Monday, July 11, 2011

Why Tech Companies Don't Want to be Called "Media" Companies

Advertisers and other publishers have pointed out for years now that assembling audiences, and selling advertising against them, makes some significant "technology" companies media businesses. Google, for example, constantly says it is a technology company, not a media company, despite the fact that its revenue stream is overwhelmingly based on advertising revenue.

Some might suggest that hesitance to embrace the "media" appellation is more than a cultural issue. One might argue that engineers and software developers just prefer to think of themselves as technologists, not publishers. It might be more simple than that.

Valuations of media companies are not as rich as those of technology companies. That alone would be reason to emphasize "technology leadership," rather than media operations.

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