MediaPost Publications Broadcast Nets Should Program Digital Risks 10/19/2009

by Diane Mermigas
MediaPost Publications Broadcast Nets Should Program Digital Risks

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5 Factors That Will Determine Future Ad Spend

by Diane Mermigas, Friday, October 9, 2009, 4:26 PM
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=115196

2009 Digital Media Trends

With ad sales drying up, it is safe to say that digital media companies have to look for other revenue streams. Subscriptions are clearly an alternative. Fee-based business models provide a much more stable revenue source. Surely it is working for Netflix. It is one of the few companies that have thrived in this economic environment. As packaged media declines, Netflix will continue to roll out online streaming services and charge a premium.

There will be consolidation in the online video space. How many players can compete with YouTube and Hulu? Look for secondary players to fall by the wayside.

As businesses cut costs during these lean times, profit margins will improve. When the economy improves, the thriving companies will have more operating leverage than ever before.