Monday, 10 December 2007

IHT and Reuters Deal: The Wave of the Future?

According to Silicon Alley Insider the IHT/Reuters deal is 'the wave of the future'.

'The deal is a necessary step for two struggling news organizations. It is also likely the wave of the future.The primary business model supporting the traditional news business--print newspapers--is crumbling. The cause of this disintegration--a free, global publishing and distribution system called the Internet--has also vastly increased competition.The combination of these two factors amounts to a one-two punch to the news industry: First, undifferentiated content is now too expensive to produce relative the revenue that can be generated from it, and second, there's way too much content that is duplicative. The only way news organizations will survive, therefore, is by reducing content-creation and distribution costs and making their content more differentiated. Deals like this are one way to make this happen.'

Why an existing IHT/Bloomberg deal couldn't be turned into a wave of the future, I don't know. All postings from Bloomberg insiders welcome....

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