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Nov27
Every Media Company Doing it - Making $500 Million That Is

According to about every studio in Hollywood, they're going to make about $500 million in digital sales this year. Just ask 'em, they'll tell you.

The problem for investors and analysts is that there is a large difference among the companies in interpreting what digital revenue for their particular company entails.

The reason I think that all the comanies are throwing out the same figure is because they don't want to be seen as behind the digital curve, which investors Digital%20Media.jpgare putting a premium on as part of their consideration for company value.

But when you have Disney (DIS) and News Corp. (NWS) heavily invested and making a number of moves, it's hard to believe that all the other companies are suddenly making the same amount of money as they are.

They are able to do this at this time because there is no way outsiders can measure the context that companies are using to determine what they consider online revenue. I don't really think the companies can do it at this time.

We're seeing the same thing over and over again in this specific business space. The media companies simply have no idea really how things are going to go, or the revenue they're going to generate. They are throwing out these figures to placate their shareholders while still trying to figure out how they can create predictable streams of income from their digital investments.

I don't think we can rely on any numbers coming out of the media companies concerning their digital investments for quite awhile. It seems that they really have no idea what they will be able to make in the near future.


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