RBC Capital reports that CNET’s audience is declining, proving that just “”doing the online media thing” doesn’t mean diddly. CNET is all over product reviews, tech/media reporting, content aggregation, blogging, and all that other stuff that even the most ossified traditional media companies finally clued into about two years ago.
Alas, the new media world has moved on, and what CNET hasn’t “gotten”–what most traditional media companies will never get (not because they’re dumb–just because it’s so foreign)–is the social media revolution. RBC explains, via NY user-gen-media company seekingalpha:
RBC Capital remain[s] neutral on CNET, as they think the stock remains range-bound between $7-$10. The company is in a transition year in 2007. It has a similar audience attrition problem as Yahoo – its core base is declining and it is not participating in any of the web 2.0 growth trends (user generated content and social networking). Core pageview growth (ex Webshots) has turned negative at CNET for the first time this quarter, and the company probably won’t have an easy y/y comp until 1Q08.
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