Faber: WHAT ACCOUNTS FOR THAT? RELUCTANCE ON THE PART OF ADVERTISERS?

 

Zucker: I THINK IT WAS THE LAST THING WE WENT INTO. THE FIRST THING WE’LL COME OUT OF TYPE OF MENTALITY. WHETHER THAT’S RIGHT OR WRONG, I THINK THAT IS WHAT HAPPENS. THE DIGITAL MARKETPLACE IS MUCH MUCH SLOWER THAN ANYBODY HAD ANTICIPATED. SO WHERE IS DIGITAL? I THINK IT’S STILL AN OPPORTUNITY . I THINK IT’S GOING TO CONTINUE TO GROW. IT’S NOT GOING TO BE WHAT PEOPLE THOUGHT IT WAS. CERTAINLY IN THE SHORT-TERM.

 

Faber: THAT’S NOT GOOD NEWS.

 

Zucker: PEOPLE HAD BEEN COUNTING ON THE DIGITAL EXPOSURE. I HAD BEEN TRYING TO TALK ABOUT THE FACT THAT EVEN AS IT GREW, IT WAS NOT NECESSARILY THE BIG GROWTH ENGINE FOR THESE LEGACY MEDIA COMPANIES THAT WERE TRADING THOSE ANALOG DOLLARS FOR DIGITAL DIMES. WE’RE NOW UP TO DIMES. THAT’S AN IMPROVEMENT.IT’S STILL NOT A DOLLAR FOR A DIME KIND OF BUSINESS THAT I WOULD LIKE TO BE IN.

 

Faber: BUT IT IS THE LONG-TERM FUTURE OF THIS INDUSTRY

 

Zucker: IT’S LONG-TERM BUT NOT — WE’RE GOING TO HAVE TO CONTINUE TO REDEFINE THE ECONOMIC MARKETPLACE WITH REGARD TO DIGITAL BECAUSE WE CAN’T JUST EXCHANGE THOSE ANALOG DOLLARS FOR WHATEVER THE DIGITAL DIMES ARE.

Funny, look at what was said of Hearst:

The Hearst news empire reached a circulation and revenue peak about 1928, but the economic collapse of the Great Depression and the vast over-extension of his empire cost him control of his holdings. It is unlikely that the newspapers ever paid their own way; mining, ranching and forestry provided whatever dividends the Hearst Corporation paid out.

Interesting, no?