The Connected Kingdom: how the Internet is transforming the UK economy (PDF link), the full version of the report that’s causing the “Internet worth £100bn!” headlines in the UK. Keep in mind that £40bn of the £100bn is said to be High St. purchases made after online research. But still, even £60bn a year isn’t bad, and nor is an additional backwash of £40bn of highly-informed real-world sales. Online advertising doesn’t seem to have been counted.

Copy and paste is disabled in the document, but the MS OneNote trick easily gets a quote out…

“cost savings from online shopping can be substantial, even when shipping and handling costs are included. In a recent survey conducted by the ONS, 60 percent of households said lower prices were key reasons for shopping online. We estimate the cost savings from shopping online across a range of product categories at about £18 billion, or close to £1,000 per online household annually. Most of these benefits are currently being captured by high-income households, which are more likely to go online and to spend more money there.

We conservatively estimate the consumer surplus for free online content to be about £5 billion annually, or twice what consumers pay to access the Internet.”

I’m guessing here that “conservatively” might mean ‘we didn’t count movie and music piracy’.