Understating the Internet’s Contribution to the Global Economy

The Economist writes,

MUCH of the world may still (or again) be in recession, but the internet keeps growing—and so does its economic weight. In the G20 countries, the internet economy will grow at more than 10% annually for the next five years and by 2016 reach $4.2 trillion, or 5.3% of GDP—up from $2.3 trillion and 4.1% in 2010, according to a recent report by the Boston Consulting Group (BCG). But there are big differences between countries. Britain leads the pack. Its internet economy is now bigger than its construction and education sectors, mainly thanks to the popularity of e-commerce. To paraphrase Adam Smith, the country has become a nation of digital shopkeepers. China and, to some extent, India stand out thanks to internet-related exports in goods and services, respectively. South Korea and Japan are also strong in both e-commerce and exports. Europe punches below its weight, mainly because its internet economy is held back by a lack of a single digital market. If the European Commission succeeds in creating one, the old continent may be able to pull ahead of the new one by 2016.

My research is done principally through the internet and this has been facilitating much of my transactions executed on a traditional non-internet based platform. The newsletters I send to my clients have also been internet based.

Aside from my newsletters, the web perhaps also plays a role in the information acquisition of my clients for them to decide on their financial markets transactions—but the degree of application may likely to be different.

Have these been captured by statistics? Apparently not.

Attempts to quantify the internet’s contribution to the economy has been grossly misleading for the simple reason that much of what the internet contributes—access to information, knowledge, connectivity, communications and the ensuing productivity it brings—cannot be measured.

Testament to these has been the impact of the internet to the Arab Spring or popular Middle revolts of last year.

Professor of business and technology Soumitra Dutta in an interview with Knowledge@wharton says that the internet has enabled changes in people’s social relationships and norms that has contributed to last year’s Arab Spring upheavals.

Technology has empowered individual citizens, and of course this pushes against various constraints, whether it is political constraints, or gender constraints. The same thing is happening in the rest of the world, by the way, the Middle East is not unique in this. So what this calls for is not a retreat from technology, but a more enlightened approach to understanding how technology interweaves with social values and norms. Eventually, social norms are going to be influenced and changed by widespread use of technology, but that's the way society largely develops.

And to repeat a quote which I earlier posted from Jeffrey Tucker,

That the Internet has vastly increased productivity is the understatement of the century. The Internet has given birth to products and services that have never before existed — search, online advertising, video games, web-based music services, online garage sales, global video communications. Moreover, the main beneficiaries have been old-line industries that seem to have nothing to do with the Internet.

The most difficult-to-quantity aspect of digital media has been its contribution to the sharing of ideas and communication throughout the world. This has permitted sharing and learning as never before, and these might be the single most productive activity in which the human person can ever participate. The acquisition of information is the precondition for all investing, entrepreneurship, rational consumption, the division of labor and trade…

No amount of empirical work can possibly encapsulate the contribution of the Internet to our lives today. No supercomputer could add it all up, account for every benefit, every increase in efficiency, every new thing learned that has been turned to a force for good. Still, people will try. You will know about their claims only thanks to the glorious technology that has finally achieved that hope for which humankind has struggled mightily since the dawn of time.

The appeal to quantify the internet into statistical accounts falls into the same fallacious trap as in the treatment of human action as natural sciences.

As Mark Twain scornfully said,

Lies, damned lies and statistics.

Mobile Internet is the Future

Internet and mobile phones are in the process of (media) convergence

From comscore.com

“2011 proved to be a groundbreaking year for the mobile industry, with smartphones hitting the mainstream, tablets emerging as a formidable fourth screen, and consumers increasingly integrating mobile behaviors into their lifestyles. As the industry continues to innovate and more consumers look to multiple devices and platforms to consume digital media, we expect the mobile and connected device landscape to be shaken up even further in 2012,” said Mark Donovan, comScore Senior Vice President of Mobile. “As mobile channels present a more personal, social, and ubiquitous experience to consumers, advertisers and publishers have an opportunity to better engage target audiences, given an understanding of how to connect and leverage the unique characteristics of these emerging platforms.”

