New Media and Newspapers

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There is a good blog post by Andy Kessler on newspapers and new media. Kessler sums it up pretty good, “Media, after all, is about owning a pipe — some conduit between the creation of news or entertainment and the eyeballs that consume it.” This is worth reading. The problem, as I see it, is that the lower profit margins that Web 2.0 disruptive startups like Craigs List can thrive on are non-starters for established media outlets. They have to be able to make the kind of return on investments that their former business model allowed just to be able to pay their bills. How can they invest in new media technologies that do not yet have established business models, especially when they have so much overhead?

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