Tuesday, June 16, 2009

Analog dollars to digital cents

Jeff Zucker, the CEO of NBC has a wonderful quote about the way the Internet is transforming digital dollars into internet cents. Essentially, he's holding up a mirror to the way a multi-billion dollar market has the potential to be a multi-hundred million dollar market due to the ravages of internet caused deflation. Silicon Valley Insider, has a wonderful chart showing the trend of newspaper ad sales vs Craigslist revenue here.

Nowhere is this savage deflation more visible than the print media market is experiencing, in large part due to the effect of a self-deprecating 'nerd' Craig Newmark and Craigslist. A bright future is before many entrepreneurs who hope to garner large market shares of once billion dollar markets, now relegated to large, but not gigantorous (sounds like an impressive size) opportunities. Analog dollars to digital cents is a threat to the establishment, but music to the next generation of Sam Walmarts, Henry Fords and Bill Gates. All deflationary leaders.

Here's an interview with Jeff conducted at Ad Age in February

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