Murdoch vs. Google

The graph, published in todays Economist, illustrates very clearly how different business models are now, which are seen as having potential to grow.

Some time ago I wrote “MCI, Microsoft and Murdoch are now sitting in one boat”. Previoulsy separated markets have (e)merged. Yet, it has never been as visible as this year. Google’s stock keeps on rising and rising and old media is staring to buy into in the internet space. 74 year old Murdoch pushes NewsCorp to position itself for the internet, while Bertelsmann announced it would back a European response to Google together with French state run companies – this is European corporatism at its best. First it was McDonalds, then Hollywood ruining our minds and bodies now it is Google. Astonishingly old media with all its content and massive infrastructure seems still not to understand that power lies not within ownership of content, but through enabling cheap, fast and convenient access….How come that PirateBay run by a bunch of Swedish students has now one of the most popular websites on the planet and looking at the torrents (mainly movie files) tells much more about popular demand, than any market research company ever could. This is where the likes of Murdoch should look at, but let’s hope they don’t. Isn’t is brillant that two twenty somethings with no business plan and model at all could create the fastest growing media company ever? And one key lesson here is: the business model is the service. Its free, its good, it attracts attention = then you can build a business and not vice versa.