We’ve been writing about this for quite some time so it’s fun to see the NYT’s Richard Siklos wrangle with an essential reality (and find a way to work in Sumner Redstone’s fish): for all the fuss and the double-digit, sometimes triple-digit growth in online revenues, new media revenue isn’t close to material for traditional media companies. That doesn’t mean the gains and the revenues aren’t real. In fact, the inclusion of online revenue has helped some “print” units show a profit. So what does this say about the future financial impact of broadband, mobile and the like? Siklos: “The optimist’s view is that the spoils from this new frontier are still very much up for grabs. … The less-cheerful view of the traditional media companies is that all their online efforts will not translate directly into more revenue or fatter profits.”
I’ll opt for the pragmatic view: without their current investments, experiments and full-force efforts, traditional media companies wouldn’t have much of a long-term future. Period.
Still, I really liked reading about the fish.
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