In the business reality of 1997’s year-end, the Internet is still not considered a market. It is true that everyone talks about it, but then everyone once talked about the G Spot, and no-one knows to this day exactly where it is.
Out there in the street, other voices are being heard: The banks received approval to offer their customers passive bank transactions on the net, such as verifying balances in the account and portfolio management, but not, heaven forbid, moving money from one place to another.
The number of Israeli Internet sites has grown tremendously during ’97. The banks, scenting the smell of money even light years away, are today investing in their sites much more than at the end of ’96. Israeli high-tech companies have also learned that it is worthwhile maintaining a well presented, user friendly site, which contains more information than covered in a general manager’s remarks in the pidgin English of the company’s janitor, who happened to spend two years in New York.
Even you, dear Arena readers received another option on the political scene, in the form of an Internet edition of "Ha’aretz" newspaper. Not to mention the Prime Minister’s site, with wondrous photos of Bibi and Sarah, and the Prime Minister’s greetings in audio-video and what else.
Just the same, it is stuck in the mud. A large part of the blame can squarely be placed on the editors of the large newspapers ("Yediot Achronot" and "Maariv"), who have been hesitating for more than a year on whether to finally mount an Internet edition. Even advertisers on the Internet, on whom the whole sector will either make it or break it, got cold feet this year. Excluding Tnuva dairy, which went on the net with all its force, we have not seen this year much pluck in the field of Internet advertising. An advertisement and/or site on the ‘Net is still regarded in Israel as a doubtful venture. The aim of advertisers who do go on the ‘Net is still to show a presence, and not, it is believed, to break through to a new market segment.
At the end of ’96, it was almost impossible to envisage this outcome. Early forecasts at that time spoke of a recession in the sector, but also of the entry on the net of major enterprises. It did not happen, at least in Israel. Israel’s largest concern, Clal, remains without a site on the Internet, and on the other concern’s site (Koor), you very often meet building workers. "Under construction", "Still under construction" is what greets you. That sums up the Internet situation in Israel, at the end of ’97.
For those around the world who are worried, we can allay their fears by talking of the transition year of ’97, painting a gloomy yet distorted picture. The Israeli breakthrough on the ‘Net is actually gathering force, and Israeli Internet suppliers have almost 70,000 subscribers today. In a worst scenario case, we can all go back to reading books.