New York hasn't made a huge internet company yet because New York hates people on the internet. Case in point, Time.com's Top 50 Blogs feature: As Drew Curtis puts it, Time.com "SPREAD THE FUCKING THING OVER 50 PAGES WITH NO INDEX"... for the extra page-views.
Want to be much more profitable than Time Inc? Be like Google or eBay, and serve the people.
Finally, New York is coming around... strong. Stay tuned. Etsy, Meetup, Tumblr, and many more.