• Ad Age, Tuesday, April 18, 2006 11:33 AM

It's a prediction no one in the magazine industry wanted to hear, at

 least not yet.  Yesterday Merrill Lynch said it believes the Internet

 will take in more advertising dollars in 2006 than will magazines.  If

 that comes to pass, few would be shocked, but it would nevertheless

 represent a pivotal moment for both industries.  Great news for Web

 companies, less good for publishers.  However, Nina Link, who heads the

 Magazine Publishers of America trade group, did manage to put a

 positive spin on Merrill's forecast. "The people who report on media

 like to think it's really significant. I don't. It just says there are

 more opportunities to reach consumers and make powerful partnerships.

 The powerful brands and media are going to thrive.”  On the other hand,

 says Rob Gregory, group publisher at Dennis Publishing's Maxim, "The

 tectonic plates are moving beneath us."  Fortunately, virtually every

 major magazine publisher is deeply involved in digital initatives,

 trying to create business models that take advantage of putting their

 content on the Web--or, in the case of some magazines, actually

 replacing the print edition with an online publication.

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