The New Media Trend (i.e. rapid segmentation of content) relies on Technology Companies for continued expansion. Google, Yahoo, Microsoft, etc benefit from the technology they use to distribute content because they monetize those channels with advertisements.Today in the Financial Times, Microsoft’s Associate General Consul, Tom Rubin was quoted:

“Companies that create no content of their own, and make money solely on the back of other people’s content, are raking in billions through advertising and initial public offerings . . . [And Google] systematically violates copyright, deprives authors and publishers of an important avenue for monetising their works and, in doing so, undermines incentives to create”

Mr. Rubin’s comments about Google and YouTube raise an interesting point. I don’t think anyone doubts the copyright issues of YouTube. But, what happens when you generate revenue from content that is owned by others?

Technology Companies face departing content owners, or face high partnership costs

Already, we’ve seen examples of this:

Large content owners will either create their own technology solutions or the technology companies will need to give content owners very favorable terms to stay on their networks. As the industry gets more competitive from the technology side, the industry will face slowing growth and increasing partnership costs. Creating vertical market channels by acquiring content creators will reduce partnership costs and maintain exclusive content relationships.

Technology Companies will realize that they need to own content

Owning content is a dramatic shift in thinking for Technology Companies. Google is already trying to create exclusive relationships with small media companies. Owning content is starting to happen, even if it is on the smallest scale.