A mistake, in my opinion, that many a portal has already learned the hard way. A study commissioned by Barron's suggests this strategy will soon send many of Internet companies the way of the DeLorean. The study predicts that within the next year over 50 Internet companies, including online music store CDNow and online grocer Peapod, will run out of money. Plus, the report predicts that attempts by most of these to raise cash by issuing more stocks or bonds will fail. In other words, it's time to start showing some profits.
Problem is many more obstacles await.
That's certainly how it's been pitched to the public. It's degenerating into little more than a direct marketing platform. So much for the ringing endorsements. Once again the problem has much to do with hype. Businesses and consumers have been convinced that the Internet is a Mecca of interactivity.