Old Media Can't Make Headway on Web

This column was originally published on RealMoney on June 12 at 8:41 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.

Every day we read articles about how the major media companies are dealing with the Web. Some are adopting podcasts, some are putting delayed programming on the Web. Still others are adding augmented programs or additional scenes to their Web entities.

OK, I'll say it: It's all nonsense. That's right. It is all much ado about nothing. Because the economics of the Web simply aren't there.

The economics aren't there for the major television networks because the Web ad dollars are dwarfed by what the networks take in for regular programming. And when it comes to hits, one run of a show is equal to the revenue these guys might take in from weeks of Web traffic. In fact, any time spent by senior management on the Web is a misuse of time because of the disparity between the money taken in by broadcast and the money taken in by the Web. Sure, March Madness worked for CBS, but it works for millions; the CSI franchise works for billions. And how many other programs are like March Madness, with daytime games that need to be watched by the in-office audience? I can't count even five. ...