E-commerce is also turning into a key revenue source for CondeNet, which produces sites for Conde Nast magazines. The key, the company has found, lies in drawing a direct connection between content and commerce. TO BE FREE For most content sites, subscriptions haven't led the way to profitability. A Revenues from online subscriptions are going to generate less than a quarter of the company's revenues, while a print magazine launching this month is expected to account for more than half of revenues. The company just laid off 20 percent of its staff in an effort to turn a profit by the second half of 2001.
Executives say the site is focused on gaining more subscribers.
This is the shakiest leg of the three. Even the Wall Street Journal, often cited as a lonely success with its subscription model, is not making money on the Web. People just don't want to pay for news and information. The exception that proves this rule is Consumer Reports. Its Web operation, like the magazine itself, accepts no advertising and has been making money for more than a year on subscriptions alone.