I have long felt that the second people start making serious money online the competition will get fierce and we’re back to where we were before. My only fear is that some of these codgers who run the media companies will not get punished enough to either rethink their relationship with content providers or lose their shorts to someone who understands the value of high quality content.
Most Internet companies are alive only because they are propped up by cheap venture capital financing that is in the process of drying up. On a straight up basis, a traditional media company with a strong brand and digital product should be able to out-compete all but the best Internet-only companies. In the past, traditional media companies were weak online out of fear of cannibalizing the offline revenue and cash flow that sustained their valuations and debt loads. They will soon have a great deal less to lose, likely under fresh ownership and management. It’s time for traditional media to rise up and exact its revenge.
One important thing to point out as well and this is where I disagree with the author on “re-booting” of media, is that owning media companies may not be as profitable as it once was. That doesn’t have to mean the contributors and employees get paid less either. It’s just that the owners need to love the product more than the greenbacks it delivers. That’s more of a re-booting of corporations which it feels like we may be in the midst of.