Tuesday, June 3, 2008

A blog reader that passes along revenue

The Problem

Today media assets are consumed increasingly on the internet. Movie and TV screenwriters were on strike for three months to get their share of revenue from the internet. Newspaper subscriptions are constantly falling as customers are getting their news on the internet.

As people and revenue moves from traditional mediums of distribution to the internet, businesses used to traditional mediums find it hard to adapt to the newer technology. A service that bridges the gap between the old and the new is required.

Blogs are one of the internet mediums that are beginning to replace newspapers. Blogs provide easy access and are updated on the latest events. They also allow anyone on the internet with a voice to express it. Another good quality about blogs is that they are publishable via a RSS feed. This allows the user to read multiple blogs in one location.

Journalists at some newspapers have even started their own blogs. However when they publish their RSS feeds, they only publish a partial feed. The reasoning behind this is that they believe revenue can only be generated by users visit their site and actually see and click on their adds. But since most people use an aggregator to read blogs they will never visit their site. Businesses who do not understand internet revenue creation methods use this technique to secure their revenues.

The Solution

Since most of the aggregators do not have an advertisement system, they do not generate revenue and thus cannot pass on this revenue to the blog writers, the content creators. A blog aggregator which passes along revenue to the content creators will bridge the gap between the old revenue models and newer internet based models.

The main source of revenue will be a percentage of the ads clicked on. If the company receives ten cents for each add clicked on, it will pass on the majority of it to the content publisher and keep a small part for the business.


Venkat S. Rao said...
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