Advertising Uber Alles?
Murdoch referenced a prediction by Microsoft Chairman Bill Gates that “the Internet would attract $30 billion in advertising revenue annually within the next three years. To give you some perspective, this would equal the entire advertising revenue currently generated each year by the newspaper industry as a whole.”
A report in Paid Content, based on after-speech Q&A, quotes Murdoch as saying: “"I don't hold out any hopes for people to be paying for our Internet sites. They have to be popular enough to hold a lot of advertising.”
Thus one media mogul ranked content as less than a commodity, because even a commodity commands some payment. Content, it seems, is flypaper, valueable only if it catches eyeballs.
Those are some hard words for this middle-aged news-gatherer to swallow, but consider this other evidence, also gleaned from Paid Content.
The Financial Times is launching a free synopsis of its paid newspaper that will be delivered in the afternoon, both in print and online (PDF) versions. The Swedish newspaper chain Metro International, thus-far based on free distribution of easy-to-read print editions, is delving into free online publication through a new division Metro Modern Media.
Online advertising is clearly growing, and newspapers are seeing their websites deliver much larger percentage increases than their “mature” print editions. Paid Content noted that the New York Time said online advertising for the first quarter rose about 30 percent compared to flat or down performance for the print editions of its flagship
So which way is the content pendulum swinging, toward Free Rupert or the the Way of the WSJ? More tomorrow.
Tom Abate MiniMediaGuy Cause if you ain’t Mass Media, you’re Mini Media
18 Comments:
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