Tech Crunch had a rather funny take on why Bezos bought the Washington Post, but the more thought provoking piece was on the Post itself. (via @nixxin) Its premise was that the predictive analytics perfected by Amazon could be used to provide Post subscribers with personalized news feeds based on where they live and what they have read before. People browsing The Post’s Web site or tablet app could be served ads tailored to their past purchases, and then could buy products with a single click. Ironically, the last paragraph actually ends up validating the TC post.
It reminded of an earlier post of mine, in which I had wondered about the future of media in a social era, and though I did not use the words, asked whether a ‘marketplace’ kind of model for news creators and curators was possible. To be honest, I was still skeptical whether a business model could be worked out on this line of thought. But the entire WaPo purchase by Bezos, the subsequent discussions on the web, and this fantastic article at Forbes that brings out the radical shifts in management required for a firm to thrive in ‘the creative economy’, set me out on a new direction.
Media and advertising, like I mentioned in the earlier post, have had an intertwined life. What if media cannot now exist as a business on its own – the primary reason being that the value it provides -news -is being disrupted by technological innovations including self publishing tools? Does it mean that its role now has to be seen within the context of a larger business? We’re already well into the paid-earned-owned media cycle, and while paid is arguably on a decline, earned is now increasingly being controlled by the platforms. (FB’s Edgerank, for example) Does it not make sense for a firm to make relevant news part of its product offering, or part of a sales process? Of course, the dynamics would work different from a merchandise marketplace, but if news is a commodity, can’t its vendors be on a marketplace? Media corporations might not be able to sustain a business model with high overhead costs, but journalists could build a reputation and thrive, and the marketplace would decide their price!
The WaPo purchase is probably just another kind of vertical integration. Much like an e-com company India would build its own logistics or payment gateway and then even white label it, the far-sighted Bezos might have just taken the first step in evolving owned media in a scale and direction no one has ever thought of before. Journalism has mostly been subsidised by commerce – I’d say this is just another evolutionary necessity.
until next time, to each his own media..