Distributors Turn to Content for Revenue and Brand Growth
Distributors are becoming content producers. That’s the message I’m taking away from the purchase of the Washington Post by Amazon’s Jeff Bezos. As distributors reach the limits of organic growth, they are turning to the delivery of original content through their existing networks as a path toward additional revenue and expanded brand value. It’s a logical move. Amazon started as a book distributor and now publishes original books. Amazon joins distributors YouTube, Google, and Netflix, all of which have started to produce original content as well as delivering client content. There’s a lot of leverage for distributors, from financial to reputational, in making this change. It’s another example of innovative technological disruption causing a significant shift in business models based on news and information. We should be getting used to that idea by now.
John Howell, Editorial Director