Thanks to Roy Greenslade's reporting of Rupert Murdoch's phone interview with thestreet.com on the subject of all things digital.
We work with a number of clients who are struggling with the challenge of making up declining offline revenues by growing new revenues online. It's a challenge to say the least, increasing X does not equal declining Y in this case.
A good, and very valid quote from the media mogul: "On Twitter: "It's an amazing phenomenon but I have no idea how they can monetize it. No one monetises the web today to any extent other than search.""
No one monetises the web today to any extent other than search - let's just think that one through for a moment. Rupert Murdoch is acknowledging that the hundreds of millions of pounds his global media brands have invested in digital media "solutions" is probably not going to pay back in a "non-search" way. Yes, he's looking at subscription and micro-payment models, but this is a very blunt admission from a man who has been investing in digital for a while now.
Subscription models can work, but only if the content is niche, specialist and unique enough to attract and hold onto the audience. Is this then a view from on high that mass media will not make money online? Interesting if it is.