Are Generic portals loosing their grounds ? Rediff post losses again in 2010 !

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Recently we heard that Rediff posted a net loss of $7.97 million for the year ended March 2010, as compared to a net loss of $11.26 million in the previous fiscal year. Revenues declined from $25.43 million recorded for the March 2009 ended year to $18.84 million in the 2009-10 fiscal year. During the March 2010-ended year, Rediff earned an interest income of $4.01 million.

India Online revenues for the 2009-10 year also stood at $14.69 million, a decrease of 34 per cent compared to a year ago. Revenues from Rediff’s US Publishing business also went down by 38 per cent to $4.15 million. The number of registered users grew by 15 per cent to 89.5 million at the end of March 2010, as compared to a year ago.

Going through with all above figure, its not difficult for any one to figure out how fast and with what speed various online generic web portals, whose main source of revenue are from ads, are loosing their ground. In my one post few days back, I had mentioned how exactly MySpace, so called 5th virtual largest country is also consuming slow poison ( The death of MySpace ). Is this a time when Entrepreneur should realize the
mindset of their target viewers and adopt the shift gear which leads to further investments for Research & Development in order to give something unique and really useful to market.

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Internet has already flooded with lots of similar portals. Days are gone when a student used to start a simple portal and big companies but that later with packet of money. Realizing the business model and potential of online business market most of the corporate houses now own their own online business model, no matter its a PR House, Retail House or IT one. This tightened the screws on the potential viewers and now they have multiple choices to browse. As a result the over all general viewers have been distributed among multiple portals. Even lots of local regional portals are serving in better manner to local viewers and disconnecting them with national based portal like rediff, In.com etc. Recently Timecity.com is a real example of this.

So how to come over this problem and get back the profit back on papers. As per the study done in USA, every venture start investing in R&D after 2 years and they expire the existing base business model in every 5-6 years. This ensures their viewers to get something new with regular intervals. It’s high time when Indian ventures need to understand the same methodology and look beyond their regular business model which they are serving to their potential viewers. Infact the demands are also getting increase form the Advertisers who are looking better value for their money. They are also getting overload to evaluate with bundles of offers from such portals and its neck-to-neck situation for everyone.

I am sure once adopted the same rediff.com, in.com, ebay.in, indiaplaza.com and many more similar portals can gain their momentum back and head towards profits & higher revenue year by year. 

Recently we heard that Rediff posted a net loss of $7.97 million for the year ended March 2010, as compared to a net loss of $11.26 million in the previous fiscal year. Revenues declined from $25.43 million recorded for the March 2009 ended year to $18.84 million in the 2009-10 fiscal year. During the March 2010-ended year, Rediff earned an interest income of $4.01 million.

India Online revenues for the 2009-10 year also stood at $14.69 million, a decrease of 34 per cent compared to a year ago. Revenues from Rediff’s US Publishing business also went down by 38 per cent to $4.15 million. The number of registered users grew by 15 per cent to 89.5 million at the end of March 2010, as compared to a year ago.

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Going through with all above figure, its not difficult for any one to figure out how fast and with what speed various online generic web portals, whose main source of revenue are from ads, are loosing their ground. In my one post few days back, I had mentioned how exactly MySpace, so called 5th virtual largest country is also consuming slow poison ( The death of MySpace ). Is this a time when Entrepreneur should realize the
mindset of their target viewers and adopt the shift gear which leads to further investments for Research & Development in order to give something unique and really useful to market.

Internet has already flooded with lots of similar portals. Days are gone when a student used to start a simple portal and big companies but that later with packet of money. Realizing the business model and potential of online business market most of the corporate houses now own their own online business model, no matter its a PR House, Retail House or IT one. This tightened the screws on the potential viewers and now they have multiple choices to browse. As a result the over all general viewers have been distributed among multiple portals. Even lots of local regional portals are serving in better manner to local viewers and disconnecting them with national based portal like rediff, In.com etc. Recently Timecity.com is a real example of this.

So how to come over this problem and get back the profit back on papers. As per the study done in USA, every venture start investing in R&D after 2 years and they expire the existing base business model in every 5-6 years. This ensures their viewers to get something new with regular intervals. It’s high time when Indian ventures need to understand the same methodology and look beyond their regular business model which they are serving to their potential viewers. Infact the demands are also getting increase form the Advertisers who are looking better value for their money. They are also getting overload to evaluate with bundles of offers from such portals and its neck-to-neck situation for everyone.

I am sure once adopted the same rediff.com, in.com, ebay.in, indiaplaza.com and many more similar portals can gain their momentum back and head towards profits & higher revenue year by year.

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