Key findings highlighted in 2012 Mobile Future in Focus include:

• Smartphones Gain Adoption Among ‘Early Majority’, Driving Mobile Media Consumption
  Nearly 42 percent of all U.S. mobile subscribers now use smartphones, along with 44.0 percent of mobile users across the EU5 (comprised of France, Germany, Italy, Spain, and the UK). Mobile media use – defined as browsing the mobile web, accessing applications, or downloading content – saw increased growth as a result, surpassing the 50-percent threshold in many markets, supported by the proliferation of high-speed networks and increased public WiFi availability.

• Smartphone Platform Wars Intensify As Android and Apple Take the Lead in Most Markets
  The Google Android and Apple iOS smartphone platforms emerged as the leaders of the U.S. smartphone market in 2011, with Android just a few points shy of capturing half of the smartphone market and iOS accounting for nearly 30 percent of the market. In the EU5, Android saw similarly significant gains, unseating market leader Symbian in 3 out of the 5 European markets measured.

• Surge in Mobile App Usage Shapes a Dual Mobile Browsing Experience, Fueling Category Growth
  In 2011, both the U.S. and EU5 saw the growth in mobile app use exceed the growth in mobile browser use, leading to both markets seeing the same percentage of their mobile audience use both apps and browsers to access mobile media. Health ranked as the fastest-growing mobile media category in the U.S. in 2011, followed by Retail and other commerce-related categories such as Electronic Payments and Auction Sites.

• Mobile Retail Information Leads to Emergence of Smartphone Shopping Behaviors
  More than half of the U.S. smartphone population used their phone to perform retail research while inside a store in 2011, illustrating the emergence of savvy smartphone shoppers who bring online shopping behaviors in-store – a trend seen in other markets as well. At the end of 2011, nearly 1 in 5 smartphone users scanned product barcodes and nearly 1 in 8 compared prices on their phone while in a store.

• Mobile Devices Fuel Social Networking On-The-Go, Driving Real-Time Online Interaction
  64.2 million U.S. smartphone users and 48.4 million EU5 smartphone users accessed social networking sites or blogs on their mobile devices at least once in December 2011, with more than half of these mobile social networking users accessing social media almost every day. While mobile social networking users showed the highest propensity to read posts from people they knew personally, more than half of those in the U.S. and nearly half in the EU5 also reported reading posts from brands, organizations, and events.

• Mobile Connectivity and Connected Devices Encourage Cross-Platform Digital Media Consumption among ‘Digital Omnivores’
  Tablets quickly rose in popularity in 2011, taking less than two years to account for nearly 40 million tablets in use among U.S. mobile users and outpacing smartphones which took 7 years to reach the same. By the end of 2011, nearly 15 percent of U.S. mobile users also had tablets – a trend seen across other markets as well.

Download the complimentary copy of 2012 Mobile Future in Focus here

Online Honesty

It is interesting to know that people seem to be more honest in an impersonal setting like the online environment

Explains another favorite author of mine, Matt Ridley at the Wall Street Journal (bold emphasis mine)

It is now well known that people are generally accurate and (sometimes embarrassingly) honest about their personalities when profiling themselves on social-networking sites. Patients are willing to be more open about psychiatric symptoms to an automated online doctor than a real one. Pollsters find that people give more honest answers to an online survey than to one conducted by phone.

But online honesty cuts both ways. Bloggers find that readers who comment on their posts are often harshly frank but that these same rude critics become polite if contacted directly. There's a curious pattern here that goes against old concerns over the threat of online dissembling. In fact, the mechanized medium of the Internet causes not concealment but disinhibition, giving us both confessional behavior and ugly brusqueness. When the medium is impersonal, people are prepared to be personal…

Deep in our psyches, the act of writing a furious online critique of someone's views does not feel like a confrontation, whereas telling them the same thing over the phone or face to face does. All the cues are missing that would warn us not to risk a revenge attack by being too frank.

The phenomenon has a name: the online disinhibition effect. John Suler of Rider University, who coined the phrase, points out that, online, the cues to status and hierarchy are also missing. Just like junior apes, junior people are reluctant to say what they really think to somebody with authority for fear of disapproval and punishment. "But online, in what feels like a peer relationship—with the appearances of 'authority' minimized—people are much more willing to speak out or misbehave."

Internet flaming and its benign equivalent, online honesty, are a surprise. Two decades ago, most people thought the anonymity of the online world would cause an epidemic of dishonesty, just as they thought it would lead to geeky social isolation. Then along came social networking, and the Internet not only turned social but became embarrassingly honest. The greatest perils most people perceive in their children's social networking are that they spend too much time being social and that they admit to things that will come back to haunt them when they apply for work

My comments:

Much of our actions seem to be guided by social signaling.

