Internet Publishing and Services

The Internet publishing and broadcasting and search portal industry includes about 2,600 companies with combined annual revenue of about $35 billion. Major companies include Google, IAC/Interactive, and Yahoo!. The publishing and broadcasting segment of the industry is concentrated: the top 50 companies account for more than 60 percent of revenue. The search portal segment of the industry is highly concentrated: the top 50 companies account for more than 90 percent of revenue.

Companies that specialize in providing Internet access are covered in the Internet Service Providers profile.

COMPETITIVE LANDSCAPE

Demand is driven by consumer and business needs for information and entertainment. The profitability of individual companies depends on their ability to deliver relevant information to consumers and to offer advertisers desirable target markets. Large companies enjoy economies of scale in marketing and in their ability to develop and maintain multiple websites. Smaller companies can compete by focusing on niche markets. The industry is capital-intensive: average annual revenue per employee is about $450,000.

Companies in the Internet publishing and broadcasting and search portal industry compete with other publishers and broadcasters and with the Internet-related businesses of leading technology and entertainment companies.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are search portals and websites devoted to news, sports, entertainment, gaming, networking, and other topics. Advertising is the primary source of revenue.

Search portals serve as users' gateway to the Internet. The portal used determines the type of advertising a user sees, and the ...