MEDIA-I: Further consolidation to hit research sector

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the company had withdrawn plans to launch services in China.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