Saturday, November 20, 2004

Eliminate the competition

The New Wave ponders the question of possible acquisitions of online media by traditional media giants following last week's purchase of MarketWatch by Dow Jones. Analyzing the market trends, which have seen online advertisements grow in times of mediocre performance of the print media, it might actually be worthwhile for media giants to add online media to their assets. Adam L. Penenberg, of Wired News, argues, "even though it's beginning to feel like the internet boom days of old, you likely won't see real-world companies paying ridiculous sums to buy their way into cyberspace." The acquisition of MarketWatch by Dow Jones is explained by Jeff Jarvis, president of Advance.net, "Dow Jones has been leaving ad dollars on the table because it's a paid site. Now it could increase subscriptions and advertising revenue at the same time through MarketWatch. It works pretty well when you can have a paid site and a larger free site." According to Sam Whitmore, editor of Sam Whitmore's Media Survey, over the next 12 to 24 months you will probably see big media companies scarf up these cult destinations, where a growing number of people are going for opinions, analysis and community. "Look at what happened politically," Whitmore said, when blogs hit the big time during the presidential campaign. "The same thing will happen in business, because people know they don't need to head to branded sites for good information. Bloggers can be trusted to be independent and people will turn to self-published experts for information."


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