Popular impression about the effects of social networking have hardly been accurate.

I find this article very relevant. I find it easier to discuss or debate online, perhaps for the same reasons cited: cues to status and hierarchy become less of an influence.

But online honesty does have harmful effects too, deficiency in diplomatic expression especially against the powers that may lead to undesirable or even adverse personal consequence such as the arrests or incarceration of bloggers in South Korea or Cuba.

Imprudent social networking remarks (in Facebook or in Twitter) have also costs people jobs and personal relationships.

Mary Meeker on Global Internet Trends: Prepare for a Lift off!

Former Morgan Stanley's now KPCB's technology analyst Mary Meeker with her fabulous presentation of the current and prospective internet trends.

Notice how the deepening of penetration levels and the widening of connectivity has been changing people's lifestyles globally. Importantly trade and commerce is part of that trend (p.50).

Many analysts tend to underrate this ongoing seismic shift, we shouldn't.
KPCB Internet Trends (2011)

Video: Consumer Surplus From Internet and Mobile Technology

Consumer surplus, according to Wikipedia.org, is the "difference between the maximum price a consumer is willing to pay and the actual price they do pay. If a consumer would be willing to pay more than the current asking price, then they are getting more baenefit from the purchased product than they spent to buy it they are getting more benefit from the purchased product than they spent to buy it." (italics added; hat tip Professor Russ Roberts)



The video shows how people tend to see consumer surplus from modern technology powerful enough for them to 'refuse' a ($1 million) monetary offer in exchange for withdrawing access to these technologies. [my guess is that polls aren't taken seriously]

Yet, ironically, the same people in the video would wait for falling prices from new innovative products in order to adapt to them.

Also, the video shows the vital role played by the "rich" in the diffusion of these newly discovered technologies into society, or how the rich, as buyers of the first order, creates incentives for producers to mass produce for widespread use.

The beauty of laissez faire capitalism.

Asia Leads In Web Connectivity

Asia is the largest and the fastest growing region in terms of web connectivity.

That's according to the stats from comScore as shown below

(all bold highlights mine)

``In September 2009, the Internet population in the Asia-Pacific region reached 484 million visitors age 15+ that accessed the Internet from a home or work location, an increase of 22 percent from the previous year. With nearly half a billion people online, the region now accounts for 41 percent of the total 1.2 billion person global Internet audience. China, home to the largest Internet population in the world, experienced a 31-percent increase to 220.8 million, making it the fastest-growing Internet country in the region. Japan saw its online population surge 18 percent to 68.3 million, while India climbed 17 percent to 35.8 million users. "

Here is the breakdown of the growth stats of each country...

Again from comScore,

“Asia is not only home to the largest Internet population in the world, but it is also one of the fast-growing,” said Will Hodgman, comScore executive vice president for the Asia-Pacific region. “With most markets in the region experiencing double-digit growth, marketers and advertisers have the opportunity to capitalize on the potential of the online channel to reach and engage a surging number of people engaging in a variety of consumer activities online, including reading content, watching video, playing online games, engaging with brands, conducting financial transactions and making online purchases.”

To access the comScore presentation here

Let me add that web connectivity will likely enhance productivity growth and market pricing efficiency via ease of access to information thereby reducing communication, research and transaction costs.

In addition, web connectivity is likely a source of friction or can serve as deterrent against pervasive government intervention by virtue of free or liberal access to information.

With reduced government intervention web connectivity is likely to power more trade among nations.

Closing The Technology Divide Via Mobile Phones

The Technology Divide is narrowing.

This from the Economist, (all bold highlights mine)

``MOBILE phones have proved to be a boon for the poor world. An extra ten mobile phones per 100 people in a typical developing country boosts growth in GDP per person by 0.8 percentage points, according to a recent study. Mobile-phone subscriptions in poorer countries accounted for just a quarter of the global stock in 2000, but had risen to three-quarters of the 4 billion total by the start of this year. The next challenge is to expand the use of mobile technology to access the internet. Despite huge strides in producing cheap netbooks that connect via mobile networks, the mobile phone may still provide the cheapest way to access the internet in the developing world."


Communications functions as vital instrument in the dissemination of information from which establishes money prices via choice, action and coordination.

