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January 17 2012

18:00

NewsRight’s potential: New content packages, niche audiences, and revenue

When NewsRight — the Associated Press spinoff formerly known as News Licensing Group (and originally announced by the AP as an unnamed “rights clearinghouse”) — began to lift the veil a couple of weeks ago, most of the attention and analysis focused on “preserving the value” of news content for content owners and originators. In the first round of reports and commentary on the launch, various bloggers and analysts quickly made comparisons to Righthaven, the infamous and all-but-defunct Las Vegas outfit that pursued bloggers and aggregators for alleged copyright violations.

But most of that criticism misses an important point: Would NewsRight’s investors, all legacy news enterprises, really invest $30 million in a questionable model just to enforce copyrights? Or are they investing in a startup that has the capacity to create revenues from new, innovative ways of generating, packaging and, distributing news content?

While some of the reactions point to the former, I believe the opportunity (and NewsRight’s real intention) lies in the latter: NewsRight has the potential to create revenue for any content creator large or small, and to enable a variety of new business models around content that simply can’t fly today because there hasn’t been a clearinghouse system like it.

(As background, here at Nieman Lab in 2010, I first described the potential benefits of a news clearinghouse months before AP announced the concept. Then after AP made public their plans, I described a variety of new business models it could enable, if done right.)

First, let’s have a look at some of the critics:

  • TechDirt, disputing whether NewsRight would actually “add value,” asked: “AP finally launches NewsRight…and it’s Righthaven Lite?”
  • InfoWars, posting a video talk with Denver radio talk host David Sirota, inquired: “Traditional media to bully bloggers with NewsRight?” In the interview Sirota said, “What I worry about is that it ends up being used as a financial weapon against those voices out there who are citing that information in order to challenge it, scrutinize it, and question it.”
  • GigaOm’s Mathew Ingram pointed out that while NewsRight itself says it will stay out of pursuing copyright infractions via litigation, “one of the driving forces behind the agency is the sense on the part of AP and other members that their content is being stolen by news-filtering services…and news aggregators.” Ingram concludes: “What happens when an organization like The Huffington Post says no thank you? That’s when it will become obvious how much of NewsRight’s business model is based on carrots, and how much of it is about waving a big stick.”
  • Nieman Lab’s own coverage by Andrew Phelps also focused on the tracking and enforcement aspects of NewsRight’s core technology.

NewsRight’s launch PR didn’t do much to dispel these concerns. CEO David Westin said himself in a video: “NewsRight’s designed…to make sure that the traditional reporting organizations that are investing in original journalism are reaping some of the benefits that are being lost right now.” And the company’s press release, quoting Westin, went no further that the following in hinting that there were new business opportunities enabled by NewsRight: “[I]f reliable information is to continue to flourish, the companies investing in creating content need efficient ways to license it as broadly as possible.”

Those traditional news organizations (29 of them, including New York Times Co., Washington Post Co., Associated Press, MediaNews Group, Hearst, and McClatchy) are the investors who scraped together $30 million to launch NewsRight. The Associated Press also contributed technology and personnel to the effort.

Given those roots — along with the initial PR, Westin’s own background as a lawyer, and the fact that NewsRight’s underlying AP-derived technology, News Registry, was explicitly developed to help track content piracy — it’s not hard to see where all the skepticism comes from.

But ultimately, if NewsRight is to be successful, it will have to create a new marketplace. It’s going to have to do more than trying to get paid for the status quo — that is, to collect fees from aggregators and others who are currently repackaging the content of its 29 owners. It can do that, but in addition, like any business, it will have to develop new products that new customers will pay for; it will have to bring thousands of content sources into its network; and it will have to enable and encourage thousands of repackagers to use that content in many new ways. And it will have to focus on those new opportunities rather than on righting wrongs perceived by its investors.

I spoke last week with David Westin about where NewsRight was starting out and where it might ultimately go. While he repeated the company mantra about returning value to the originators of journalistic content — “NewsRight is designed with one mission: to recapture some of the value of original journalism that’s being lost in the internet and mobile world” — it’s clear that his vision for NewsRight goes well beyond that. Here’s some of what we covered:

NewsRight’s initial target is “closed-web” news aggregators. Media monitoring services like EIN News, Meltwater News, and Vocus provide customized news feeds to enterprise clients like corporations and government entities, typically at $100 per month or more. Essentially, they’re the digital equivalent of the old clipping services. Currently, these services must scrape individual news sites, and technically, they should deliver only snippets with links back to the original sources (although whether they limit themselves to that is not easy to monitor). What NewsRight offers the monitoring services is one-stop shopping that includes (a) fulfillment: an accurate content feed (obviating the need to scrape, and eliminating uncertainty by always delivering the latest, most complete version of a story); (b) rights clearance; and (c) usage metrics. The monitoring services will have the option to improve their offerings by supplying full text (or they can stick with first paragraphs); the content owners share the resulting royalties.

