Global Internet Village Unlikely until GDP Rises

In terms of membership and traffic, Youtube, Facebook, other large internet companies are doing great in developing nations. Money-wise, not so much. Companies like facebook, which rely on advertising to turn a profit, aren’t able to make much money in developing nations because the GDP of most of the population is not high enough to interest advertisers. In addition, these nations require more servers because of limited bandwidth, driving up expenses. Veoh, a video-sharing website Latin America, Asia, Eastern Europe and Africa from accessing content, because users were using up too much bandwidth without earning advertising dollars.

 

 

NYTIMES http://www.nytimes.com/2009/04/27/technology/start-ups/27global.html?em

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