State of Online Media in SA By Arthur Goldstuck 14 August 2008

About World Wide Worx Research: All stats in this presentation from our primary research into IT and telecoms, Internet, mobile technologies, technology in business strategy Key projects: Internet Access in SA Digital media in SA Digital banking in SA Online Retail in SA Mobility – consumers, corporates, SMEs SME Survey: 5 000 respondents annually

Research:

All stats in this presentation from our primary research into IT and telecoms, Internet, mobile technologies, technology in business strategy

Key projects:

Internet Access in SA

Digital media in SA

Digital banking in SA

Online Retail in SA

Mobility – consumers, corporates, SMEs

SME Survey: 5 000 respondents annually

Reality check: Internet user base 2000: 2 416 000 (32% growth) 2001: 2 886 000 (20%) 2002: 3 098 000 (7%) 2003: 3 283 000 (6%) 2004: 3.5m (6%) 2005: 3.6m (3%) 2006: 3.75m (3%) 2007: 3.96m (6%) 2008: 4.4m (8%)

2000: 2 416 000 (32% growth)

2001: 2 886 000 (20%)

2002: 3 098 000 (7%)

2003: 3 283 000 (6%)

2004: 3.5m (6%)

2005: 3.6m (3%)

2006: 3.75m (3%)

2007: 3.96m (6%)

2008: 4.4m (8%)

New Reality: The experience curve Internet users with 5 years experience: 2001: 354 700 2002: 696 620 (96% growth) 2003: 1 266 235 (81%) 2004: 1 820 000 (44%) 2005: 2 416 000 (32%) 2006: 2 886 000 (20%) 2007: 3 098 000 (7%) 2008: 3 28m (6%) 2009: 3.5m (6%)

Internet users with 5 years experience:

2001: 354 700

2002: 696 620 (96% growth)

2003: 1 266 235 (81%)

2004: 1 820 000 (44%)

2005: 2 416 000 (32%)

2006: 2 886 000 (20%)

2007: 3 098 000 (7%)

2008: 3 28m (6%)

2009: 3.5m (6%)

Sins of the past Captured 24 November 2003

Captured 13 July 2004

Captured 27 December 2004

Reality check: Online retail in SA 2000: R82-million 2001: R162-million 2002: R252-million (55%) 2003: R350m (40%) 2004: R470m (33%) 2005: R540m (20%) 2006: R688m (30%) 2007: R928m (35%) 2008: R1,2-bn +

2000: R82-million

2001: R162-million

2002: R252-million (55%)

2003: R350m (40%)

2004: R470m (33%)

2005: R540m (20%)

2006: R688m (30%)

2007: R928m (35%)

2008: R1,2-bn +

New Reality: The Experience Curve World Wide Worx Internet users in South Africa, 2008 Online banking customers Online retail customers Broadband emerges 6 Years on the Internet: The Experience Curve

When mental bandwidth runs out Captured 27 September 2006

Source, Internet Access in SA 2007

Source: Internet Access in SA 2007

Source: Internet Access in SA 2007

Online Media in SA survey First conducted in 2006 2008 study now under way With the cooperation and endorsement of the Online Publishers Association But open to all online publishers Early indications suggest massive growth Is the dam breaking?

First conducted in 2006

2008 study now under way

With the cooperation and endorsement of the Online Publishers Association

But open to all online publishers

Early indications suggest massive growth

Is the dam breaking?

13 August 2008

13 August 2008

13 August 2008

Ash can finally afford that drink 13 August 2008

Early indicators from new study The 2003-6 data is based on 2006 study The trend lines for 2007-2010 are still an educated guess Based on numbers provided informally by key players Full data available in late September

The 2003-6 data is based on 2006 study

The trend lines for 2007-2010 are still an educated guess

Based on numbers provided informally by key players

Full data available in late September

Key trends predicted in 2006 The emergence of RSS (“really simple syndication”, a relatively new standard delivery protocol for news feeds). Forecast to rise from 28% in 2006 to no less than 72% in 2008, making it the new killer application of content delivery Blogs to rise from 24% in 2006 to 56% in 2008

The emergence of RSS (“really simple syndication”, a relatively new standard delivery protocol for news feeds).

Forecast to rise from 28% in 2006 to no less than 72% in 2008, making it the new killer application of content delivery

Blogs to rise from 24% in 2006 to 56% in 2008

The next revolution In 2009, the Seacom undersea cable will increase international bandwidth 40-fold In 2010, this will treble again Bandwidth from luxury to commodity For media, this opens a new world of possibility, expansion and interaction Advertising industry has no choice: it must be there, reboots and all

In 2009, the Seacom undersea cable will increase international bandwidth 40-fold

In 2010, this will treble again

Bandwidth from luxury to commodity

For media, this opens a new world of possibility, expansion and interaction

Advertising industry has no choice: it must be there, reboots and all

The big picture Courtesy Telegeography

The small picture Courtesy Telegeography

The old picture 1901 Eastern Telegraph Company System Map

The next picture? Courtesy Steve Song, Many Possibilities “ Sub-saharan Africa Undersea Cables in 2010 – maybe”

Thank you Arthur Goldstuck (011) 7827003 [email_address] www.worldwideworx.com Gadget: www.gadget.co.za Urban legends blog: thoselegends.blogspot.com Business strategy blog www.thebigchange.com

Arthur Goldstuck (011) 7827003

[email_address]

www.worldwideworx.com

Gadget:

www.gadget.co.za

Urban legends blog:

thoselegends.blogspot.com

Business strategy blog

www.thebigchange.com