It is fascinating to note the re-emergence of the value of quality content on the Internet today. With the acquisition of MarketWatch by Dow Jones for $520 million in late 2004 and The New York Times Co picking up About.com for $410 million in early 2005, content seems to be donning its Kingly crown once again.
But what’s really going on here?
We’re convinced that great content organized well for both searching and browsing has always held tremendous value. Content itself hasn’t changed. What we’re witnessing is the rise of new business models to monetize content on the Web through techniques like contextualized search advertising and highly targeted ad sponsorship programs. Big media sees the future potential of new advertising models and is taking a "buy instead of build" mode to becoming players in the new world of Internet advertising.
There’s no doubt that quality content delivered when and where users want it and in the form that they prefer has always had tremendous value.
With many of the available established businesses going to big media players recently, we predict a rise in new Web-based content companies who will think of new and interesting ways to deliver news and information and make money doing it.
Of course, the new businesses will need quality content to drive their products. It’s certainly an exciting time for Newstex to be in the news business.