Here are some examples: Time Warner's 2006 ad revenue fell 23.8% from 2000 according to the
Publishers Information Bureau. The New York Times Company's stock trades at $25--half its 2002 share price. And the music industry's business model is completely caving in: CD sales fell 20% in the
first three quarters of the year, while illegal file sharing is estimated at 1 billion, according to the research group BigChampagne.
Media companies are certainly responding to these changes--but there's still no proof that they've figured it out. Each week it seems, a new startup or technology comes to the fore, placing big media further behind the curve. Meanwhile, most of their new media purchases have yet to bare fruit.