New media taking a financial hit too

While New Media tend to gloat over the financial troubles of MainStreamMedia, it turns out that they are just as vulnerable to the root cause of the current media crisis: seriously reduced advertising dollars. Slate.com notes that YouTube, one of the most heavily trafficked sites on the web (Susan Boyle is up to 50 million hits now), nevertheless is on track to lose $470 million this year (it takes a lot of servers, geeks, wires and overpaid executives to keep a site like YouTube going.) Meanwhile, Yahoo is laying off another 600 people (Globe and Mail), though its problems are complicated by serious competition from Google.

Slate.com, April 14 20009

Globe and Mail, April 22 2009

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3 Responses

  1. Everyone’s taking a hit, of course.

    There’s no reason for bloggers (or web columnists) to rejoice at the perceived demise of newspapers, as I have stated on my site and also on my internet radio call-in show several times. Both sides need each other.

    I get my news and information from the MSM and then share my opinion and analysis via a web column or blog post. If the MSM were to disappear, bloggers would have a hard time finding material to write about.

    At the same time, though, the MSM should show more respect for bloggers. As I said, we both depend on each other (e.g., bloggers driving traffic to MSM websites).

  2. I’ve often wondered if mainstream media will be killed because the internet has us all so used to getting news for free, enough people won’t be willing to pay for anything.

    Then, new media will die because of a lack of content either inspired by or filched from mainstream media.

    Nah… could never happen. Right? Right?!?

  3. If YouTube dies, my quality of life will suffer greatly.

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