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