While NewsRight currently must individually negotiate content deals, it’s working toward a largely-automated content-exchange system. Clearly, as NewsRight grows, there will have to be an automated system with self-service windows. “I hope that’s right, because that means we will have been successful,” Westin said when I suggested that would have to happen. The deals with private aggregators being worked on now all require one-off negotiations for each deal, both with the aggregators and with the content suppliers. That’s marginally possible when there are 800 or so content contributors to the network, but to be a meaningful player in the information marketplace, the company will need to grow to encompass thousands of content creators, thousands of repackagers, republishers, or aggregators of content, and many millions of pieces of content (including text, images and video) — requiring a sizable infrastructure and high level of automation.

Any legitimate news content creator can join NewsRight for free for the duration of 2012. “Anyone who generates original reporting, original content, can benefit from this. We’re open to anyone who’s doing original work.” Westin says. That includes not only newspapers and other traditional news organizations — it can include hyperlocal sites and news blogs. Basically, that free membership will bring you back information on how and where your content is being used. NewsRight’s system is currently tracking several billion impressions for its investor-members and is capable of tracking billions more for those want to use the service. (All this is rather opaque on the website right now, but if you’re interested, just click on the “Contact us to learn more” link on their homepage, and they’ll get back to you.)

Down the road, NewsRight is looking for ways to create new content packaging opportunities. Westin: “There is a large number of possible businesses [that we can enable]. We don’t have any of them up and running yet; it’ll be a better story when we’ve got the first one up. But I do envision a number of people who might say, ‘I wanted to create this product, dipping into a large number of news resources on a specific subject, but it’s simply been too cumbersome and difficult to do’…We should be able to facilitate that.” What he envisions is something that reduces the friction and the transaction costs in setting up a news feed, app, or site on a niche topic and allows a multiplicity of such sites to flourish — “new products based around the content that don’t exist now.” That includes personalized news streams — products for one, but of which many can be sold: “As we continue to expand News Registry and the codes attached to content, it makes it possible to slice and dice the news content with essentially zero marginal cost.”

While the initial offerings to private aggregators carry a price tag set by NewsRight, in the ultimate networked and largely automated point-to-point distribution arrangement — individual asset syndication — NewsRight will likely stay out of pricing. The “paytags,” or the payment information embedded in the Registry tags, will be able to carry information on a variety of usage and payment terms — not only what the price is, but nuanced provisions like time constraints (e.g. this can’t be used until 24 hours after first published), geographic constraints (to limit usage by regional competitors), variable pricing (hot news costs more than old news), and pricing based on the size of the repackager’s audience. Content owners would likely have control over these options, but there’s also the potential for a dynamic pricing model — something similar to Google’s auction mechanism for AdWords — in order to optimize both revenue and usage.

The NewsRight network could make it possible to monetize topical niche content that’s too difficult to syndicate today. There a lot of bloggers, hyperlocals, and other niche sites today that earn zero or minimal revenue and are operated as labors of love. The potential for NewsRight is to find new markets for the content of these sites. And general publishers like newspapers might find it profitable to jump into specialized niches for which there’s no local audience, but which might generate revenue via redistribution through NewsRight to various content aggregators.

Could that grand vision come to fruition? As I’ve pointed out before, a very similar system has worked very nicely for ASCAP and BMI, the music licensing organizations, which not only collect royalties for musicians but enable a variety of music distribution channels. (This is on the performance and broadcast side of the music biz, not the rather broken recorded music side.) Both AP CEO Tom Curley in launching NewsRight and Westin in discussing it refer to ASCAP and other clearinghouses as models — not just for compensating content creators but for enabling new outlets and new forms of content. NewsRight’s is purely a business-to-business model — it doesn’t involve end users. So the traction it needs will come when it can point not just to compensation streams from private aggregation services, but to new products and new businesses made possible by its system.

December 22 2010

18:00

Martin Langeveld: Predicting more digital convergence and an AP clearinghouse, coming in 2011

Editor’s Note: We’re wrapping up 2010 by asking some of the smartest people in journalism what the new year will bring.

