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Profits drop but content stays key.(news providers)
Byline: peter williams
Profits drop but content stays key
Kim Thomas
News providers' revenues fell by 2.5% last year while growth in the search aggregation and syndication market continued at breakneck speed, with Google and Yahoo growing by 57.5% and 9.7% respectively, according to research from analyst Outsell.
The research showed that growth in the information industry as a whole slowed from 6% to 5.3%.
Kate Worlock, director of the market intelligence service at Outsell, said that shrinking revenues were not necessarily bad news for news providers. "The search and aggregation players would find their business very difficult if they didn't have quality content to drive people towards," she said. "They don't have that content themselves; they're simply building effective businesses off the back of it."
Another rapidly expanding area is the scientific, technical and medical (STM) sector, which grew by 14.5%. Much of this growth was down to the performance of geophysical data providers; if they are taken out of the figures, the rest of the segment grew by only 5.6%.
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Source: HighBeam Research, Profits drop but content stays key.(news providers)