Free online content is on its way out, says Neil Jacobsohn, Johnnic e-Ventures CEO. Speaking at the launch of Executive Wednesday, a Johannesburg Metropolitan Chamber of Commerce-sponsored networking event, Jacobsohn expounded on the nature of the Internet, the dot-bomb debacle and his view of the way forward.
Laying blame at the door of much hyped and often misconstrued perceptions of the impact the Internet as a business tool would have on industry, Jacobsohn acknowledged the positive outcome of the events of the last 18 months.
Among others, he noted that the Internet has allowed access to a mammoth database of knowledge, the likes of which have never been seen before.
Despite its benefits, the failure of the Internet to fulfil promises of overnight wealth, and the resultant cautious approach to analysts and investor opinions is "a crisis in confidence in things we thought we understood," he said.
Jacobsohn likened the failure of bad businesses attempting to leverage off the hype to a fire, which he said has wiped out the vermin living at the roots of good businesses.
"It`s a natural and good phenomenon; the Internet remains a compelling prospect."
The biggest mistake that businesses have made in relation to the freedom of information on the Internet, noted Jacobsohn, is to assume that information also had to be available at no charge.
Jacobsohn commented on Absa`s free Internet service provision, saying it was a bold and risky move.
In a climate where SA`s newspaper groups are losing an estimated R50 million per year on free content, Jacobsohn predicts: "[Content-driven] Web sites won`t be free for much longer. The end of free Internet is in sight.
"As a group, we plan to charge for content before the year is out. We need to package our content along with services that add value, so that people are willing to pay [for it]."
Jacobsohn commented later that Internet portal Ananzi would probably be the only Johnnic offering that would remain accessible free of charge - primarily because of the function it serves both as a showcase of other Johnnic products, and as a foothold in the consumer market, which he believes has not yet taken off.
Other drivers in Johnnic e-Venture`s digital strategy include the burgeoning mobile communications market, and satellite and wireless technologies, which Jacobsohn believes are the solution for Africa`s connectivity problems.
"Sanity and a sense of value are returning...the challenge is not to allow Africa to be left behind."
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