Dotcom worst is over, claim researchers

The number of dotcom casualties in July dropped to its lowest level since last September, according to a new US report.

Researcher Webmergers.com 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."