Eric, What's wrong with making a reasonable profit as a news organization? I agree with you that there is a race to the bottom going on because the econopmics of online news continue to worsen.

At some point, we have to figure out how to reward news organizations doing a good job otherwise we are in serious trouble as a society. That's what I would like to see Mr Hellman's money go towards -- figuring out a solution to one of the most difficult problems we have.

Gabe: You should get a press pass and if you don't, you should ban SXSW stories from Techmeme. (SXSW gets very noisy, you'd be doing us all a big favor :)

Money is neither noble or ignoble. It is value-neutral.

Danny: I agree... But press passes aren't free this year. They cost $299. Gabe can afford $299.

Eric: What's so noble about a non-profit status in regards to news organizations? What's so noble about relying on handouts from billionaires to produce local news?

If we can develop profitable news business models then we will have competition, and that is good for news, good for everyone.

While I'm no fan of the way the BANP has acquitted itself thus far, your comment that "There's plenty of 'non-profit' media businesses around, the largest local one is the San Francisco Chronicle." is glib to the point of meaninglessness.

Free the Gabe 1! The Techmeme 1?

Seriously, if there are any TV editors getting passes, then Gabe should. Press isn't just defined by writing stories.

It is "underground" now because the consultants are pretending Social Media is a big "secret" worth $22K/ day (see my post on this - Is Chris Brogan Worth $22K?http://micurl.com/wpFeo)

As a client trying to buy social media services -- it is too hard today. There many little "bits" running around without a mature understanding of how to create value through a programmatic marketing approach.

I think many PR/communications professionals are still getting their heads around the new media world order. What's surprising here is this happened at SXSW.

Judy, yes, it is a new mdoel but is it already broken? One of my contacts told me that there is a lot of social media marketing going on but that it is underground. I thugh that the point is for it to be seen, rather than be 'underground.'

Ted: Yes, I agree, some big roll ups on the way. Every week I'm introduced to yet another successful ad network I've never heard of, with tons of people and VC money. They have the upper hand right now, but ad networks are not a sustainable business long term, imho.

I agree re the sophisticated news consumer. Note that this consumer is probably more likely to respond to the news in some way as well.

Tom,

My biggest beef with the Poynter Online piece is the implication that auctions only work well for high priced goods which strikes as basically ridiculous.

In addition, I concur that the notion of creating artificial scarcity will not work either.

Fact of the matter is that there are too many *bad* advertising units out there that will get sold at rock-bottom prices. Competing in that space is like selling the colored rocks you put in the bottom of fish tanks.