Monday, January 26, 2009

Media struggle to reinvent business models to survive

David Phelps writes:

The troubles can be attributed to a perfect storm of outdated business models that were slow to adapt to the Internet, a fragmented audience that is less receptive to mass advertising and a faltering economy that is undermining or even wiping out advertisers such as auto dealers, real estate firms and giant retailers.

For the so-called mainstream media to survive long enough to enjoy the economic recovery, they're going to have to change their business models and figure out how to make an Internet audience pay the bills.

Numbers from the Nielsen Co. document the advertising decline roiling print and broadcast media companies.

Newspaper advertising is down 8.7 percent for the first three quarters of 2008 -- and that's on top of decreases of 7.5 percent in 2007 and 3.6 percent in 2006.

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