JupiterResearch Counsels Online News Sites To Act Like Networks, Not Just Content Distributors

Business Wire, August 27, 2007

NEW YORK -- JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, reports that although content producers have preferred to control their own distribution on the Web, it will not be a successful strategy for most producers in the long run. Outlined in a new report "Networked Media: Thriving In An Intermediated World," JupiterResearch suggests content producers must acknowledge that intermediaries, such as blogs, portals, and aggregators, make important connections between content producers and their audiences.

Content producers have struggled to manage their relationships with intermediaries on the Web since the beginning of the medium. But intermediaries have become a crucial link between producers and the audiences they need. For example, portals have become the single most important source of news on any medium for online users aged 18 to 24. Some 57 percent access news via portals compared to 21 percent gathering information from a cable news site. And online users now trust portals nearly as much as traditional news media.

"Not only must content producers embrace intermediaries to serve their own audiences and reach out to new ones" explained Barry Parr, Analyst at JupiterResearch, "They should exploit opportunities to become intermediaries for their core audiences."

According to the report, the emerging role of intermediaries on the Web represents a challenge and an opportunity for content producers. The challenge is that they will lose control of their distribution systems. But because those who try to retain control of their distribution will likely fall behind their competitors, it is in their best interest to learn from progress made by well established portals and blogs and incorporate best practices into their sites.

"To thrive on the Web, news sites must become more network-focused and aggregate content from other sources while distributing their own content through intermediaries," said David Schatsky, President of JupiterResearch. "By paying closer attention to the tendencies of the end user, these sites will be able to evolve and meet the needs of a wider online audience."

The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For details on JupiterResearch's methodology, visit www.jupiterresearch.com/bin/item.pl/methodology or email press@jupiterresearch.com to request a detailed methodology statement. For additional information on this report or JupiterResearch's News & Information research service, visit www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupiterresearch.com.

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com.