Internet Revenues Near $500 Billion
Oct. 27, 1999
WASHINGTON (AP) _ Revenues for Internet-related businesses are projected to rise more than 67 percent this year to $507 billion, according to a study financed by one of the industry's giants.
With the increase over $301 billion in revenues in 1998, those businesses now account for 2.3 million jobs, according to the study by the Center for Research on Electronic Commerce at the University of Texas in Austin.
The study, funded by Cisco Systems Inc., the $12.1 billion computer networking company, included both those running the Internet _ such as computer hardware and software companies _ as well as those selling products over the network. Cisco provided the study to news organizations for publication Wednesday.
If the nation's Internet economy were to grow at even half its current rate the next three years, it would generate $1.2 trillion in revenues in 2002, the study said.
Revenues among U.S. companies selling products over the Internet have more than doubled to an estimated $170 billion since last year, the study said. Those companies also have created 394,000 Internet-related jobs in the past year, employing a total of nearly 901,000 workers.
Remaining revenues and jobs came from companies that create hardware or software, support the Internet's infrastructure or act as intermediaries for digital transactions, such as online travel agents or brokerages.
The total Internet-related revenue of $507 billion is about 6 percent of the nation's gross domestic product _ the broadest measure of economic health.
The study said the bulk of the economic and job growth is being driven by small businesses, with the largest 10 companies accounting for only 27 percent of all Internet revenue.
The university said it compiled the study's results by looking at 3,400 U.S. companies, with a total of 305,000 employees, that generate all or part of their revenues from Internet products or services. Some of the information was amassed using reports from research companies, financial reports and the Web sites for 300 of the largest companies.