Former tech-stock analyst turned Business Insider editor in chief and CEO Henry Blodget today celebrated his company’s third birthday with something of a swan song for New York Times employees.
“Even if the New York Times “transitions” successfully to digital,” Blodget wrote in a long analysis of the newspaper business’ prospects, “its news-gathering costs will likely have to shrink by at least half and probably two thirds. Those who support their families based on a salary from the New York Times Company should probably take note of that.”
In addition to touting Business Insider’s competitive wages, performance-based bonuses and “excellence in the medium,” Blodget says that digital revenue cannot sustain a traditional newspaper cost structure. He outlines an in-depth convincing case (based on the Times‘ earnings statements and some credible estimates on its various business segments) for the inevitable decline of newspapers — even those as impressive as The New York Times.
On the other hand, Blodget’s celebration of Business Insider’s prospects doesn’t dwell too much on the fact that his organization trucks a great deal in culling and repackaging reporting from other outlets — including the Times.
Commenter Ghost_of_29 says:
Kudos on the anniversary, Henry. I enjoy the site, the speed of the information, the liveliness, the reader feedback, and the freedom of reminding you what a mistake you made in firing Carney.
I’d like to hope that the future of journalism isn’t a squad of computer jockeys sitting at folding tables, cutting and pasting other people’s work, but maybe it is. Whatever the future holds, I hope BI remains a part of it.