In “tech” it is increasingly more about the content than the technology. Apple makes the “stuff” we read, view, or hear it on, but the device is for the content. Content Seeks Out Web Portal – 12 Years Earlier: A dozen years after AOL and Time Warner merged in large part due to AOL perceived as the portal to technology future, the trend appears in the reverse direction. Back then I was in contact/discussions with Gerald Levin, Ted Turner and Time Warner team (regarding possibility of “Goodwill Games” being hosted in Bosnia & Herzegovina – and that did not happen in part due to the heavy dynamics of the AOL/Time Warner merger). As the last century was ending, no one was certain what the Internet would bring. Some placed a high price on access to what was envisioned as a virtual world that would overshadow traditional media. In the context of the AOL/Time Warner merger a high premium was paid to gain access to what many perceived as the AOL portal into the web. “Worst Merger Ever”? In hindsight it has been panned as one of the worst mergers ever, at least from the perspective of Time Warner shareholders. However, it was not because instincts regarding the future of the Internet were wrong. Rather, the Internet has continued to astound in its development. Content though is being evidenced as important as ever on the web as it was in old media. In fact with distribution made easier and cheaper over the net, content has an even broader application, and not just geographically and/or demographically, but also by depth and mode. Media and tech comes full circle now because AOL needs content - and web identity. The Huffington Post is not a particularly unique brand – it is one of leaders in online political platforms. It has credibility and a recognizable brand name, but is it worth the approximately $315 million that AOL paid for it? - certainly a premium on basis of current revenues generated. Perhaps ironically, AOL is now paying for The Huffington Post as portal to ongoing generated content – however it is not the billions that Time Warner effectively paid as access to the web and world of new media a dozen years earlier. Evolving Content Business Model – Globe Goes to Web for News Content: Beyond the revenues and immediate content AOL is acquiring a business model that is cost efficient, forward looking and has proven attractive to a broader audience/user base – most Americans now go to web to read the news/political discourse and around 1/3 go to web to view and not just read their news. The numbers are comparable globally, and even higher in many other developed countries. Professional v Audience Generated Content: It is not content though that is lacking now. Quality, professionally produced content rather than audience generated is now deserving and receiving a premium. There is much content now out there. Almost anyone can upload an article, video or song. It has crowded the higher quality material. You Tube is successful in terms of volume, billions of clips uploaded but it is a jungle made treacherous for those producing, searching and advertising. The model is best described as driven by the dream of a “viral hit.” The Huffington Post addressed the consideration by establishing relationships with proven activists, academics and writers who had or were developing an audience. Film Annex has employed a similar model among filmmakers, from directors to writers to editors to actors to producers. Curate Content: As importantly, content needs to be organized - curate is the term one might borrow in how a museum is managed. The Daily Beast is one valid example of a new media business model in this context. Identifying and summarizing content for the audience is part of dealing with the new chaos. Search engines may be dominant but not necessarily the end of the development process. Greater efficiency and user satisfaction is still an objective to be attained. Complementary Medium: While the web brings together video, audio and written content, the harmonization of such on the same platform is till in development. Rather than disparate, these mediums are complementary. What may have not been possible a decade earlier on your television screens or printed newspaper is now being experimented with and applied on the web screen. Audiences seek out such multi-mode presentations both for variety and more complete experience/information. The Huffington Post had started following the model of a more traditional newspaper on the web. One might suspect that as part of the AOL acquisition this will continue to evolve. Brand & Vision: As much as purchasing The Huffington Post, AOL also acquired the leadership of Arianna Huffington and the online community. Ms. Huffington through the merger was designated to manage all content for AOL. This is designed to provide strategic vision/leadership but also a recognizable and credible brand linked to the web.(PHOTO Above of projected AOL-The Huffington Post organization chart). Community: Online community has become an objective spurred by the growth of social media as Facebook, Twitter and Linked In. It may be easier though to gain initial “fans” or “followers” than keep them. Again, compelling content and interaction is needed to maintain, grow and engage the web community. With so many options now and developing, evolution with spurts of revolution is essential to compete for attention and loyalty. “Occupy Wall Street” is an example of a brand become dominant in a matter of days. For community branding, it is not just about the marketing glitz and selling a product but a sense of vision/purpose and credibility with your community. Audience as Editor: One question may now arise: why do not audiences just flock to traditional media that have established their own web sites? Many do as the quality and breadth of coverage is supported by the infrastructure already in place. However, that is also the perceived problem. Production costs and traditional media ways of doing business are still more designed for TV screens, printed papers/magazines drawing huge audiences to justify such infrastructure. This also makes it more difficult to develop/complement alternative views and take advantage of segmentation in the online audience. The audience now will decide what it wants to see and with what editorial perspective rather than the broadcaster or editor. Is It All About the Advertising Online? Pay or subscription models are being experimented online. However, three potential negatives for the success of such: ---Costs bound up with the built up operations of traditional segments of such brands (NY Times and Wall Street Journal are examples) is a driving force in seeking out such subscription revenues and presuming that audiences will continue to pay a premium despite growing options and alternative views/presentations online; ---Will subscription models inhibit innovation and complementarity of medium applications? ---While online sales of everything from cars to beauty products are commonplace, will audiences accept sale of information? (The Huffington Post acquisition by AOL perhaps evidences that perhaps it may be better to leverage free information/news/views rather than sell it on subscription basis). Segmentation of Audience: More effectively segmenting and targeting an audience is part of the online business model rather than trying to appeal to some notion of mainstream and conforming. Advertisers as well as online visitors demand it. Rather than shun peripheral issues and views, it may be an even more effective way for advertisers to seek out and target the demographics they want – and it is no longer just about the presumably most desirable 29 to 45 male or something like that. It is also one area where traditional media moving online tend to be limited – they are drawing online the same audience as on television or print. That is why so many traditional media are partnering with online established media enterprises only a fraction of their size and investment. AOL Purchase of The Huffington Post Prove Justified? Will AOL’s purchase and price for The Huffington Post prove justified or will it become perceived in similar light to the AOL-Time Warner merger? The later comparison is invalid as the effective purchase price paid by Time Warner was in the billions rather than millions. However, AOL probably needed the acquisition of The Huffington Post considerably more than Time Warner did a dozen years earlier. AOL in the last year has been on the edge of survival as it had fallen off the cliff of relevancy. It now has a fresh branding and an opportunity to evolve employing the skills and vision of an organization and its community. Related ARTICLE - Internet Security, Openness & Privacy-Forum Concludes, - diplomaticallyincorrect.org/films/blog_post/internet-security-openness-privacy-forum-concludes-by-ambassador-mo/35706 By Ambassador Muhamed Sacirbey Facebook – Become a Fan at “Diplomatically Incorrect”

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