MEDIA-I: Further consolidation to hit research sector

HONG KONG: Industry analysts are expecting further consolidation in the web measurement industry as Hong Kong-based iamasia ceased operations, resulting in the loss of 30 staff. Kevin Tan, chief executive officer of iamasia, said the "sudden" closure came after investors and shareholders failed to settle differences. "We have ceased trading. There is ongoing discussion and this has all been very sudden as we have been doing quite well in revenues. "The reason actually has very little to do with the market climate which makes it more of a shame. It was a disagreement between the shareholders and the investors which wasn't resolved," explained Tan. Launched in 1999 in Hong Kong, iamasia was initially backed by BDA China and Partners-e. Techpacific.com invested HK$2 million into the company and became its majority partner in July this year. Tan added that iamasia was still in the process of deciding what support would be extended to clients. The news follows a decision by ACNielsen eRatings to withdraw sales operations from Korea, Taiwan and Singapore. The company, along with competitor NetValue, also cut back staff numbers recently. Hugh Bloch, managing director at ACNielsen eRatings, denied rumours that the company had withdrawn plans to launch services in China. The web research firm recently received Government approval to conduct research in China. "We are continuing with our plans for China. They haven't changed. At the moment we are looking at the first quarter of next year," said Bloch. Bloch added that he expected further consolidation in the web research industry. "I think there is still room for further consolidation, and probably only room for one big player. What's imporant is not to devalue the service." Meanwhile, NetValue is hopeful the closure of iamasia and operational cut backs at Nielsen eRatings will give it a much-needed advantage in the short term. "It (business) is very quiet these days, but we are looking at market conditions and hoping to take benefit from it. The iamasia closure means there is one less competitor in the market. And with Nielsen (eRatings) withdrawing from certain markets, it could put us in a good position," said Christina Wong, sales and marketing manager at NetValue. "We just hope investors will see an opportunity to keep a presence here and maintain confidence. The end of the year is generally very quiet for business. We are seeing that the selling cycle is slower at the moment as clients are being careful not to take bold actions."

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