Jupiter Forum Defines Interactive Knowledge; Best Near-Term Revenue Opportunities Lie in Professional Training and Education

Business Wire, Sept 26, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 26, 2000

The intersection of online education, training, and continuing learning will create a new market - Interactive Knowledge - according to Jupiter Research, the worldwide authority on Internet commerce. But as a mainstream consumer service, Interactive Knowledge is too broad an offering, and suppliers must focus on more targeted affinities or genres to build an audience. Leading Internet, media, and education pioneers gathered in New York City at Columbia University Thursday, September 21, 2000 to address the issues facing this market at Jupiter's premier Interactive Knowledge Forum.

Thomas Krens, director of the Guggenheim Museum keynoted the one-day event. Several tightly focused roundtables featured Martin Nisenholtz, CEO, New York Times Digital; Steven Brill, CEO, Brill's Content and Contentville.com; Gene DeRose, president and COO, Jupiter Media Metrix; Laura Campbell, executive director, Library of Congress National Digital Library; Dr. Terry Crane, vice president, education products, AOL Education Products, and Ann Kirschner, Ph.D., president and CEO, Fathom Knowledge Networks among other participants.

"Bringing together leaders from diverse industries to examine the crossroads of the Internet and education made the Interactive Knowledge Forum a groundbreaking event," said Jupiter Media Metrix's DeRose. "Jupiter Research looks forward to further exploration of the opportunities in this market."

Jupiter analysts presented the findings of their research regarding the unique opportunities and challenges that the emerging interactive knowledge marketplace presents. According to Anya Sacharow, an analyst with Jupiter Research, sites should focus on affinity programming and pursue a mix of revenue streams from paid content, sponsorship, merchandising, and syndication. A recent Jupiter Consumer Survey found that only 24 percent of online consumers prefer to receive educational content from portals, indicating viable circumstances for specialized sites. With adults making up 78 percent of the online population, the largest near-term revenue opportunity is in professional continuing education.

Although online education ventures should pursue a mix of revenue streams, the bulk of potential revenue lies in advertising and merchandising. "Courses targeted at continuing education, with supplementary physical materials, will probably attract consumers' dollars," said Sacharow. "Interactive knowledge sites are good platforms for the sale of books, software, periodical subscriptions, trips, and complementary merchandise."

Speakers at the forum stressed the growth of learning institutions creating online international knowledge content. Krens outlined his vision of the future for the Guggenheim Virtual Museum online that would serve as a "cultural portal" through partnerships with other museums, including The State Hermitage Museum in St. Petersburg, Russia.

Illuminating conversations addressed the potential and problems of developing online education. AOL's Krane spoke about the role online learning can play in solving some of the problems in the US school system, such as making advanced placement courses available to high school students who live in school districts where the courses are not offered. At the same time, panelists discussed the importance of capturing the community and programs of traditional learning in the online experience, but also stressed that the Internet could never replace certain aspects of established schools such as socialization. Andy Rosen, CEO, Kaplan Inc., which offers test preparation services, discussed one challenge of online education - teachers must spend more time, not less with students, because an e-mail relationship is conducive to one-on-one attention.

Brill, of Brills' Content and Contentville and the Times's Nisenholtz addressed the issue of determining and protecting intellectual copyright when materials such as text, video, photos, and transcripts are distributed on the Internet freely.

"Fathom was excited to see the enthusiasm and interest generated around key issues of online learning at the Jupiter Interactive Knowledge Forum," said Fathom's Kirschner. "The Forum clearly demonstrated the emerging power of the e-knowledge sector in which Fathom seeks to play a prominent role."

Jupiter Research's Interactive Knowledge Forum attracted close to 200 attendees, representing major universities and schools; leading museums, libraries, research institutes, and cultural institutions; business and financial institutions; media content and publishing companies; leading online education ventures; and educational software companies. Fathom Knowledge Network and Sun Microsystems sponsored the event. Media sponsors were Eduventures.com, eduport.com, New York Times Digital, and The Chronicle of Higher Education.

About Jupiter Research

Jupiter Research, a Jupiter Media Metrix Company, is the worldwide authority on Internet commerce, providing strategic analysis and insight to give businesses a competitive advantage in the complex and rapidly changing Internet economy. Jupiter Research provides its business-to-business and business-to-consumer clients with comprehensive views of industry trends, accurate forecasts and today's best practices, all backed by proprietary and industry standard data. Jupiter Research services cover broad business issues and industry and region-specific topics, providing written analysis, supportive data and access to expert analysts. Visit us at www.jup.com for more information.