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Newspapers losing the advantage of a medium consumers will invest in, making aggregation more viable than original reporting 8/5/08

Posted by Steve Boriss in Uncategorized.
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It looks like consumers may be paying for more and more of their media, with advertisers paying less and less, at least according to USA Today. We don’t tend to think of consumers’ investments in video games, cable, and satellite as payment for programming content, but they are, and there will be more and more of it. But, can’t it be said that consumers’ investment in newsprint has also been payment for content? What an advantage it was for newspapers that they could keep and use that entire investment for themselves. But, convergence to the Internet will bring an end to those days.

With consumer interest in buying news in print form likely to drop, and advertisers increasingly likely to shun them to market directly to consumers, will online papers suck enough money out of Internet advertising to pay for their newsrooms? More likely, they will find it much more financially viable to aggregate others’ stories more and produce original content less.

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