Sunday, January 22, 2006

No room for Indirect Value in the GME

New York Magazine has a profile of Craigslist that is obsessed with how it is stealing classified ad revenue that "belongs" to newspapers. Newspaper people are kind of hysterical about it:
"There has been a social contract for hundreds of years -- news-gathering organizations derive revenue from community advertising. Well, Craigslist is changing that equation. That symbiotic relationship is over. Who's going to step forward to support news-gathering?"

Social contracts are for the government, not for businesses. Any business whose revenue is not tied directly to the value given, especially those whose position is based on control of information distribution (TV Networks, Newspapers) should take a long hard look at their business models. In the GME, there is no room for indirect value.

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