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Press Releases
Press Releases Thursday, September 13, 2001   
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Second Internet Revolution -- Now Showing!

GUILDFORD, England, Sept. 13 -- ARC Group ( http://www.arcgroup.com ) today warned that the `Napster style` downloading and swapping of digital video has now become firmly rooted on the internet, and is spreading rapidly across the large early adopter community.

The free availability of advanced compression technologies such as DivX coupled with the file sharing ability of `Gnutella` type protocols (fully distributed and `legal proof`) together offer the mass market the ability to download and share very large multimedia files, and view them at full screen.

Tony Crabtree, ARC Group Consultancy Manager said that "whilst the industry continues to be absorbed by its own internal issues, on the ground, users are rapidly acquiring `free` digital content on a mass scale. Once again users are calling the shots ... only this time it`s expensive video content, not just music." Crabtree continues, "however, on the face of it, what appears to be a threat to the industry, may in reality, be the very thing that re-ignites the internet and drives us to the broadband revolution that we have all been talking about. I firmly believe that applications like SMS and MP3 (that capture the user`s imagination), will drive the next phase of internet development."

This is in the wake of the recent announcements by the leading Hollywood Studios of their support for the `Moviefly` video-on-demand concept. Whilst the studios have at last made a significant step towards digital content delivery, they may have allowed a grass roots movement to become established.

These findings form part of a newly released strategic report, "Content and Applications for Broadband and Digital TV" from ARC Group. According to this study the total number of households accessing streaming content will increase fivefold between 2001 and 2006 with 310m households viewing content via narrowband and broadband access. By 2006, 165m households will be broadband enabled which will account for over 50% of the streaming media audience. Broadband will be dominated by entertainment with 194m households accessing this type of content and applications. Music will be the leading broadband content genre with almost 140m users in 2006 due to the plethora of internet radio stations, exclusive webcasts, MP3 and peer-to-peer file sharing.

This report covers the following topics:
* Business Models
* Home Platform Evolution
* Content delivery
* Deployment
* Application Development
* Content Development
* Detailed market forecasts by technology, region, application and content genre to 2006

Notes:
ARC Group ( http://www.arcgroup.com ) publishes in-depth strategic reports and industry surveys and provides consultancy on broadband access, digital broadcasting, wireless internet, wireless technologies and infrastructure, telematics and optical communications. For more information on this report or any of ARC`s other products and services, please contact Ellie Lux on +44-1483-543-505 (elizabeth.lux@arcgroup.com).

CONTACT: Ellie Lux of ARC Group, +44-1483-543-505 orelizabeth.lux@arcgroup.com

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