Reuters reporter Yinka Adegoke reported November 27, 2009, that, “The growing influence of the Web to distribute news, video and other content, combined with the lingering economic malaise, have left many media executives and investors uncertain about where to make their next bets.” See “Media business at crossroads as deals pick up.” According to Adegoke:
The dilemma boils down to whether a modern media company should focus on building content at scale, or if it also needs to own the pipes to deliver that content.Adegoke said, “What worries media companies is that Wall Street will rethink their stock valuations if content becomes widely available on the Internet for free, or close to free.” Translation: Major media outlets are worried that if they don’t prevent the free distribution of content, it will be universally viewed as a commodity.
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