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INDUSTRY SEGMENT PERFORMANCE

08/02/00

By 2004, total U.S. spending on BIS is projected to reach $64.3 billion,
a five-year CAGR of 7.8%.
The BIS market, composed of companies that sell "must-have" business and professional data, continued its upward growth path in 1999, with spending jumping 7.7% to $44.2 billion - it was the fifth consecutive year in which spending growth surpassed 7%, in spite of generally declining unit pricing of subscription services. Over the 1994-99 period, the market achieved a compound growth rate of 7.6%. Most companies in this sector embraced electronic distribution years ago, and have been early adopters of new media distribution methods including Internet, intranets, and wireless technologies.

Among BIS vendors, those that provide economic and financial information constitute the largest single part of the market, with spending topping $14.9 billion in 1999, followed by marketing data ($13.8 billion) and payroll and human resources ($4.8 billion).

Among BIS purchasers, the largest category of buyers in 1999 represented intermediary and professional service businesses, comprised of firms in areas such as legal, accounting, financial services and data repackagers. Spending among this group reached $14.4 billion, a 7.4 increase over 1998. Other top user categories were consumer packaged goods, manufacturers and distribution services .
Source: Veronis Suhler Communications Industry Forecast

11/09/99

Spending on business information services rose 7.0 percent to $33.5 billion in 1998.
Although the 1998 increase was somewhat lower than the 7.5 percent advance of 1997 and the 7.9 percent gain in 1996, 1998 marked the third consecutive year that growth reached or exceeded the 7 percent level. Over the prior 1988-1995 period, spending increased at a 6.3 percent compound annual rate. The uptick in growth reflects the transformation of the industry due to the Internet. The Internet has allowed workers to access information directly from the desktop; has spurred advances in desktop processing power; has reduced the cost of transmitting information, opening up the market for new entrants; and has stimulated both the usage of information and the creation and transmission of information. The Internet has fundamentally changed the nature of the business information industry by putting the users of information at the center of the process.
Source: Veronis Suhler Communications Industry Forecast

1/04/99

Revenue for business information services grew 13.3% in 1997, the fifth consecutive year of double-digit growth. The increase has been driven by an expanding market and new products as well as by acquisitions, which totaled $23.8 billion among publicly reporting companies in 1995-96 alone.
  • Advances in data communications, computer networking, and the Internet have stimulated the demand for information.
  • Margins improved in 1996 and remained relatively stable in 1997. Over the five year period 1993-97, the operating income margin in 1997 rose 1.2 points to 17.2% and the operating cash flow margin rose 1.6 points to 25.7%.
    Source: Veronis Suhler Stevenson Communications Industry Report

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