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Perspective June 25, 2006

Posted by David Card in Media.

Excellent perspective piece by Richard Siklos in the Sunday Times. Most big media companies would be lucky to get 5% of their revenues from the online, and almost none of them has a business that’s worth half a billion in yearly revenues.

    For now, though, the question of who among the media companies has this Internet thing figured out remains open. But at this time of upheaval and gloom about media’s prospects, it is funny to think about how much money there is still to be made in the good old offline world.

Here’s my spin:

– It’s not an open question. None of them “has this Internet thing figured out,” as evidenced by their revenues.

– AOL, for all its flaws, is a bigger business for Time Warner than its magazine business is, and more profitable. Time Warner dominates magazines, like no other media company dominates its category (twice the share of number two).

– In Q1, Google had $2.25B in sales, AOL $2B, Yahoo $1.6B, and MSN $600 million. That’s quarterly, not yearly revenues.

Meet New Media, it’s not the same as old Media. Not in this case, anyway.

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