Old Media’s Last Stand?

Here’s the problem: You used to control information and get paid to dole it out. You were fat, dumb and happy until technology caught up to you and people began to expect to get your stuff for free. Free, you soon realize, is hard to compete with. Welcome to the world of newspapers, network television and radio; and this week some interesting developments have been leaked that seem to be an effort (finally) to even the playing field.

Google, as I’ve written, has changed the world by making almost all internet content available at the click of a button. Their business model allows them to give content away because they sell billions of dollars worth of “opt-in” advertising, in the form of pay per click ads. The problem with Google, according to it’s competitors, is that it is using other people’s content. Traditional media has been slow to react to technology (make no mistake, if it wasn’t Google, it would have been someone else) and this week some news from Apple, the NY Times and the Pants on The Ground Guy showed that content providers are interested in engaging the mighty Google.

The news IS free. That’s what a friend of mine who councils several major Fortune 500 companies about media told me. If a house in your neighborhood catches fire, you can go watch the firemen put it out and (hopefully) save the puppies. Reporting, however, is not free. If you want someone else to watch the puppy rescue and tell you about it, there should be a monetary reason for him to do so. The business models of newspapers (and most media) is being forced to change as web sites, IPODS, streaming music stations and all things free come along.

For sure, it seems to be difficult for anyone to make any money on internet popularity, unless you are Google. Did you see that Pants On The Ground You Tube video from American Idol? Millions of people have and General Larry Platt, the suddenly famous singer/ composer has hired an attorney to help him copyright the song and “monetize” the millions of views his “content” has generated for Google’s You Tube. While Larry may get some appearance money and a small record deal, I wonder how much Google will make in selling pay per click ads from his composition?

The New York Times recently announced a plan to allow registered users a certain number of views per month without charge to their on line editions, with a small charge to view after. Other media companies (like Fox, who asked Google not to display Fox content in search results) will be watching this experiment closely. The real shot over Google’s bow was fired by Steve Jobs.

Jobs, the angel and genius of Apple was an early supporter and board member of Google but the whiz kids at the two tech firms have had a falling out recently. Google’s growing dominance and entry into the phone market has apparently rattled Jobs. It was leaked recently that Apple is in talks with dreaded enemy Microsoft to switch the I Phone search engine to Bing, Microsoft’s new version of search. (It is rumored that Bing stands for: Because it’s not google.)

More interesting is the expected announcement of Apple’s new tablet computer, a supposedly souped up version of a reader like Amazon’s Kindle. It is thought that this new device might become as ubiquitous as the I Pod, with an ability to view (and buy) content like books, text books, movies, TV shows and other media. Here’s the future: You turn on your device and read your local newspapers account of your favorite team’s game last night, then you click on the video highlight of the game from the national sports network. Are you on the internet? Watching TV? Reading the paper? Will it matter? It won’t, future generations won’t see information as anything other than information, the source won’t be as important when everything is delivered through one portal, one device. Old media is hoping that Apple has found a way to continue to be paid to deliver information to us.

We who create content should keep an eye on this one, it will affect how we get our work out there and whether we will eventually be paid for it. In the meantime, Pull up your drawers!

Rick DiBiasio is the Owner and Branch Office Manager of a Raymond James Financial Services Office. 3704 Winter Garden Vineland Rd. Winter Garden Fl. 34787

This information is not intended as a solicitation or an offer to buy or sell any security referred to herein.