Showing posts with label Huffington Post. Show all posts
Showing posts with label Huffington Post. Show all posts

Monday, February 14, 2011

At Huff Post and Social Media Networks - A Nation of Serfs, and a "Tom Sawyer Moment"

David Carr, NY Times:
... The Huffington Post, social networks and traditional media may all seem like different animals, but as advertising, the mother’s milk of all media, flows toward social and amateur media, low-cost and no-cost content is becoming the norm.
For those of us who make a living typing, it’s all very scary, of course. It’s less about the diminution of authority and expertise, although there is that, and more about the growing perception that content is a commodity, and one that can be had for the price of zero. (Content manufacturers like Demand Media that gin up $15 articles based on searches, put the price only slightly above that.) Old-line media companies that are not only forced to compete with the currency and sexiness of social media, but also burdened by a cost structure for professionally produced content, are left at a profound disadvantage.
For the media, this is a Tom Sawyer moment. “Does a boy get a chance to whitewash a fence every day?” he says to his friends, and sure enough, they are soon lined up for the privilege of doing his chores. That’s a bit like how social networks get built. (Just imagine if Tom had also schooled them in the networking opportunities of the user-generated endeavor: “You’re not just painting a fence. You’re building an audience around your personal brand.”)
“The technology of a lot of these sites is very seductive, and it lulls you into contributing,” said Anthony De Rosa, a product manager at Reuters. “We are being played for suckers to feed the beast, to create content that ends up creating value for others.”
Last month, Mr. De Rosa wrote — on Tumblr, naturally — about how audiences became publishers, essentially painting the fence for the people who own the various platforms.
“We live in a world of Digital Feudalism,” he wrote. “The land many live on is owned by someone else, be it Facebook or Twitter or Tumblr, or some other service that offers up free land and the content provided by the renter of that land essentially becomes owned by the platform that owns the land.” ...

Monday, February 7, 2011

AOL to Buy The Huffington Post for $315 Million

Pay nothing for content; aggregate that content; build brand; sell franchise for $315 million. And there you have it. Huff Post's profitability, however, remains an unknown. But AOL seems only to have paid about seven times gross revenue, so from that perspective the price is quite reasonable. NYTimes: "The deal is AOL’s biggest since separating from Time Warner in 2009, and showcases the company’s intent to focus on original content. (In September, AOL bought TechCrunch, the influential technology blog founded by Michael Arrington.) But it also represents a major media move by The Huffington Post’s co-founder, Arianna Huffington. ... "