As we draw to a close, it’s time for this year’s predictions from Martin Langeveld, which are the closest thing we have to a tradition around here. We just posted a look back at Martin’s predictions for 2010, a year ago. Here’s what he foresees for 2011; check back next year to see how he did.

Digital convergence: News, mobile, tablets, social couponing, location-based services, RFID tags, gaming. My geezer head spins just thinking about all this, but look: All these things will not stay in separate silos. Why do you think AOL invested $50 million or more launching Patch in 500 markets, without a business model that makes sense to anyone? What’s coming down the pike is new intersections between all of these digital developments, and somehow, news is always in the picture because it’s at the top of people’s lists of content needs, right after email and search. There are business opportunities in tying all of these things together, so there are opportunities for news enterprises to be part of the action. Some attempts to find synergies will work, and some won’t.

But imagine for a moment: personalized news delivered to me on my tablet or smartphone, tailored to my demographics, preferences, and location; coupon offers and input from my social network, delivered on the same basis; the ability to interact with RFID tags on merchandise (and on just about anything else); more and more ability not only to view ads but to do transactions on tablets and phones — all of these delivered in a entertaining interfaces with gaming features (if I like games) or not (if I don’t). In other words: news delivered to me as part of a total environment aware of my location, my friends, my interests and preferences, essentially in a completely new online medium — not a web composed of sites I can browse at my leisure, but a medium delivered via a device or devices that understand me and understand what I want to know, including the news, information and commercial offers that are right for me. All of this is way too much to expect in 2011, but as a prediction, I think we’ll start to see some of the elements begin to come together, especially on the iPad.

The Associated Press clearinghouse for news. Lots of questions here: Will be it nonprofit or for-profit? Who will put up the money? Who will be in charge of it? What will it actually do? It will probably take all year to get the operation organized and launched, but I’m going to stick with the listing of opportunities I outlined when news of the clearinghouse broke. I continue to believe that the clearinghouse concept has the potential to transform the way that news content is generated, distributed and consumed. (Disclosure: I’m working on a project with the University of Missouri to explore potential business models enabled by news clearinghouses.)

Embracing real digital strategies. Among newspaper companies, Journal Register will continue to point the way: CEO John Paton ardently evangelizes for digital-first thinking — read his presentation to the recent (Nieman-cosponsored) INMA Transformation of News Summit, if you haven’t seen it. Is there another newspaper company CEO who agrees with Paton’s mantra, “Be Digital First and Print Last”? I doubt it, because what it means, in Patton’s words, is that you “put the digital people in charge, and stop listening to the newspaper people.” Most newspaper groups pay lip service to “digital first,” but in reality they’re focused on the daily print edition. And that’s why audience attention will continue to go to new media unencumbered by print, like Huffington Post, the Daily Beast, Patch, Gawker Media, and hosts of others. So for a prediction: Journal Register will outsource most of its printing, sell most of its real estate, bring the audience into its newsrooms with more news cafes like their first one in Torrington, Conn. It will announce by year end that 25 percent of its revenue is from digital sources. It will also launch online-only startups in cities and towns near its existing markets, perhaps with niche print spinoffs. And finally, toward the end of 2011, we’ll see some reluctant and tentative emulation of Paton’s strategies among a few other newspaper groups.

Newspaper advertising revenue. An extrapolation of the 2010 trend (see my 2010 scorecard) would mean 2011 quarters of, say gains of 2 percent, 4 percent, 6 percent and 8 percent. But for that to happen, marketers would have to decide, during Q4 of 2011, to direct 8 percent more money into advertising in a medium that continues to report “strategic” cuts in press runs and paid print circulation, that is not finding fresh eyeballs online, that has an audience profile getting older every year, and that has done little R&D or innovation to discover a digital future for itself. With sexy new opportunities to advertise on tablets and smartphones coming along daily, why would any brand, retailer, or advertising agency be looking to spend more in print? My prediction is for a very flat year, with the quarterly totals (for print plus online revenue) coming in at Q1: +1.5%, Q2: +2.0%, Q3: no change and Q4: -3%. That final quarter will revert to negative territory primarily because of major shifts in retail budgets to tablet and smartphone platforms and to digital competitors like Groupon.

