Dramatic Growth for Content Companies
Outsell, a leading research and advisory firm providing actionable market analytics for the information industry, today revealed that the professional information companies that make up the bellwether Outsell 100 Company Monitor(SM) turned in dramatic 15% growth in the first half of 2004.
The findings, released in Outsell's Financial Performance Scorecard, forecast that most quarterly indicators have now peaked. Additionally, Outsell forecasts overall revenue growth of 12.3% for the Outsell 100 for full year 2004 over 2003, slowing to 7.2% in 2005 over 2004. For the overall information industry, Outsell sees growth slowing from about 9% this year to 5.8% in 2005.
"The first half of 2004 produced levels of growth not seen since 2000," said Chuck Richard, Outsell Vice President and Lead Analyst, who authored the Financial Performance Scorecard. "But this time, growth is built on solid fundamentals and profitability, not on hype. The professional information industry is a very large, yet rapidly growing, dynamic market, and our models show that during recoveries, the industry accelerates faster than the overall economy."
Drawing from the proprietary Outsell 100 Company Monitor, Outsell measured actual double-digit revenue increases in both of the first two quarters of 2004, led by extreme growth rates in the component companies from the search engine and content software technology sectors. Other recent Outsell research from its industry-sizing database of over 4,000 vendor companies also revealed that the professional information industry will surpass the $200 billion revenue milestone for the first time in 2004.
Outsell clients including publishers, commercial information providers, and content software technology vendors use the Financial Performance Scorecard for best practice analysis, benchmarking, and planning. Outsell provides research and analysis to information industry executives at companies worldwide who are now in the midst of preparing budgets for 2005 and helps them to understand how they performed against industry-wide growth in the first half of 2004. For the investment community, the Scorecard serves as a check on the overall health of the industry and its 100 top companies. The Scorecard reveals key factors driving the pace of this expansion:
" Growth in the portion of the market driven by subscriptions and fees (54% of total industry revenue) versus those that are funded by advertising and marketing.
" Recovery, although slower, in advertising markets worldwide, aided by the U.S. election and the Olympics.
" A large group of growth leaders that deliver content only on the Internet.
" A diminishing, but still material, component of growth from the weakening U.S. dollar.
www.outsellinc.com
Delicious
Digg
Reddit
Magnoliacom
Newsvine
Furl
Google
Yahoo
Technorati
Comments
Post new comment