January 15 – January 22, 2008 Edition

Traditional Media
Head for Digital
World En masse

NEW YORK, NY (Authorlink News, January 12, 2009)– Yet more evidence that the future of media is digital came in a report released last week by boutique investment bank Jordan, Edmiston Group estimates. The company projects that between 88 percent of the publishing and advertising industry's revenue growth over the next few years will come from four sectors: Database & Information, B2B Online Media, Consumer Online Media, and Interactive Marketing Services. In other words, it will be coming mostly from the Web. In contrast, between 2001 and 2007, only 33 percent of industry growth came from these sectors. The other 67 percent came from traditional publishing businesses such as newspapers and magazines (formerly known as print

media-the report does not cover TV, radio, or outdoor advertising). The information was reported in an article by Erick Schonfeld on

Schonfeld said that to the extent there will be any growth at all in the publishing industry, all you need to do is look at the multiples paid for different businesses to see where the growth is going to be. Last year, consumer online media companies sold on average for 4.1 times revenues and 21.3 times EBITDA. Database and information companies sold for 3.5 times revenues and 14.1 times EBITDA. Consumer magazines, on the other hand, sold for only 1.5 times revenues and 8 times EBITDA. Newspaper multiples were about the same (1.5X and 8.5X, respectively, see chart below).

Read the full article at