Are Rupert Murdoch's Internet purchases a sign of the future or another bubble?
"Saying, well, the next generation, my kids, and my grandkids, are going to have very different media consumption patterns is a little bit of a cop-out. It's actually happening now." These words from Sir Martin Sorrell, C.E.O. of the advertising group WPP, describe why many media owners are scared of the rapid changes their domain is undergoing.
At first, they were reluctant to accept the coming storm. But now some, especially Rupert Murdoch, seem to be on an Internet holdings spending spree.
Speaking at the Internet Advertising Bureau's first online marketing conference entitled Engage 2005, Sorrell accused Murdoch of "panic buying" for his sudden burst of interest in Internet properties over the past few months (see previous posting). He said he might be exaggerating, but then again, maybe not.
The bulk of his speech discussed just how quickly the onset of new media is transforming the media ecosystem. He cited major media companies' loss of revenue, the decline of readers and viewers and the fleeing of advertisers as signs of this change.
Their panic, however, may be room for concern. In the midst of this revolution, will the exorbitant amounts of money MSM companies are paying for Internet properties in order to provide themselves with new outlets for advertising and possible revenue create another Internet bubble?
Are Internet companies overvalued? Is the Internet itself overvalued as the medium of the future?
What's your opinion?
Source: The Guardian, Reuters
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