Newspaper online ad revenue. This has been a bright spot in 2010, with gains of 4.9 percent, 13.9 percent, and 10.7 percent so far. Assume another gain in Q4. But there are several problems. First, at most newspapers a big fraction of so-called online revenue is hitched to print programs with online components, upsells, added values, or bonuses. So there’s no way to tell whether the reported numbers are real, representing actual gains purely in ads purchased on web sites, whether there’s a lot of creative accounting going on to make the online category look better than it actually is, or whether it would even exist without the print component. Secondly, there’s a lot of new competition at the local level for dollars that retailers earmark for web marketing. Groupon, alone, will do close to $1 billion in revenue this year, compared with about $3 billion total online revenue for all newspapers combined. Add the “Groupon clones” like LivingSocial, and the social couponing business is probably already at about 50 percent of newspaper online revenue, and could well pass it in 2011, very much at newspapers’ expense. That’s why I predict newspaper online revenue will be: Q1: +5.0 percent, Q2: +3.0 percent, Q3: no change and Q4: no change.

Newspaper circulation. The trendline here has been down, down, down, every six-month reporting period ending March 31 and September 30. Complicating the picture: newspapers have been selling combo packages, ABC-qualified, where a single subscriber counts for two because they are buying (sometimes on a forced basis) both a 7-day print subscription and a facsimile digital edition. Lots of inflated and un-real circulation will show up in the 2011 numbers. But if we look at print circulation alone, which ABC will continue to break out, demographics alone dictate a continuation of the negative trend. My prediction: down 5 percent in each of the spring and fall six-month ABC reporting periods. That will mean that by year’s end, print newspaper penetration will fall to about one in three households (a long way down from its postwar peak of 134 newspapers sold per 100 households in 1946).

Online news readership. There are a couple of ways to look at this. For newspaper websites, NAA recently switched from Nielsen to Comscore because they liked Comscore’s numbers better. As a base measure, Comscore is showing about 105 million monthly unique visitors and 4 billion pageviews to newspaper sites, with the average visitor spending 3.5 minutes per visit. Prediction: all three of those metrics will stay flat (plus or minus 10 percent) during 2011. The other way to look at it is: Where are Americans getting their news? The Pew Research Center looks at this on an annual basis, and in 2010 showed online, radio, and newspapers more or less tied as news sources for Americans. Is there any doubt where this is going? In 2011, Pew might add mobile as a distinct source, but it will show online clearly ahead of newspapers and radio, with mobile ascendant.

Newspaper chains. Nobody can afford to buy anybody else, and no non-newspaper companies want to buy newspapers. There might be some mergers, but really, there are no strategic opportunities for consolidation in this industry, because there are no major efficiencies or revenue opportunities to be gained. Everybody will just muddle along in 2011, with the exception of Journal Register, which as noted above will move into adjacent markets with digital products and generally show the way the rest should follow.

Stocks. The major indices will be up 15 to 20 percent by September, but they’ll drop back to a break-even position by the end of 2011. Newspaper stocks will not beat the market. Others: AOL and Google will beat the market; Yahoo and Microsoft will not.

October 22 2010

15:00

AP’s “ASCAP for news” — new ecosystem, new revenue streams, new enterprise opportunities

In a speech on Monday, Associated Press CEO Tom Curley announced that the AP would soon set up “an independent rights clearinghouse for news publishers to manage the distribution and use of their content beyond their own Web properties.” (Speech text in PDF link)

The entity, to be designed with input from multiple stakeholders including AP and the Newspaper Association of America, will be established sometime in 2011. It will be a business-to-business clearinghouse, not involving transactions with consumers. Through the clearinghouse, originators of news content (ranging from local bloggers on up; this is not limited to AP members) will be able to distribute their content for digital publication by others, and receive back royalties of revenue shares, according to protocols yet to be determined. The clearinghouse will aim to facilitate a rapid, realtime means of negotiating rights for such content sharing, resulting in a large increase in the potential market for any particular piece of content.

As an illustration, a newspaper (or a broadcaster, or a local blogger) could release a piece of content — a story, a photo, a video — with tags indicating what it is about, who owns it, how and where it may be used, and how the content originator is to be paid. The content, distributed through any available channel, is picked up by another publisher, aggregator, or personalized news service and used in accordance with the attached rights and payments protocols. The clearinghouse monitors usage and payment obligations throughout the network of participating content originators and publishers, and settles transactions among them.

The plan Curley described is very similar to what I proposed in a post here in July, in which I asked, “What if news content owners and creators adopted a variation on the long-established ASCAP-BMI performance rights organization system as a model by which they could collect payment for some of their content when it is distributed outside the boundaries of their own publications and websites?”

