Wednesday, December 17, 2008

The mathematics that don't add up for the web

This is a subject that this blog refers to many times.Are news organisations sustainable as web only operations? (Ht-Jay Rosen)

A report called size doesn't matter from online media-research company ContentNex concludes that they do and looks at the New York Times as an example.(via Advertising age)

"Small website operations can be self-sustaining," writes the report's author, ContentNext Research Director Lauren Rich Fine, "but life is easier at the mega traffic sites."

The problem with all this is the sheer numbers involved to generate the incomes given that ads attached to online sites attract a much lower rate than those for the printed word.

In the case of the NYT,It would have to start generating 1.3 billion hits,a massive tax given that it currently gets 173m a month.

Analysts don't dismiss the possibility of a major newspaper's website eventually either replacing the print edition or making up for the continuing decline in print-ad revenues. But that kind of success is a long way off.

Yes a long way off

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