Tag Archive for 'business models'

Can the newspaper industry please stop their damn whining

Google is not a blood sucking vampire. In fact, the newspaper industry is a spoilt little brat.

Search engines such as Google and aggregators (like the constantly criticised techmeme) provide a huge amount of economic value for the newspaper industry. They enable discovery by people that are not regular subscribers to their content. They provide traffic, which drive up the page views, that enable them to sell inflated prices for perceived access to an audience.

Newspapers put their content on the web for free by their own choice. They have plenty of ways of excluding their content from being freely accessible, either through a paid wall or technology conventions like the robots.txt...But they don't want to completely do that, because they lose the traffic.

Subscription models will be the future revenue model for content. One where people will pay for constant access to a particular information provider (as fresh access - not static objects - is where the real value comes from in information and especially in news). Of course, this means people with established brands can only do this as people will not pay unless they know what to expect. However despite their current lead in this game due to their century-old mastheads, the newspaper industry is refusing to solely go down this route. And the reason for this, is because they still rely on advertising for the majority of their revenue mix - and advertising is driven by traffic.

Newspaper executives want the economic value provided by search engines and aggregators in discovery and traffic - but they whine consistently because these innovative new businesses in the information age have found a way to monetise this function in the value chain.

The solution is simple: cut public access, and put all content behind a paid wall. And only participate in exclusive aggregators. The search engines and free aggregators no longer have your content to add to their mix - and yes, you Mr newspaper executive no longer get as much traffic. But that's what you get for being a whining little kid.

I am sick and tired of hearing industrial age executives refuse to compromise with information age business models.

Half the problem has been solved with time spent

On Thursday, I attended the internal launch of the Australian Entertainment & Media Outlook for 2007-2011. It was an hour packed with interesting analysis, trends, and statistics across a dozen industry segments. You can leave a comment on my blog if you are interested in purchasing the report and I'll see if I can arrange it for you.

One valuable thing briefly mentioned, was the irony of online advertising.
Continue reading 'Half the problem has been solved with time spent'

The Wizards of Oz

The Internet has enabled a new world-order, causing people from the CEO down in almost every industry, an amazing amount of grief. The music industry, the newspaper industry, the telecommunications industry - heck, even tangible non-digital products like books - have been challenged at the core. However what these CEO's have begun to realise, is that the Digital Age is no longer a threat, but a vehicle for growth.

Innovation is a key source of competitive advantage. And if you are an established company, innovation is hard. What takes six months of trying to convince the right people, jumping through hoops to keep internal stakeholders happy, and then finally releasing a half-baked product that is dramatically cut down from your vision - could be done by a bunch of college students in a garage over a weekend. Economies of scale is no longer an advantage in the Information Age - small, agile teams are.

In America - Google, Yahoo, Microsoft, News Corp, IAC and the rest - rely on acquisitions to fuel their innovation. An amazing amount of innovation is occurring on the web at the moment - not just new products but new business models. And the above mentioned companies have realised that acquiring a start-up early on, is a cheap way to innovate - as well as a great way to recruit.
But what about Australia?

Like America, we have a strong Internet industry with some clever entrepreneurs. But unlike America - no one is acquiring them. Could it be executives of this country's leading companies just don't know how much talent is available onshore? Well working in a professional services company that advises these companies, I am sure of it. Even a tech-savvy person like me is still discovering the amazing amount of talent and potential in my city, let alone country.

So here is to educating - both you and me - as I begin to start profiling innovation in Australia To make a suggestion for me to review on my blog, post it here