Two significant pieces of news today:Â Google’s earnings (and stock price) are down, and Newsweek has given up on a paper edition.The Newsweek story is only the latest step down a path to oblivion, as the digital edition cannot survive financially either and will close down in turn.
This is happening because the business models for providing content have collapsed. Newsweek is one dying gasp of a hybrid system whereby content could be denied to anyone who didn’t pay for a physical object, and the attention of readers therefore sold to advertisers who could be assured that (i) anyone reading the story on left-hand page 32 would see the nice big ad on page 33 and (ii) cared enough to plunk down 50c or so for the magazine. Google is a different animal, that sells ads with the promise that people seeing the ad had shown some interest in the type of product on offer.  What made Newsweek worth buying was the expensive expertise of its authors and editors and the expense accounts on which the former could get stories; what makes Google run is the utility of its search engine, maps, and other cool stuff, that we pay for by tolerating the crappy little ads that appear on tiny patches of a screen about the size of a two-page Newsweek spread, but cluttered with a bunch of other stuff. Or the infuriating big ads that pop up all over what you’re trying to read, infinitely more intrusive than advertising in old print media. That these ads aren’t a substitute for what print ads used to do is evidenced by how long ago it was that you clicked on one, and that the whole deal manifestly isn’t working out for Google. Continue reading “Continued collapse of the information system: two more dead canaries”