"There is always a philosophy for lack of courage."—Albert Camus

Wednesday, September 20, 2006

Competition on the Web

As noted earlier on several occasions in this space, big media companies are doing their level best to extend their current broadcast, cable, and satellite hegemony to the internet. Rupert Murdoch talked about his firm's strategy yesterday. News Corp's approach goes against the grain of current trends, which is for media firms to develop connections with internet portals.

Murdoch said that News Corp, the parent company of the Fox brands, is going to use a moden in which web surfers are expected to go directly to the firm's various sites. AP reports:

Rupert Murdoch told an investor conference Tuesday that he didn't see a need to distribute programming or other media content from his News Corp. conglomerate through Internet portals.

Murdoch, asked why he hadn't made deal with large aggregators of online content like Yahoo Inc. (Nasdaq:YHOO - news) or Microsoft Corp.'s MSN portal, said he didn't see that strategy as necessary for building Internet traffic.

"We're not sure the portal model is the way of the future at all," Murdoch told a conference sponsored by Goldman Sachs. "We think people are going straight to the sites."

Murdoch, whose acquisition of the hugely popular social networking site MySpace.com has inspired envy among other media moguls, cited the example of Yahoo's HotJobs employment site, but noted that Internet users might go to any number of other Web destinations that also carry job listings.

Given his history, I wouldn't bet against him.

From Karnick on Culture.

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