Hence, the trend of wider adoption of technology in emerging markets signifies of the prospects of enhanced productivity and much improved market efficiencies to a broader segment of world population. This should translate to more capital accumulation and upliftment of economic status for many.

If we should “follow the money” to ascertain rewarding investment themes then mobile and internet use could serve as great indicators for economic growth.

Global Internet and Economic Trends in Charts by Mary Meeker

Check out the great stuff from Mary Meeker of Morgan Stanley, whose slide deck of charts deals with global technology and economic trends (hat tip Paul Kedrosky)

Just two examples...
Philippines leads in the technology usage of Microtransactions via SMS or text messaging...

as the industry is backed by a 57% Penetration level in mobile subscription

check out the rest of her interesting charts here...


Meeker Tech '09 - Get more Business Plans

Updated: Democratizing Knowledge Revolution Via $10 Laptops (Still A Dream)

India recently announced that it would be introducing $10 (Php 500) laptop computers soon.

Although it is still unclear as to the real offering price as reports vary, BBC says ``Early reports of the cheap laptop suggested that it would cost only 500 rupees (£7). However, this could be a mistranslation, because transcripts of the speech, in which it was unveiled, mentioned it costing $10 (£7) but this was later corrected to $100 (£70)”.

Albeit the physorg.com says, ``The $10 laptop project is the product of a collaboration among institutions including the Vellore Institute of Technology, the Indian Institute of Science, and IIT-Madras. The project began about three years ago in response to the proposed $100 laptop (the "One Laptop Per Child" project), an idea from MIT's Nicholas Negroponte, which was going to cost $200. Currently, the $10 laptop is projected to cost $20, but India's secretary of higher education R. P. Agarwal hopes that price will come down with mass production. The $10 laptop will be equipped with 2 GB of memory, WiFi, fixed Ethernet, expandable memory, and consume just 2 watts of power.”

The goal of the $10 laptop is ideally meant to broaden the access of computers for ‘poor’ school children around the world. However, considering the onus from the heavy doses of stimulus being applied today to prop global economies, subsidies from governments to finance its distribution would probably be limited. This means successfully bringing prices to this level can only be achieved if it will be driven by the markets.

Nonetheless, the positive outcome from a market based distribution of these inexpensive “socialized laptops” is likely to have a huge impact on laptop and PC prices and sales globally. Notwithstanding the prospects of exponential growth of web based usage.

To give you an idea of the existing industry penetration levels, according to comScore World Metrix, ``global Internet audience (age 15 and older from home and work computers) has surpassed 1 billion visitors in December 2008”.

The breakdown of global audience by region as follows:

Again from comScore World Metrix, ``The Asia-Pacific region accounted for the highest share of global Internet users at 41 percent, followed by Europe (28 percent share), North America (18 percent share), Latin-America (7 percent share), and the Middle East & Africa (5 percent share).”

So based on geographic distribution, growth is likely to favor Asia.

And which country holds the most users?

According to the Economist, ``THE number of people going online has passed one billion for the first time, according to comScore, an online metrics company. Almost 180m internet users—over one in six of the world's online population—live in China, more than any other country. Until a few months ago America had most web users, but with 163m people online, or over half of its total population, it has reached saturation point. More populous countries such as China, Brazil and India have many more potential users and will eventually overtake those western countries with already high penetration rates. ComScore counts only unique users above the age of 15 and excludes access in internet cafes and via mobile devices.

To quote Forbes Nanotech's brilliant Josh Wolfe in Airbrushing Airwaves & The Adjacent Possible ``The history of technology has been one of displaced labor. New jobs are birthed as old ones die. Talent is embedded in technology. And technology gets further embedded in advanced materials."

The $10 laptop is likely to democratize the knowledge revolution globally.

Update: From hype to dud, the supposed 'laptop' turns out to be another computing device....

This from the Times of India ``The hype surrounding the $10 laptop ``prototype'' with two GB RAM turned out to be a joke when the department of Human Resources Development announced — during its inauguration in the temple town of Tirupati — that it wasn't a laptop at all but a computing device.

While the world eagerly waited for the launch of the $10 laptop — designed by students of Vellore Institute of Technology, scientists in Indian Institute of Science, Bangalore, IIT-Madras, UGC and MHRD — it wasn't a patch on the $100 laptop made by MIT.

The MHRD officials said the price was working out to be $20 but with mass production it was bound to come down to $10 (Rs 500) and thus become affordable for every student in India.

