Dotcom worst is over, claim researchers

Researcher said that 32 dotcoms closed in July, down from 58 in June, and that the worst was probably now over.

The report said: ‘The somewhat dramatic decline in shutdowns in July is consistent with our observation last month that internet rationalisation has reached a plateau and may have run most of its course … we have seen the worst of the internet shakeout.

‘More specifically, our data suggests that the tail-end of the business-to-consumer (B2C) shakeout is overlapping with the early to middle stages of the shakeout in such business-to-business sectors as infrastructure and professional services.

‘That overlap caused a substantial ‘bubble’ in shutdowns early this year. As the B2C casualty rate slows, we should see a gradual decline in total shutdowns.

‘However, there may be a modest seasonal effect and we believe we could see a small spike in shutdowns and other internet activity after the summer holidays.’


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