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All The News That's Fit To Scan

Producing original news content looks like the next big thing, except when it doesn’t. Harkening back to earlier times, ad sellers are offering original news content to attract readers or viewers or surfers. It worked before, why not now?

highlightsSoftware giant Microsoft is preparing to offer original news content through its MSN web portal. On the whole it will be a “big, multi-million dollar investment” is a “decent-sized media operation,” said MSN general manager Bob Visse to techie website Mashable (October 1). Offered will be smartphone and tablet-friendly 300 to 500 word “news bites” as well as aggregations from Reuters and AP and all, or most, will be apparent at the end of October when Microsoft launches smartphone and tablet-friendly Windows 8 and a redesigned msn.com website.

A newsroom operation has been built-out in Redmond, Washington, Microsoft’s hometown since vacating the MSNBC joint venture with US television network NBC in July. “We still have a relationship with MSNBC, but we're going to have our own news product called MSN News,” said Mr.Visse. The MSN portal is visited by nearly a half billion folks each month and pouring more potential customers into the site is good for business.

Among the formidable tech companies producing original content, from news to TV shows, has been integral to web strategies. Microsoft launched the online current affairs magazine Slate.com in 1996 with plenty of original content, tried a paywall in 1998, abandoned the paywall in 1999 and sold it all to the Washington Post Company in 2004. Microsoft has big plans for original content for its Xbox console, hiring former CBS Television Studios president Nancy Tellem in September to build up a Hollywood studio operation.

Search engine company Yahoo! developed news portal Yahoo! News to augment web traffic, primarily as an aggregator of news agency material. That strategy shifted and last year top US journalists were hired to bolster original reporting. Yahoo! News appears in more than two-dozen countries and have been top ranked as a news website. In August Yahoo! News launched on its Twitter feed “a talk show conducted over social media.”

And then there’s Google. The search engine giant steadfastly denied interest in producing original content for Google News. It’s a different matter for Google-owned YouTube. Google News is, for some, the ultimate news content aggregator. Publishers continue to whinge about receiving no Google money for headlines appearing in search results. Google – the search engine powered by ad sales – benefits from a near endless supply of “original content” from a zillion sources.

Google’s share market value leaped over Microsoft’s, reported Bloomberg (October 1), hitting US$249 billion. Both still trail Apple’s market value at US$618 billion, the world’s most valuable company. Beyond the Windows 8 release, Microsoft followed most all tech companies into tablets and smartphones.

The Apple brand was the fastest rising in Interbrand’s 2012 ranking of the top 100 global brands (October 2), ranking number two behind Coca-Cola. Amazon, also delving into original video content production in a deal with Warner Brothers, was the second fastest rising global brand. Facebook debuted at number 69.

And so, specialty news content providers are all the rage, sometimes called vertical content. It’s based, in part, on the Surfer, Snorkler, Deep Diver theory of information consumption, where “surfers” simply scan information broadly and contribute themselves as advertising targets. The “deep diver” looks for depth, often highly specific, and will pay for it. Both can be valuable business models.

By producing original news content, Yahoo! News and, now, MSN News have greater ability to target content and, therefore, ad targeting. Being the search market leader, this is less of an issue for Google News…so far.


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