This thesis provides a critical analysis of the relation between Internet art and the traditional institution for contemporary art in the North American and West-European regions. Thirteen years after its inception as an art form, the Internet art world finds itself in a developmental stage and its relation to the traditional institution for contemporary art is accordingly. Through an elaborate discussion of the key players, institutions and discourses on aesthetics, economics and exhibition methodologies, this sociological analysis of the past and current situation hopes to offer a solid ground for extrapolation and predictions for Internet art’s future as an art world in its relation to the traditional art institutions.