Arrington's Roll-Up The Blogs Strategy Won't Work - You Can't Roll Up Egos
By Tom Foremski - March 19, 2008
Mike Arrington, publisher of Techcrunch says that it should be possible to roll up the top tech blogs into a "big fat CNET crushing $200 million/year in revenue business."
Dan Farber, editorial chief of CNET's News.com, says bring it on:
It's pleasing to have Mike and others targeting CNET. It must mean that we are at the top of the heap. Competitve envy comes with the territory.
In his post: The blogosphere's Napoleon Mr Farber points out a simple fact that gives CNET an edge over blogs such as Techcrunch.
...importantly, our troops across CNET News, Webware, Crave and Reviews are in the field as I speak, getting after the important stories.
Blogging is not reporting...
I agree. I'm out nearly every day and often in the evenings too, getting original content, scoops, news, and analysis. Most of the content on Techcrunch, and other blog sites is commentary on the news.
Techcrunch does get some great scoops from time to time, but that's not its main business, which is profile of web 2.0 startups. And that is true for the other high traffic blog sites.
You can't crush CNET with blog posts about news stories and profiles of online service companies.
Ego aggregator...
And there is another reason a rolling up the top layer of the blogoshpere won't work: it's a personality driven business and the egos can barely fit on the Internet let alone within a single company. Would Om Malik work for Mike Arrington, or vice versa? No way. That's true for every other A-list blogger.
Roll-ups and consolidation are a natural trend within all industries. Companies acquire other companies and reap economies of scale and other competitive advantages.
You can roll up companies but you can't roll up personalities.
Already rolled...
Also, the roll up has already been done. FM Publishing did it and continues to do it. It signed up many top blog sites to its advertising network.
And Dan Farber already did it too. When he was over on the ZDNet side of CNET, he collected some of the top bloggers in the tech sector (see my blog over on ZDNet - Tom Foremski IMHO.)
Cult of personality...
My strategy with Silicon Valley Watcher is to gradually move it away from being associated with my personality and towards building a strong editorial team staffed by media professionals - reporting on the business and culture of Silicon Valley. If that sounds like a traditional media firm that's because many traditional media principles still apply.
Today the distribution channels are different and the business models for media companies are different. But there is a lot that hasn't and won't change.
What hasn't changed is the fact that teams of media professionals create great media consistently. That's a far more effective and scalable business than personality-based media (i.e blogs).
Giant blob strategy flaw...
Also, Mr Arrington's analysis of the CNET crushing capability in creating one giant blob of a blog site is seriously flawed.
The disruption to CNET and other large media companies is coming from search engine marketing, not from blogs. Quite simply, it is more effective to advertise on a search engine than on a news site.
GOOG's quarterly financial results show this very clearly. Each quarter revenue growth from its own sites outpace revenues from content-partner sites such as the New York Times.
It is search engine marketing that might eventually crush CNET. It certainly won't be a blog site, no matter how many blogger egos are crammed into it.
Share with Bit.ly
March 19, 2008 | Permalink | Comment | Category: Mediasphere | Subscribe to SVW
- Top Stories:
- Socialbrite: Helping Non-Profits Master Social Tools For Social Change
- The Pressure Is On When Every Company Is Now A Media Company...
- Vinod Khosla: How To Succeed In Silicon Valley By Bumbling And Failing...
- Saturday Post: If You Are In The Path Of A Disruptive Technology You Are Toast - Goodbye Newspaper Companies
- SDForum Garden Party Notes: Vinod Khosla is the Antichrist; Jim Clark has a size problem; Silicon Valley Trophies - Hot women and large yachts...
- Traveling Geeks Trip Next Week ... Join Us In London!
- Bitten and Smitten: Why Journalism Is Like Falling For The Wrong Person
- Year One: The Lessons Of The Intel Insider Media Advisory Program
- UberCEO Survey: CEOs Of Fortune 100 Snub Social Media - None Blog, Only 2 Twitter
- From Big Blue To Big Brown - IBM Launches Green Services In Smart Sewage And Beyond
- Keeping It Real: PR's Real-Time Web Challenge
- A Saturday Post: The Internet Devalues Everything It Touches, Anything That Can Be Digitized
Comments (3)
Quite why the blogosphere should be different to any other business or other entrepreneurial environment beats me. Media has been one of the most active sectors for M&A in the past few years. (in fact, it's been going on since the beginning of time.)
Self-regard doesn't get more inter-galactic than Tyler Brule's and he stuck with Time Inc for six years after it bought his creation, Wallpaper. And how about the countless monstrous TV luvvies who've folded themselves into TV production consolidators? They may not have loved it, but the likes of Shed Productions or Ten Alps in the UK have built up pretty handy businesses on the back of such consolidation.
As an "old" media business that's moving rapidly online (and gaining much as a result), it's remarkable to observe the "new" media belief that they are somehow immune to the natural order of business.
Here in the UK, one of our best-known bloggers (Iain Dale's Diary) has just been loaned a big chunk of money by Conservative benefactor Lord Ashcroft to move offline and launch a free-circulation print publication called Total Politics. Dale told the Guardian: "We looked at other ways of doing it, including online-only, but we weren't convinced that it could work. Given the age demographic of our potential readers, how many were actually going to download a PDF?"
Ego-management is the time-honoured role of the publisher. And it'd probably be easier for them to tend to their reluctant incoming bloggers - at least they wouldn't have to have them in the office!
Posted: March 20, 2008 4:14 AM
Matthew, you make some good points. I think it would not be a problem for a large company to acquire a popular blog site but Techcrunch would find it very difficult to acquire a rival such as GigaOm. And that would be true for other blogs acquiring each other.
Also, why acquire? If you can run the advertising network, such as FM Media, you can have many of the benefits without needing to do ego-management, or should we say diva-management :-)
Posted: March 20, 2008 1:51 PM
Successful companies are built on substance, not ego. Ego often plays a significant role, but if the fundamentals aren't in place, there's no business.
Mike Arrington's self-delusion and grandiosity are missing one key point: grounding in the reality of news gathering.
Tom, thanks for a nice analysis.
Michael Krigsman
ZDNet Blog: http://blogs.zdnet.com
Twitter: http://twitter.com/mkrigsman
Posted: March 21, 2008 10:08 AM