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paidContent 50: The world’s most successful digital media companies

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10. Microsoft

Diversified, United States (Public)

Last year’s rank: #4

Digital Content Revenue

$3,928,000,000 (5% of total)

Digital Snapshot

Microsoft’s Online Services Division houses Bing (gaining on Google but still way behind), MSN (still wrestling with the role of a modern portal but boasting significant scale), adCenter and other advertiser tools. Its Entertainment & Devices Division mostly houses Xbox Live services. Microsoft recently sold its stake in MSNBC.com, the pioneering multimedia news initiative formed with NBC in 1996.

Key Move

Microsoft has recognised Xbox is its best shot at entertainment. By encouraging more developers to sell games online through Xbox Live Arcade, it is ushering in the era of top-title game retail via console download – and helping to put bricks-and-mortar game sellers out of business. Microsoft opened Xbox up to TV and movie services, again taking a cut. Games are no longer front and center for this living room box.

Our Methodology

The Online Services Division reported 18 percent higher revenue of $2.528 billion in Microsoft’s 2011 annual report. In the Entertainment & Devices Division, we estimate Xbox Live revenue that Bloomberg estimated at $1.2 billion the previous year rose to $1.4 billion. We have added these two together.

Source: 2011 Annual report and our estimate based on 2010 Bloomberg estimate

— RA

21 Responses to “paidContent 50: The world’s most successful digital media companies”

  1. Good Job Mr. Robert

    I am a freelancing SEO and SMM professional. The recent update of google penguin and panda has changed the SEO pattern radically.

    And google has done this algorithm change to spread their digital ads business nothing than this.

    I really hate this because, making loss to others for their own profit is a Digital Crime and Weak Business policy from my view. Check my site Arsenal Highlights

  2. ciaranj

    If you want to rank things on revenue, fine. But then don’t call it the ‘Most Succesful List’: Microsoft might ‘make’ $3.9b on digital content, but it also loses around $3b every year too.

  3. Abdallah Al-Hakim

    I think this is a terrific list despite any reservations some people have about the methodology. It really demonstrates the huge growth potential of digital media companies in some of the emerging markets. Also, as a scientist – I note Elsevier being top 5 in revenue (Elsevier is publisher behind many of the top scientific journals).

  4. Mindbendingpuzzles

    What about Valve and their digital games platform: Steam. I know they are a private company and figures are hard to come by but in 2011 Forbes reckoned they have more than 50% of the 4 billion dollar PC games download market. That is huge.

    I would really love to see Paid Content do some investigation on Valve because they are an incredibly innovative company who really push digital retailing to its limits.

  5. Groupon and Monster are’t really media companies. I’m not even sure that ad agencies should qualify in the same category as Viacom or Time Warner. Totally different business model.

  6. Brendan

    Why is eBay not in this list? They have an ad business on eBay.com and their classified sites, and the seller fees they collect are essentially paid ads since the platform doesn’t handle the items. This list is also missing Alibaba Group from China (including Taobao), and Gree from Japan.

  7. Zato Gibson

    “Creating this list wasn’t easy.”

    I can imagine. Manipulating the numbers to get Microsoft into the top 10 must have been really tough.