Curley framed the opportunity in very similar language: “With the new rights clearinghouse initiative, we are hoping to give news publishers more tools to pursue an audience and capture value beyond the boundaries of their own digital publications.”

Although Curley’s speech did not mention the analogy with ASCAP (the American Society of Composers, Artists and Performers, which has since 1914 protected rights and collected royalties for songwriters and composers when their works are performed or broadcast), the AP’s own story on the announcement said the clearinghouse would be “loosely modeled” after ASCAP.

When I spoke about the project on Wednesday with Srinandan Kasi, the AP’s general counsel, he said that AP had studied clearinghouses in other industries, particularly in order to understand what considerations drove their choice of governance structure. (For those inclined to derail into griping about ASCAP’s perceived shortcomings, the analogy is not to ASCAP specifically; the point is that a clearinghouse for content will speed up and expand content distribution options, and create a new and efficient content marketplace — not that it will be exactly like ASCAP.)

In announcing the project at a meeting of the Southern Newspaper Publishers Association, Curley said it builds on several years of development by AP, beginning with the creation of a digital cooperative in 2007, through which 1,500 newspapers and broadcasters funnel content that AP parses, tags, and returns for use on local websites. In 2009, AP set up News Registry, a system that uses the tags to track where and how that content is being used on the Web and is now used by about 1,000 newspapers.

That tracking functionality, and the possibility of pursuing copyright claims for unauthorized reuse of nothing more than a headline, garnered plenty of criticism for the AP last year. (Even just a few weeks ago, Curley repeated claims of widespread “content scraping,” promising enforcement action against unnamed sites engaged in the practice).

New revenue opportunities for content creators

The real opportunity around News Registry was never in tracking and enforcement, but in helping to find new avenues for content distribution. As an analogy, in the retail world, the equivalent to content piracy is shoplifting and other forms of inventory loss from stores — a real problem, but generally not more than 1.5 percent of revenue and not worth more than that to prevent or reduce. A retailer’s first priority is increasing sales, by building new distribution channels, and the same should be true in the news publishing business, where content misuse is a minor revenue leak compared to the opportunities for broader distribution. AP’s clearinghouse is a big step in that direction.

The digital approach of most news publishers until now has been to seek to control their own distributions channels — their own websites, their own mobile apps, or individually negotiated syndication channels where they retain control. While successful in a few cases, that approach has generally limited access and revenue — for example, the average visitor to U.S. newspaper websites still spends only about one minute per day at newspaper websites, which is less than one percent of total online time.

In a more open system, content with appropriate tags for rights protection and payment provisions could travel the web (and the mobile world) in search of readers via multiple secondary channels, without the need for slow offline negotiation in every instance. The potential for piracy is still there, but the system can establish a network of publishers, aggregators and others who subscribe to the rights protocols for mutual benefit.

The clearinghouse concept grew out of research by Water Street Partners, a Washington D.C. joint venture consulting group engaged by NAA. According to Curley, “Water Street’s work concluded there was a business to be built on the AP’s News Registry work.” (Disclosure: As part of their work, Water Street’s Julian Bene interviewed me about my Lab ASCAP post.)

Kasi told me that Water Street “talked to a lot of people to independently check on various aspects of the things that were under development here or have been developed here or were being considered for development here, and to ratify the path on which we were going.”

For now, Kasi is in charge of the project. He serves as the AP’s chief legal counsel, but is also one of its chief strategists and will likely play a major role in shaping the clearinghouse. He defers answers to many questions about the planned entity’s design. For example, it might be nonprofit, or it might be for-profit: “There are models of clearinghouses that are similar constructs in other industries that have a variety of different structures — profit, nonprofit, non-stock companies, and so on. So there are different models and we’re in the process of analyzing each one of them to understand what drove a particular choice so we are better informed for our effort here.”

Kasi is careful to say that AP is not determining the ultimate governance arrangement, the operational details, or anything in between. Since AP is a content supplier itself, he said, “we thought that journalism would be better served by having an independent entity to provide some of these services rather than the AP.” Serving the greater good of journalism as a necessary ingredient in a democratic society is something Kasi referred to more than once — perhaps an indication that the thinking is leaning in the direction of a nonprofit setup.

While a story by AP reporters April Castro and Michael Liedtke, which was posted on AP’s corporate site, asserted that the clearinghouse would take a 20-percent cut of transactions, Kasi would not confirm that, saying that he was “not privy to the source” of that figure, and that “the number will be something that I think the market will determine.” Kasi also clarified that the clearinghouse will handle content across all platforms from web to mobile, contrary to a few reports that suggested it would focus on mobile only.

