I really don’t know how this went past me, but I was watching Fast Money today and Kaminsky made note of Apple going into direct search. To make this a little more solid, look at this,
Trefis, an analysis tool that allows investors to estimate how much an assumption could influence a company’s stock price, has a price target of $294 for AAPL stock, and it estimates that 8 percent of that projected value represents paid and ad-supported software on its App Store. For comparison, the company has projected that the iPad will constitute just 4 percent of the stock price.
The always insightful Picard makes this more tangible:
The biggest problem of media business models today is not that the revenue model is diminishing in effectiveness, but that most media companies are still trying to sell nineteenth and twentieth century products in the twenty-first century. And they are trying to do so without changing the value they provide and the relationships within which they are provided.
Only time will allow us to understand how this is going to work out, but regardless, it is an interesting time to be in media.