Tuesday, March 11, 2008

Download $1 billion in online revenue


For my day-job, I had to understand the makeup of traditional vs. online revenue. For most traditional media properties, the revenue allocation is 95% from traditional sources (print, broadcast) to 5% for online. New York Times generates 90% of its revenue from advertising in print, and 10% from online.

As you can imagine, I was really surprised by Walt Disney Co announcement that they expect to collect one billion dollars in revenue from online content in 2008. Walt Disney CEO, Robert Iger said that the company has been “fairly aggressive” in its expansion to new media. Disney used tactics that need to be used more by traditional media- they advertised their online property over broadcast shows.

Still, online accounts for less than 3% of companies’ revenue, meaning Disney has ways to go.

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