MEDIA-I: Net research firm cuts costs and operations

<p>SEOUL: Internet measurement company ACNielsen eRatings has </p><p>withdrawn its sales operations from Korea and other unspecificed Asian </p><p>markets in an effort to slash costs and remain competitive. </p><p><BR><BR> </p><p>US-based NetRatings, which operates in Hong Kong through its </p><p>joint-venture with ACNielsen, also announced that it would merge with </p><p>rival Jupiter Media Metrix to take control of the joint-venture. </p><p><BR><BR> </p><p>NetRatings will buy out ACNieslen's 80 per cent interest in eRatings.com </p><p>for US$16.4 million. It will also pay $71.2 million for </p><p>Jupiter Media Metrix, with the deal scheduled for confirmation early </p><p>next year. Jupiter Media Metrix is the result of the acquisition of </p><p>Jupiter Communications by Media Metrix in 2000. </p><p><BR><BR> </p><p>The moves signal a further consolidation in the internet research </p><p>sector, which has found it difficult to build up interest in web metrics </p><p>as regional economies deteriorate and confidence in the web wanes. </p><p><BR><BR> </p><p>ACNielsen eRatings.com managing director, Hugh Bloch, said: "We have </p><p>withdrawn from a number of markets and you could say we are redefining </p><p>our footprint. We have pulled our sales people from Korea and they have </p><p>been replaced with regional client and sales services, so we are still </p><p>serving that market. </p><p><BR><BR> </p><p>"The reason is cost. Part of it is that we believe this is the way to </p><p>work more efficiently and a lot faster. There is certainly a slowdown </p><p>and revenue is not going as projected to growth. Our aim is to become </p><p>the 'currency' of choice and this can help us get closer to our </p><p>objective. </p><p><BR><BR> </p><p>"There are economic reason for our withdrawal of sales in Korea. Despite </p><p>us claiming it to be the market leader, it was not financially </p><p>viable." </p><p><BR><BR> </p><p>Bloch declined to comment on the research company's withdrawal from </p><p>other regional markets, but emphasised the move was in line with the </p><p>researcher's "path to profitability". eRatings services measure internet </p><p>users in 30 countries worldwide, including China. </p><p><BR><BR> </p><p>He added that the merger was likely to highlight service and job </p><p>duplications in various markets. </p><p><BR><BR> </p><p>"If it happens, there will obviously be duplication and markets will </p><p>overlap. It also depends on the service mix in each market, but we will </p><p>ultimately want to save costs between us." </p><p><BR><BR> </p><p>According to Bloch, Hong Kong is the company's strongest market in the </p><p>region. The researcher claims it has an 80 per cent market share in </p><p>revenue terms. </p><p><BR><BR> </p><p>"Compared to Korea, in terms of total revenue not contracts, Hong Kong </p><p>is a lot stronger. But what we can expect is further consolidation in </p><p>the market. I still believe there are too many players in this space. </p><p>The revenue cannot afford so many players," he added. </p><p><BR><BR> </p>