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Against Monopoly

defending the right to innovate

Monopoly corrupts. Absolute monopoly corrupts absolutely.





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The Good, The Bad, and The Pathetic

Via Robert Levine an an opinion piece in the Los Angeles Times explaining that newspapers need to be able to copyright facts in order to survive!! (You didn't think they would publish an opinion piece explaining that newspapers need to go the way of the buggy whip did you?)

If ever there was an article at war with itself, this is it.

Today, newspaper websites attract millions of readers, so why can't newspapers successfully compete online? After all, they still originate most of the nation's news. Part of the reason is that online ad rates don't begin to match print ad rates.

Why? A big reason is what economists call free-riding. Practically anyone can start a website and get software that snags fresh online news from those who originate it. Website owners pluck the freshest, most interesting reports and quickly post condensed rewrites. That costs them little, and they then surround the rewrites with cut-rate ads.

Children...children - if you are attracting millions of online readers then apparently free-riding isn't costing you your readership. If you cut off the blogs do you think your readership will go up? Or down? Links to articles on blogs (this one for example) drive traffic.

Technological change obsoletes business models. Most likely it means the end of the daily newspaper as we know it. Does it mean the we will spend less money and effort gathering news? Unlikely...as reporting from newspapers disappears the demand for news won't go down. So demand for substitutes with different business models - weekly newsmagazines, television news, blogs, will go up. Many reporters and a few newspapers executives will make the transition to new business models. The rest will join automobile workers on the unemployment line.


Comments

Here is my feed back that I sent to LAT Editors, because no direct feed back to the article is available. You would thing the 'Opinion' will have this feature, but not at LAT.

Dear Sir or Madam,

This article by David Marburger and Dan Marburger called "The free ride that's killing the news business" is the primary reason why the newspapers are going out of business, not the so called 'free riders'.

Let review the problems: 1. If the newspapers are producing all the stories that 'free riders' are republishing why they are making money not the newspapers? a) Because the newspapers are filled with so much garbage that I don't have time to filter it and find the important staff. Than is why, I need someone to do it for me. b) Because the newspapers are so biased in order to pleas their sponsors that I have to read all of them in order to get full picture. That is why I need someone to read them all and present me the different points of view. c) Because I had to really spend 1 min to find out how to send my comment. Learn how to have open discussion about the news!

2. Copyright is bad. It is going to die sooner or later. And any business model based on it will die with it. You can try to stop it, but this attempt will only delay the progress. Current newspaper business model is dead all ready. Find a new one. If you have the news before anyone else you have the biggest advantage. You can put the 'free riders' out of business over night by providing the same service they provide. They don't provide the news they are serving me to filter the news in the way I want. Do this and I will be back on your web site.

3. You have to realize that your readers are paying your salaries not your sponsors and political friends. Go back and be journalists and news agents not someone's political propaganda tribune.

Best regards, ...


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