But netizens were disappointed when the ``laptop'' turned out to be nothing more than a computing device along with a hard disk with e-books, e-journals and relevant educative material through the state-art-of-the-art ``Sakshat'' portal.

Why Doomsday Forecasting And Bad News Sells: Learning From the Black Hole Machine Experience

``You gain strength, courage, and confidence by every experience in which you really stop to look fear in the face. You are able to say to yourself, 'I have lived through this horror. I can take the next thing that comes along.' You must do the thing you think you cannot do." -- Eleanor Roosevelt (1884-1962) former First Lady of the US

Bad news does sell! It had been a fortuitous event to have seen it happen first hand. And it was not just bad news, but a sci-fi version horror story as well.

It was not to my expectation that such an article would command tremendous response when I posted at my blog in the late afternoon of September 9^th, about the next day launching of the world’s largest ever scientific experiment called the Large Hardon Collider (LHC).

“Doomsday” was the battlecry of some the critics, see Will Tomorrow Be Doomsday? “Black Hole” Machine Switches On., who vehemently argued that any glitch encountered from such experiment could lead to an insurmountable growth of man made “black hole” that would eventually “consume” the world; our real time Armageddon.

And I thought of sarcastically relating such theme to the financial world: Financial pundits promoting for a global meltdown/depression could have perhaps wrongly premised their theme-instead of selling for financial or economic reasons, selling should have been recommended as the best approach to monetize on everything we own to enjoy the last moments of our lives (that is if there would be any buyers at all).

Figure 1: sitemeter.com: BAD News/Horror Story Causes Readership Spike!

When I checked on my blog counter (sitemeter.com) on September 10^th, I was stunned by the number of hits (which had spiked by fourfold) registered mostly from the said article as shown in Figure 1.

It was enough proof that many people can be easily swayed by horror stories!

Why People Love Horror Stories or Bad News

Some scientific research shows that the attachment/addiction to horror movies are partially due biological reasons such as “anxiety disorders” which carries either a genetic component or influenced by the environment where the trauma from horror movies results to the “release of opiate enorphins” or the revving up “the body's sympathetic nervous system” (Swedish.org).

Others say that scary movies could represent our legacy of “tribal rite of passage.” Dr. Glenn Sparks of Perdue University quoted by medicine.net ``There's a motivation males have in our culture to master threatening situations," Sparks says. "It goes back to the initiation rites of our tribal ancestors, where the entrance to manhood was associated with hardship. We've lost that in modern society, and we may have found ways to replace it in our entertainment preferences". In other words, enduring hardships (from horror movies) implicitly signifies as kind of psychological “ego” booster.

For others, it’s all about our alternative emotional safety valve outlet or other means to ease our aggressive impulses. From MSN’s celebrated financial pundit Jim Jubak,

``Sigmund Freud, Carl Jung and Bruno Bettelheim all theorized that we read fairy tales about evil stepmothers, parental abandonment in dark woods and child-eating witches to help us express and then cope with our darkest fears.

``The psychological value of these tales, in this theory, lies in the formulaic, repeated return to archetypical fears in what the reader knows -- even a reader as young as my 6-year-old daughter -- is a fiction. It also helps that, unlike real-life horrors, these tales usually have happy endings.”

Or similarly, why does bad news sells?

It can be little bit of Schandefreude (finding delight on other’s misery) or the release or ease of one’s stress by knowing of the suffering of others or social sympathy (misery loves company?) or occasionally “bad news is better than no news” (sciencedirect.com).

Overall, bad news or horror stories easily connect to the base human emotions of fear or anxiety or insecurity. These psychological aspects represents as an easy way to sell information (or even TV programs -e.g. reality TV as Fear factor!).

What lessons can be learned?

Incidentally, my blog (inspired from kiddy blogs then) had been originally setup for archiving purposes (where I can retrieve or search back issues faster) and secondarily, for public consumption. Although I’ve got a relatively small readership base, I hardly thought of it as a business model until the ad sponsorships came (yes, now I am also open to write for company blogs who are in need of outsource writers). Furthermore, I am delighted to see a small but increasing trend of readerships.

Nonetheless, since we knew that bad news sells all along, and if I were to simply aim for more readership in order to expand on my business model, then I would have concentrated on drilling on the bad news theme. But again, since my primary goal is to be profitable in financial market space, I would commit to assiduously to work on to be as objective as possible.

