The Simple Reason Why The Future Of News Is Bright

Posted: Feb 12 2014, 6:45am CST | by , Updated: Feb 12 2014, 9:25am CST, in News | Misc

 

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One of the most contrarian views I’ve held for many years (but which is becoming less contrarian by the day) is that the future of the news business is bright.

The argument typically goes like this: over the past few years, the technology industry globally has spent many many billions of dollars fundamentally changing how we consume content and creating new content distribution platforms. I am here mainly talking about post-PC devices and social networks. Now that these new platforms exist, by definition, they will need something to fill it out. (And no, user-generated content won’t be the totality of it.) This is an amazing opportunity.

Über-VC and über-twitterer Marc Andreessen puts it even more simply (aggregating from several of his tweets):

Total addressable market for news by 2020: ~5 billion people worldwide; straight extrapolate from # of cell phones -> smartphones globally. (…) Market size [is] dramatically expanding—many more people consume news now vs 10-20 yrs ago, many more still in 10-20 yrs. Big, big deal. (…) Market size=destiny.

This is exactly right. Because of increased competition and a fundamentally different business model, many will suffer. But overall, the market will not only remain sound, but is expanding fast.

Fundamentally, in the near future, billions of people will consume news 16 hours a day. This remains a fantastic business opportunity.

By the way, Andreessen is such a proficient tweeter that there’s a blog turning his tweet-rants into blogposts. For his (very valuable and, in my view, dead-on) views on the future of media, head here, here and here.

SEE ALSO: Marc Andreessen Is Using Twitter Like A Real Human, And It’s Amazing >>>

Source: Forbes

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