A report on CEO consensus opinions expressed at the Jeffries Internet Conference indicate that even for the new media kids on the block, ad dollars are shrinking. Will they be able to plug the gap with subscriptions? That’s what some are thinking, according to a report in paidContent.org. They’re also considering consolidation via the M&A route. They do expect that ad dollars will return as the economy rebounds, but that growth rates will level out.
RBR/TVBR observation: It is inevitable that growth rates level out as a medium matures – that is the natural order of things. As for success via a subscription model, all we can say is good luck. It may be possible for a few select types of offerings, but for the most part, if web surfes are informed they need to get out their credit card to proceed, they’ll simply click to a location where the card can stay in their wallet.
Again, RBR/TVBR states in our 26 year that Content is King but Only if You Control the Content. Now we add Control Original Content not PR releases.