A leading Internet research and analysis company has predicted that in 2002 the UK Internet market will be dominated by developments in broadband Internet access, Digital TV and the music industry.

The report produced by Jupiter MMXI predicts that next year the UK and Italy will see the most growth in the number of broadband households, with the number of households with broadband connections increasing threefold during 2002. However, overall broadband use in Europe is not expected to reach critical mass, 15 per cent of homes, until 2006.

Mark Mulligan, Data Analyst says: "Following a difficult year for the Internet economy, when companies went out of business and others consolidated, the key word became 'profit'. In 2001, Jupiter MMXI pointed to paid content, gambling online, auctions and outsourcing as some of the options for making and saving money through the Internet. In 2002 we expect to see technology playing an important part in the development of the market, as well as a continued increase in the number of consumers going onto the Internet."

The report also foresees that two-way satellite, fibre-to-the-home and fixed wireless access alternatives to broadband will start to make more of a mark in the Internet delivery market 2002.

Turning to digital television (DTV), the UK has the highest penetration of DTV in the world, and by the end of 2002, half of all British homes will have DTV. The report also predicts that revenues from interactive services on television will remain significantly lower than those from the PC Internet in 2002.

Online music companies Vitaminic and OD2 will prosper at the expense of the major record labels and the report predicts the next generation of Napster clones while gaining in popularity will face new technology orientated action from the record industry who will no longer rely solely on court cases to quash illegal file sharing.

By the end of 2002 Portals such as Yahoo, MSN and AOL will become key online music destinations. (SP)