Free News Unsustainable, Says Warren Buffett

Koreantoast writes "Warren Buffett, whose Berkshire Hathaway recently purchased 63 newspapers and plans to purchase more over the next few years, noted during an interview that the current free content model is unsustainable and will likely continue pushing toward more electronic subscription models. This coincides with moves by other newspaper companies like Gannett and the New York Times, which are also erecting paywall systems. Buffett notes that newspapers focusing on local content will have a unique product, which would succeed even if they lose subscribers, because their services are irreplaceable. Is this the beginning of the end of 'free content' for local news?"

Comments

He doesn't get it

[Vintermann]

I'd wager a lot of the price of media companies now reflects their control, not their profitability. Sure, making money by selling news is great, but the power to set society's agenda, and frame events for the history books, is infinitely more valuable.

If you think of that as the raison d' etre of the big media companies, it becomes obvious why they offer "news" free on the internet. Also, that Buffet will pay a premium for these shares...