The clearinghouse will allow for experimentation on revenue models. It could “clear” payments based on a number of different models, with the method determined by the content originator, who might receive payment based on a share of advertising revenue, user payment revenue, or a royalty payment set by the publisher. Kasi said that ideally, the clearinghouse would provide the flexibility to allow market forces to determine which model would work best. Kasi agreed that a dynamic, real-time, variable pricing or bidding system, as suggested in my earlier post, is possible, but said he’d be concerned that “information may be in some instances essential to democracy, and you don’t want that to be subject to a bidding system that some people may be deprived because they can’t bid into that.” What he expects is a hybrid system that can support multiple pricing methods over time, but not necessarily “on the first day of operations.”

New ecosystem, new opportunities

I can see the clearinghouse spawning a wide range of new business opportunities, and Kasi (who calls it a “new ecosystem”) agrees: “The idea really is for the clearinghouse to bring that efficiency and the toolkit to everybody, regardless of scale, so that we can actually create some vibrant new packaging for example.” Among the possibilities I anticipate:

  • Larger, more robust aggregators of content streams like Daylife. This is also an opportunity for the AP itself, which is one of the reasons it wants the clearinghouse to be a separate organization. Channeling content flows through wholesaler portals of this kind helps ensure proper tracking of rights and payment obligations.
  • New “remixers” — aggregators and niche publishers who take advantage of the ability to publish full content units (stories, pictures, video, graphics) created by others but republished in new contexts, in new markets and to new audiences.
  • New “hyperpersonalized news streams,” created by semantic content-matching engines and presented in multiple formats on the web, as browser add-ons, and as apps. Some of these will be highly specialized enterprise solutions with a subscription revenue models; others will target consumer interests such as sports, weather, cooking, recreation, style, entertainment, travel, pets, sci/tech, etc.
  • Personally or socially curated news channels could multiply and flourish by being able to supply full versions of news content rather than snippets.
  • Many new content-creation opportunities for publishers. The remixers and hyperpersonalized news applications can be seen as akin to the explosion in cable channels since the 1960s, which resulted in a huge increase in video production and consumption (certainly unanticipated, considering the main worry at the time was from movie theater owners who figured “pay TV” would steal their audience). Far more local info can be fed into the content pools available to remixers and hyperpersonalized apps, because as consumers spend more time with these content providers, they will look at more specialized niche content just as they do on cable. For example, newspaper publishers could add more video versions of their stories; they could publish more local statistical information; they could get more traction out of the backstories in their archives; they could create more content on local businesses and artists (perhaps sourcing this from freelancers who share in the ensuing revenue); they could cover events over a wider region; they could provide more specialized coverage of businesses in their area, etc.
  • Clearinghouses — there can be multiple clearinghouses, not just one, that would become major businesses in their own right.
  • Clearinghouse optimization — the equivalent of SEO services: publishers could engage them to help maximize clearinghouse revenue by fine-tuning the rights and pricing parameters, just as there are specialists in Google and Facebook ad marketing for retailers.
  • Payment processing services — (assuming an eventual expansion beyond B2B and into business-to-consumer transactions) — this is a niche that most clearinghouses would outsource rather than do themselves, because of the complexities of interfacing with bank and credit card back-ends and later on with currency exchange issues.
  • Usage metrics — new kinds of distribution will require new kinds of metrics; an opportunity for existing as well as new metrics services.
  • Other service businesses would emerge or grow; for example: businesses that semantically tag content including audio and video as well as text and photographs so it can be fed into the system; advertising networks that focus on supplying local as well as national ads to the remixers and content streams, including real-time priced ads.
  • And the big unknowns: additional opportunities that are created as all of the above are impacted by the very rapid growth of mobile in all its forms, by location-aware services, by social couponing in all its forms, by the addition of item-level RFID tags to virtually all retail inventories (now beginning), the proliferation of QR codes (already saturating Asia), and the emergence of a viable mobile payment systems using point-of-sale proximity sensors or bump technology — all of which could be ingredients in turbocharging a direct commerce layer on digital platforms.

Put all this together and there is no end to the content and commerce opportunities that are enabled when content can travel freely in search of consumers, with revenue flowbacks at multiple levels.

(A final disclosure: I am working with faculty members at the Missouri School of Journalism on opportunities to research, flesh out and develop some of the new opportunities around the clearinghouse concept.)

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