Media 1.0 has Mucho Money to Spend...BUT Magazines Starting Studios?

Read this in USA Today about Time WARTser (TWX). This just seems like a waste of money to me. I thought they fired Calacanis already?

What is exciting are the advertising expenditure numbers:

Domestic Internet ad sales this year likely will soar 26%, to $20.3 billion, while magazine ads will be up 4%, to $25 billion, Morgan Stanley predicts.

Media 1.0 should stick to buying good content for now with their cash flow. They won’t build studios and teams cheap and fast enough to do internet video well.

Either way, the pie is getting bigger and bigger and the technologies being created (Lotame as an example) to leverage the content with advertisers is getting better and better .