Tuesday, September 29, 2009

Digital Distribution as a Competitive Advantage for Media Companies

The trouble with the digital world

The issues confronting many media companies in the world of internet, in general, and news aggregation, in particularly, is well known by now. The traditional business model of setting up the infrastructure to serve a particular geographic region is no longer seem as a compelling advantage.

Physical distribution of digital content as an advantage

Just thinking out loud. At the most basic level, while internet is considered "virtual", there is still a physical/geographic limitation on the actual routing of bits and byte. For example, by providing coverage outside of homes and offices in a region, this would deter others from setting up parallel infrastructure. Furthermore, by linking into regional advertising base, a media company can provide very fine-grained data for advertisers which would be worth a lot more than just general IP based information.

In other words, could this be a form of digital distribution that is highly defensible?


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