Famed self improvement author Dale Carnegie once said, ``When dealing with people, remember you are not dealing with creatures of logic, but creatures of emotion." (highlight mine)

Emotions such as fear, insecurity and anxiety can be used as Core Buying Emotions (CBE) or from a marketing perspective, a purchase trigger mechanism that could move people into action.

For some, doomsday forecasting can be an attractive CBE platform to promote one’s business. Whether or not such theme could be real world applicable isn’t perhaps the main concern by such promoters, but the business or popularity that could be generated from adhering philosophically to such dire scenarios.

The Black Hole Machine Encounter and Possible Investment Themes

As for the LHC or the “black hole machine”, we are not science experts to agree to disagree with the argument of the risks of its operation. One thing we know is that if the dissenters are right there won’t be anyone left to argue against it since we’d all be gone.

However from the benefit side, the Large Hadron Collider is suppose to uncover the underlying structure of the universe; the Higgs boson “elementary particles cause matter to have mass”, validity of the Grand Unification Theory (are electromagnetism, strong nuclear force and weak nuclear force a single manifestation?), existence of the superstring theory (quantum gravity) and dark matter and dark energy [Yes I am glad to learn that if scientific observation is accurate, the latter two forces dominate the Universe, from the BBC, ``The latest astronomical observations suggest ordinary matter - such as the galaxies, gas, stars and planets - makes up just 4% of the Universe. The rest is dark matter (23%) and dark energy (73%)].

Not only that, the LHC project will allow us to “accelerate computing cycles” (sciam.com) for “safely storing and then processing huge amounts of data” (guardian) which should revolutionize the way we utilize the internet and vastly enhance the research capabilities in the world of science.

In short, from an investment perspective, the LHC could be the nexus or the springboard for the next generation technology BOOM and a great enhancer of the lives of our children and hopefully including us, if scientific discoveries arrive on time and at affordable costs.

Decoupling in Cyberspace? Internet Traffic Begins to Bypass the US!

The following article by New York Times' John Markoff accounts of a monumental watershed development in the world's cyber traffic. This is a compelling read. Here are some excerpts...

``The era of the American Internet is ending.

``Invented by American computer scientists during the 1970s, the Internet has been embraced around the globe. During the network’s first three decades, most Internet traffic flowed through the United States. In many cases, data sent between two locations within a given country also passed through the United States.

``Engineers who help run the Internet said that it would have been impossible for the United States to maintain its hegemony over the long run because of the very nature of the Internet; it has no central point of control.

``And now, the balance of power is shifting. Data is increasingly flowing around the United States, which may have intelligence — and conceivably military — consequences...

``Ms. Claffy said that the shift away from the United States was not limited to developing countries. The Japanese “are on a rampage to build out across India and China so they have alternative routes and so they don’t have to route through the U.S.”

``Andrew M. Odlyzko, a professor at the University of Minnesota who tracks the growth of the global Internet, added, “We discovered the Internet, but we couldn’t keep it a secret.” While the United States carried 70 percent of the world’s Internet traffic a decade ago, he estimates that portion has fallen to about 25 percent.

``Internet technologists say that the global data network that was once a competitive advantage for the United States is now increasingly outside the control of American companies. They decided not to invest in lower-cost optical fiber lines, which have rapidly become a commodity business...

Important Lessons:

1. Government intrusions have been driving away internet traffic from the US.

2. The snowballing realization of the significance of the Internet to the economic sphere has prompted for diversification of internet providers.

3. Developing countries have been pouring massive capital to the industry more than the US

4. The growing diffusion of world internet usage world wide could be seen in the prism of "one of many indicators that the world is becoming a more level playing field both economically and politically." In short, decoupling!

5. Expanding global competition helps drive the spread of internet usage.

Will Internet TV Be A Dominant Trend?

Internet protocol television (IPTV) seems to be gaining ground worldwide.

chart courtesy of the Economist

This from the Economist...

“NEARLY a third of Hong Kong's households watch television via the internet, according to a new report from Telecommunications Management group, a consultancy. Because internet protocol television (IPTV) uses the same technology as that which links computer networks, smaller countries with high broadband penetration tend to have more subscribers. As well as plain old programmes, viewers can also enjoy other services such as on-demand video. So far, Europe accounts for over half of the world's subscribers.”