Monday, October 19, 2009

Model in the freeconomics?

Dual Model in the freeconomics market?

In the debate of charging news content on news aggregate sites and the points made by Ghosh and Anderson, it seems a dual model emerges and could lessen the pains of current news industry: first, to negotiate the ads revenues with Google, Amazon, etc. and second, to generate the values of the news product.

The questions to the first include,
1. how to calculate the amount of advertising revenues of newspapers’ online content or online traffic which is moved or grabbed by Google or other news aggregate website?
2. Since DMN paid so much cost in generating content (how much in generating only the content and how much for other investment?), how much is reasonable for Google to pay? If Google doesn't aggregate the news, will DMN’s online website attract enough attention?
3. Similar case, is 30/70 a fair deal and a good model? (DMN and Amazon)
(4. Why the case focuses on DMN?)

The ideas to the second one includes Anderson's and Ghosh's non-monetary rewards, and it seems the human resources concept is used in Anderson's GeekDad case: how to find the best person to write and how to manage the covered issues.

As the famous bloggers in Taiwan, many are good at transforming the nonmonetary resources (reputation, attention, reproduce the content) to monetary rewards. They might not earn money from blogging directly at the beginning but are beneficial from it in a different format. However, not everyone is good at or fit for this strategy, especially to big news organization, which can use its content in different way but need to consider the objectivity idea and the welfare of the employees. In addition, under the growing nonmonetary reward system, is the labor issue easily ignored?

I think Anderson's article itself exemplifies how to make the best use of the content, the product, by promoting his website and the new book naturally within the articles.

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