The Death Of (Online) News

Rupert Murdoch announced that all of his News Corp business will being charging for content. Let me be the first to say goodbye to News Corp.

The Financial Times is also floating the same ballon that within the next 12 months "news agencies" (Read: The Financial Times) will begin charging for content as well. At least the FT had a 120 + year run at it. I, personally, am looking forward to watching the prestige and power quickly and quietly drifting away from any news organization who walks this path.

What does all this talk of charging really mean? I think means that news agencies are realizing that the internet bubble of 2000 actually ended. It also means that the current financial crisis is bringing their empires to an abrupt end....and we've just caught a glimpse of the hand they're holding. If they're losing too much money, why not just shut the site down and avoid the embarrassing fade to insignificance? I have a theory....

First, lets take a look at the brief history of news:

1. First there was gossip/rumor
2. Then there was government controlled 'news'
3. Then the free press got in on the game to help form public opinion and foment revolutions...somewhere around the time of the American Revolution (with their pamphlets and all....)
4. Then people started charging pennies for pamphlets to cover their printing costs
5. Weekly/daily newspapers started popping up in populated localities, usually charging enough to cover the business costs
6. Advertising was introduced as a way to "make money" in these newspapers
   
7. Radio came along with no way to charge so the profit/expenses were all covered by advertising (and payola).
   
8. TV came along with the same problem, so the news was given for free (just like radio). It was done at a loss that was made up for by advertising on the 'entertainment' side of the business. This was done because the networks realized the news gave them leverage to use against the government. As a result, TV networks (and to a lesser extent, a few newspapers) gained power as the unelected mouthpiece of a nation, forming public opinion as they wished.
   
9. This bloody internet thing came along (to upset everything) and the established media saw it only as a way to extend their TV/newspaper reach.
10. Magazines and Newspapers get into the game thinking they can charge the same price for their electronic product as their paper product (and it costs almost nothing to distribute). It fails miserably (with few exceptions).
    
11. Everybody is happy with the results until the Great Depression of 2008-?
12. All the established news organizations realize they're going bankrupt because advertisers can't afford to pay the fees anymore. Desperation sets in.
13. People like Murdock float the idea that they'll begin charging everyone for what they used to get for free.

Sounds like a great plan in the midst of a massive global economic depress..err..recession. Day-dreaming of the good the old days won't help the bottom line of News Corp or any of the other faded, fat, greedy news media. If Murdock goes through with his promise, News Corp will quickly be reduced to insignificance.

I predict however that they will quickly change their mind, much like an airline trying to raise airfares by itself, when their page hits drop 99% [On a side note, I can't wait to see the look on a Fox reporter's face when President Obama answers one of the (last) Fox News questions by starting with "You can tell you 15 readers - it is 15 right? or did you guys get a new subscriber in the last week ?- that the reason..."]

But it won't happen, because charging won't happen. Because after all, what mass media is about is power. The power to sway opinion. And it's a power people like Murdock are willing to pay for, even if they have the audacity to try charging you for it.

Rupert and Friends would be smart to remember the Encyclopedia Britannica. Once a proud source of knowledge, for over 200 years, now relegated to a dark, seldom visited corner of the internet/library.

That all happened after this site showed up just 8 years ago: Wikipedia - Much maligned, but still triumphant.

Just wait until you see what the plan is for your kingdom. The free ride might be over, but that doesn't mean people will pay to ride. They might just go back to walking.