Margins Like You Wouldn’t Believe

November 9, 2005

Been talking to a bunch of owners of locally targeted sites that aren’t affiliated with any major media company, and am amazed by the profit margins: 50% in many cases. Almost pure revenue when they build new properties, and none of the zero-sum effect newspapers, TV or radio have, where dollars spent online steal from the mainstream property.

Hard to imagine how “legacy” media can compete in the space, unless they form a partnership. Or maybe there’s math I don’t understand.

Will say more about the report I’m working on relevant to this later.

Get free blog up and running in minutes with Blogsome | Theme designs available here