Or … how arrogance in a marketplace will come back to haunt you.

The declining fortunes of WebMD have returned the stock to its IPO price of October ’05. At $23 and change, investors have waged a punishing battle that forced a retreat from a high of $60 just a few months ago. At the market’s close last week, an IPO investment of $1,000 in WebMd would be worth $1,029 today before trading commissions. Not bad for two and a half years!!

What went wrong? Why has this major player, committed to providing the very best medical information for consumers hit the skids?


For several years, as the only major web outlet for drug companies, WebMd has been soaking its advertisers with exorbitant rates to reach the consumer and professional markets. They chose a monopolistic position they refused to alter. Pay or go away!

But monopolies eventually tumble, replaced by entrepreneurial newcomers in the form of Health Central Network, Everyday Health, Revolution Health, etc. …. a list that has begun to challenge "Ma Bell". Agencies and their advertisers long held hostage by WebMD now have alternatives that can ease the pain of high rates and an unwillingness to come to the bargaining table.

Where will WebMD wind up? If this commercial (spoof?) rings true, they are spiraling towards their own fate.

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1 comment:

Anonymous said...

It's all true about WebMD, but they do have lots of easy access to lots of info. But if they can't function competitively...they'll go away. Have you seen new site with Mary wells, etc?

Also take a look at brilliant spots on YouTube : by Flineo...political anti Obama ads with lots of strong tv smarts and communication skills.

mitzi morris