Digital Media's Slowest Revenue Quarter Ever: Report

This story was written by Rafat Ali.
Strategy Analytics has done a simple comparison of revenues from a selected group of online media/Internet companies in Q208 (what it calls its "Digital Media Index"), and shows that revenue growth for these companies slowed to 0.8 percent quarter-on-quarter in Q208, down from 3.3 percent in the previous quarter and 3.4 percent in the same period last year. Google (NSDQ: GOOG), up 3.5 percent quarter-on-quarter, was the only one of the five largest companies that went against the general trend.

Some other conclusions:
-- Fox Interactive Media (NYSE: NWS) was the fastest growing digital media company, with 55.6 percent growth in the last 12 months
-- Apple (NSDQ: AAPL) iTunes was down 7.0 percent quarter-on-quarter. However this decline is consistent with seasonality for iTunes, and is in line with a 6.9 percent drop in the same period the previous year.

The conclusion: "It seems that not even an emerging sector such as digital media is immune to the global economic downturn." Oh wait, we were part of the economy? Who knew

Global Digital Media Index, Top 5 Companies (US$ Million)

Q2 '07

2007

Q1 '08

Q2 '08

Google

$3,872

$16,594

$5,186

$5,367

Change %

5.7%

10.8%

7.4%

3.5%

Yahoo!

$1,698

$6,969

$1,818

$1,798

Change %

1.6%

1.9%

-0.8%

-1.1%

Microsoft (NSDQ: MSFT) Online Services

$688

$2,845

$843

$838

Change %

10.4%

9.1%

-2.3%

-0.6%

Apple 'Music Related Products and Services' (iTunes)

$608

$2,670

$881

$819

Cange %

-6.9%

7.0%

9.0%

-7.0%

AOL (NYSE: TWX) Advertising

$522

$2,231

$552

$530

Change %

-4.9%

2.5%

-11.0%

-4.0%

Digital Media Index (Quarter-on-Quarter)

110

n/a

138

139

Change %

3.4%

n/a

3.3%

0.8%

Digital Media Index (Trailing Twelve Months)

117

135

145

153

Change %

7.6%

7.8%

6.8%

5.8%



Source: Strategy Analytics



By Rafat Ali
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