Business

There has been a lot of articles written lately on Rupert Murdoch's latest comments regarding the need to charge online readers for the content they access to the business model The Wall Street Journal utilizes. Murdoch recently announced that additional News Corp's newspapers would be charging users access to their online content.

Speaking on a conference call as News Corporation announced a 47 percent slide in quarterly profits to $755 million, Murdoch said the current free access business model favored by most content providers was flawed.

"We are now in the midst of an epochal debate over the value of content and it is clear to many newspapers that the current model is malfunctioning," the News Corp. Chairman and CEO said.

"We have been at the forefront of that debate and you can confidently presume that we are leading the way in finding a model that maximizes revenues in return for our shareholders... The current days of the Internet will soon be over."

That pay for content business model that Murdoch wishes to spread to the the rest of the News Corp holdings has worked pretty well for the WSJ. Yearly subscription to WSJ.com is around $100 and the business news site recently introduced a cheaper micro-payment system. Deane Barker recently pointed out this story on his Gadgetopia blog. Barker points out that this business model could possibly work for additional online news sources, but Murdoch needs "another big player on the bandwagon, and he might kick the snowball off the hill. Gannet? New York Times Company?". Barker's point is that for News Corp's subscription model to work, access to news content needs to be limited at other places online too. In my opinion, a fight against free online content is a war that has already been lost.

As a subscriber to the WSJ in both print and online content, I do see paid online subscriptions working for niche news sites. I however have serious doubts that the model can work for general news. People are willing to pay and only pay for content they can get nowhere else online. The news articles found in the WSJ is unique content and since its also content of value, I'm willing to pay for it. However, reporting general news is a much different game. Even if the majority of newspapers started charging access to their content it only takes one newspaper willing to offer that same story for free to break the pay for access model.

Like a lot of people, I too wonder what will happen to the MySQL, Java, and hardware once Sun is integrated into Oracle.  I have opinions but those opinions alone aren't worth a hill of NetBeans.  Luckily, people like Gavin Clarke know what they're talking about.  Clarke has written an excellent article at The Register titled,  Sun and Oracle: end of a beautiful dream.

The Pew Project for Excellence in Journalism does a fantastic job reporting annually on the state of the American news media.  The Pew Project's sixth edition for 2009 is no exception and provides lessons for all businesses on the importance of agility, adaptability, and competitiveness.  The following paragraph from the report's introduction says it all.

Journalism, deluded by its profitability and fearful of technology, let others outside the industry steal chance after chance online. By 2008, the industry had finally begun to get serious. Now the global recession has made that harder.

Today's Wall Street Journal has a great article regarding an employee swap between Procter & Gamble and Google, A New Odd Couple: Google, P&G Swap Workers to Spur Innovation.  The motivation behind the swap was to spur innovation between the two companies.

Google would like to have a bigger slice of P&G's $8.7 billion annual advertisement budget and better understand the needs of traditional consumer-market companies.  Meanwhile P&G still spends most of it's advertisement dollars in traditional media with as little as 2% of its ad budget online does need some help in making the leap online.

There is so much that I want to do here at CMS Report, but my time has been limited these past couple weeks.  Some things that have been going on in my world:

1. As a judge for Packt Publishing's Open Source CMS Awards, I gave the publishing company my vote on the "Most Promising" CMS.  I dedicated a couple weekends to get the job done and I plan to post my reviews after Packt announces the winners (October 28).
2. I made the decision to drop my reseller account for Dakota Hosting.  The number of clients I host are few and over the past two years I've only been breaking even.
3. My post on Dell's Inspiron Mini 12 netbook brought in quite a bit of traffic to the site.  It looks like I may be a couple weeks off in my prediction for when this new netbook will finally hit the market.
   

Those that have read my blog know that I do get on my soapbox from time to time about the state of education in the United States.  I can't help but be concerned about the future for America's young adults.  Too many students are not opting to stay in school to continue their education. If U.S. students continue their lack of motivation in pursuing an education, I can't help but be gloomy on America's place in the 21st century as a world leader.

"Your reputation and your character are what sell you for the next big job."

- Magalene Powell-Meeks, Deputy CIO, Jet Propulsion Laboratory, Quoted in "Me, Myself, and I", CIO, April 1, 2008

It looks as if Laura Scott, pingVision, had some free time on her hands. There are reasons free servcies on the Internet are free. Laura wants you to start asking yourself, "why?".

Is the future really free?

It seems we've entered an age where there's a land-grab happening for personal data and attention time. Look at all the web start-ups backed by venture capital. They aren't investing out of philanthropy. There's value there. YouTube is "free" but Google paid over a billion dollars for it. Why?

Here's a hint: It's not about the Tube. [Read more at Laura Scott's Blog]

"Blogging as a business is business. It takes business training and skills to make money with your blog."

- Lorelle VanFossen, "Business School for Bloggers: How to Make Money With Your Blog", Blog Herald, April 7, 2008

Last December, I mentioned my excitement about Drupal's project lead, Dries Buytaert, along with Jay Batson starting a company called Acquia. While it was known that the $7 million startup would focus on Drupal for the enterprise, what was not known was the products and services that would be offered by the company. In a press release today, Acquia finally unveiled its roadmap to commercially support Drupal.

The company announced the two initial products and services it will be offering, Carbon and Spokes. Carbon is Acquia's commercial supported version of Drupal which will focus on social publishing applications. Spokes is an update will be an enhanced update notification sercice that provides "site owners personalized alerts with actionable recommendations". At this time I'm, not clear as to whether Spokes will be available for just Carbon or for all Drupal distributions. Both services will be available through a subscription offering.