The web is changing business models more quickly than ever
December 10, 2007
Amazed to hear today about Reuters new deal with the International Herald Tribune. Reuters have agreed to allow the IHT to carry their content in return for a share of the advertising revenue generated. This is a major change in their business model (a change for the better as far as I am concerned).
News wires traditionally charge a subscription fee for content sites to carry their story and distribute it. This is a great step towards becoming a 21st century company for Reuters. They have the potential to make much more money from advertising than from subscriptions.
Yes, subscriptions are a safe flow of revenue, but by being mature and allowing people to use their content for no upfront charge they actually stand to make far more money.
Well done Reuters for wising up to the web! Next step, make it truly free (although this is a good first step)! And well done to the web for continuing to shake old media at it’s core and forcing them to grow up to keep up!