Some media companies are running out of time as they struggle to generate revenue from the Web, says Liberty Media Chairman John Malone at the Allen & Co. conference in Sun Valley, Idaho.
Without new pay models, the Internet will drain profits at media conglomerates, as it has at newspapers, says Malone, who has controlling interests in DirecTV, Discovery Communications and
the QVC channel. Companies must find ways to be compensated, just as cable operators convinced consumers to pay for TV after decades of free broadcasts, he says.
Internet companies
including Twitter and YouTube will also need to sell subscriptions to make money, Malone said. "Sooner or later people will get addicted to these services and will pay for them," Malone says.
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