The Net Effect: An Optimist in the News Business
The disruption of ‘legacy’ newspapers by the Internet should be welcomed and celebrated.
The new technology arrived just in time. Over the next few years it will replace the paper-based process that was both hugely expensive, and that, by its nature, gave overwhelming control and political power to a small number of huge media organisations.
Online news slashes the costs of news delivery, weakens the monopolistic news organisations and enables a vast number of voices to be heard.
We are now living through a transitional period between the old technology and the new, during which the revenue from online-only product cannot support the gathering and production of the news, due to the limitless inventory of advertising space available on the Internet.
Morry Schwartz believes that this problem will be solved with the development of highly targeted and personalised advertising on the internet, and importantly with the advent of a paid- content model, which will bring with it many blessings. The greatest being that in order to be successful, media companies will need to offer such valuable and desirable content that people will be willing to pay for it!