Monday, January 23, 2006

The "Social Contract"

In yesterday's post there is a reference to the the social contract for newspapers. Just wanted to add one more thought. The social contract for newspapers is not that "newspapers derive revenue from community advertising".

That's the business model.

The social contract has something to do with delivering information so that citizens can make informed decisions in their everyday lives and entertain them with useful and interesting facts, not spin, that enrich their daily experience. Maybe part of the problem for newspapers is that they've been blinded by an outmoded business model, that focuses on the advertiser instead of the customer. Traditional business models work for a long time, and then they don't.

Following a 20th century business model in the GME is probably not sustainable. Global business now finds itself in the same situation as small business. They have to have to make money by honestly serving their customers.

In a world of IAI, they will win only by being better, faster, cheaper than the competition. Whether that competition comes from small business or the internet.

Welcome to the real world.

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