Saturday, October 08, 2005 4:00 AM
A bit off topic, but as has been reported throughout the blawgosphere and beyond the last day or so,
AOL is going to buy Weblogs, Inc. for something around $25 million. What is Weblogs, Inc.? A weblog network business started by blogger and entrepreneur
Jason Calacanis last year.
Mr. Calacanis' business model included cobbling together a collection of bloggers, adding some commonality to their blogs so that it would resemble a content network, and then sell advertising space on the blogs. Part of the genius of the idea, in my mind, was that by pooling the blogs, he was able to market and promote a single, large entity to advertisers. As the Reuter's article notes, "Weblogs is one of the more successful attempts at weaving together a network of individual blogs to attract a stable of advertisers and cash in on the blogging phenomenon."
Here is the thing. Well-written, timely weblogs are really topical online columns. Further, with the simple syndication technologies integrated into weblogs, it is very easy and very inexpensive to integrate weblog content into other online properties. What Weblogs, Inc (and now apparently AOL) realized was there is money to be made in producing content. Initially, in selling advertising, and perhaps down the road, through paid syndication to other online media entities or exclusive, paid subscription models.
In the last month, Yahoo! hired its first reporters and announced a new stable on online columnists for Yahoo! Finance. Is Yahoo! a media company? Apparently, it is. And, apparently, it wants--and is willing to pay for--unique content to help build another web property on which it can sell advertising. The media playing field seems to be expanding and even as we all complain about information overload, this growing media seems to be seeking more and more diverse content.
Somebody has to produce this content and pull it together so that it could be promoted, marketed and sold. Weblogs, Inc. seemed to understand that early in the game and is now getting its reward.