Article at a glance:

Can broadband save Internet media?

The Internet-media faithful cling to the hope that rising broadband penetration rates will revive advertising-based on-line business models. In no sector does this hope stand a better chance of realization than in on-line entertainment, which benefits most from the widespread adoption of broadband. Yet a study of 20 on-line entertainment categories shows that increases in page views and in the amount of time users spend on-line won’t generate a big jump in advertising revenue.

The take-away

Broadband won’t save most ad-based business models, but all isn't lost for Internet media. Increases in usage could make it possible to develop new business models—business models that don't rely on advertising.