Douglas Milewski (dacuteturtle) wrote,
Douglas Milewski

Bezos Bought the Washington Post

I get why Bezos bought the Washington Post. It makes sense.

"What?"  you say.

I'll explain it. Amazon has this program called Amazon Prime. You pay money into it to get fringe benefits from Amazon, including free shipping, borrowed ebooks, and streaming video. Why not extend that to the news? If the program is successful and you have extra money because of it, funding a world class newspaper becomes much easier. You see, you have a successful subscription scheme, and that pays for the paper.

In other words, Bezos figured out how to collect subscriptions. That's been the trick that the papers haven't been able to solve. The more value that he can provide for those subscriptions, the more likely that people will kick in and pay them, and that increases revenue stream further. Think of this as content cable. You pay for a big package, and those payments get spread out out the various enterprises that are part of the package.

I think it's damned observant.

Once funding is done, you can think about how to transform your purchase into better supporting your medium.


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