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Tuesday, January 10, 2012

I read it in a magazine...

The internet has helped foster many changes in modern life, but not all of them are desirable.

In a December 2011 review of The Fall of the House of Forbes: The Inside Story of the Collapse of a Media Empire by Stewart Pinkerton, Jamie Malanowski identifies some harsh numbers for the publishing industry:
Facing dramatically declining advertising revenue (in the year 2000, Forbes had more than 6,000 pages of advertising—this was during the high-on-your-own-supply years of the bubble)—and was charging about $75,000 per page; in 2010, it had 1,640 pages of advertising, and was charging between $23,000 and $25,000 per page. The numbers from magazine to magazine no doubt differ, but throughout the industry the basic story is surely the same. Revenue declined, and the Internet, with all its power to deliver information quickly and cheaply, and all its nifty gadgets, pushed magazines into yesterday.
By my calculations, Malanowski is identifying a revenue drop from $450 million in 2000 to $41 million in 2010 -- and those figures assume the highest charges were always collected in the more recent year.

So Forbes, at least, lost over 90% of its advertising revenues during the decade, before accounting for inflation.

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1 comment:

  1. Anonymous1:59 AM

    Such a small think. ;-) But such a great idea