January 22, 2010

The Way Forward for Traditional News Content Generators

Content generation and content search/distribution are severable, particularly in this Internet age, but this distinction has always been possible had content generators/publishers chose to make it so in their earlier business models. Now they under under the hammer of competition for the once lucrative advertising dollars.

Today and tomorrow, the game's best hand is held by the distributors or those who control the revenue streams associated with distribution and ease of consumption. I think the best hope for content generators is to cut deals with (or own) the distributors who create the channels and have the ability to bill and collect either micro or subscription payments.

I think device manufacturers' products will eventually commoditize so that a Kindle, an iPhone, a tablet or a Droid will be differentiated only by screen size and a few customer convenience features. The valuable distribution management and customer 'ownership' will reside with the electronic distribution and consumption channels, e.g., the wireline and wireless carriers and the cablecos. Content is necessarily king, yes, but managing its distribution and consumption will likely be the bigger revenue magnet.
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