News Corp’s acquisition of the Skiff e-reader platform has been widely reported in the last few hours. It’s a completely sensible move from an organisation which understands that it has to control every part of the news chain if it is to extract as much value as possible from content, advertising, and user data.
Of course we’ve been here before with MySpace – a distribution network, database, and content platform that Murdoch acquired to howls of derision – then applause, when an enormous advertising deal was brokered with Google – and derision once more as MySpace failed to meet targets stipulated by that deal.
Skiff, however, is a rather different proposition. Interestingly, News Corp have bought the software but not the device it was supposed to run on. That may be because it was already developing one.
I’m not sure whether it is a wise move to compete with the technical expertise and experience of Amazon and Apple – but you can bet that, commercially, News Corp has a very strong hand.
One point to note is that Apple’s business model is primarily based on selling devices; Amazon’s is mainly about selling things; but News Corp is mainly about selling the intangibles of advertising and content. That may give them cause to discount their technology heavily as a mass-market offering to tie people in, and acquire customer data.
News Corp is a network, not just a series of holdings. And the latest acquisitions suggest they’re not going to let someone else control their market without a fight. The question is: how soon will they put the gloves on? And how hard, and long, can they fight?
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