OPINION: Digital delay
By Paul Sweeting -- Video Business, 4/25/2008
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First came word from Netflix that it was trimming its earnings guidance and lowering its projected subscriber growth for the rest of 2008, causing its shares to lose almost a quarter of their value in one day.
That was followed by Amazon’s first-quarter earnings report, which saw an increase in net income due to its acquisition of Audible and a weak dollar overseas, but included a sharp deceleration in U.S. media sales (books, CDs, DVDs).
More troubling, though, than the lowered sites for the retailers’ core businesses, which can be attributed in part to the softening U.S. economy, is the apparently slow pace at which their digital delivery business is developing.
Read the full column on ContentAgenda.com.
