BOSTON--The wave of cutbacks in the online entertainment
industry are merely signs of healthy business models as companies evolve
to become successful, according to Forrester Research analyst Eric
The analyst said he doesn't think Shockwave.com's staff cuts, announced late yesterday, are a sign that the company is in trouble.
"They make very important, very powerful technology," Scheirer said in an interview.
He added, however, that Pop.com, which plans to lay off most of its 80 employees by the end of this week, emphasizes the difficulties offline companies face as they attempt to attract customers online. The online entertainment company, backed by Hollywood heavyweights Steven Spielberg and Ron Howard, decided to shutter its doors before even launching its site.