growth? Just You Wait-January 2024
Jan 3, 2025 4:41 PM

  OK, so maybe it's not so good now, but just you wait.... Online gaming is going to make somebody rich someday. Well, according to Jupiter Communications at any rate.

  The research firm issued a report that called 1997 "a dismal year for online game companies," with those companies bringing in US$8 million in advertising in 1997. That amount will grow to $465 million by 2002, says Jupiter, corresponding to a tremendous growth in the percentage of people under age 18 who play those games. Jupiter says that the under-18 demographic makes up just 7 percent of the online game audience today, but that those under 18 will be 60 percent of the online gaming audience come 2002.

  The company predicts that a combination of subscriber- and advertising-supported sites will be the most successful over the next five years.

  "Though advertising will account for the greatest source of revenue by 2002, subscription revenues run a close second," said Mark Mooradian, group director of consumer content at Jupiter. "And this still won't guarantee that games sites realize a profit. Companies need to redefine their business plans to attract the predominant demographic and must phase out pay-per-time and pay-per-play revenue models, except as options to a subscription plan."

  Jupiter released these findings in its Internet Games: Five Year Outlook report.

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