"The content exchange "provides a single address that content re-sellers converge on and feed off …Economic laws of increasing, rather than diminishing, returns mean that every additional unit sold yields a higher profit-rather than a declining one. The pie is getting bigger.- Sam Vaknin, author of, The Disintermediation of Content

There has been a sea change in the world of content on line.

In the beginning content on the Net had an immediacy which was riveting. Much of it was excellent and because barriers to entry were low, niche markets sprang up with very specialized content which could satisfy a wide range of interests. Surfers were happy but web site owners and content providers were in search of a business model which could support them. By then, it was clear, surfers didn't want to pay for content, as least in the form it was currently offered.

Distribution vs Destination

The content delivery format was transformed when ebusiness discovered it could leverage content to enhance its sales channel. Large, well funded companies, who could afford big ad bucks to attract users, began to look to content providers to incorporate their expertise into a web site which could then monetize those eyeballs by selling users their products. For example, a giant sports retailer, might want to incorporate the content from a small fly fishing site or content provider, to attract a demographic seeking expert advice and information on various aspects of fly fishing. The site would provide that content, then switch the end users' attention to fly fishing rods and paraphernalia, expand it to tents and lanterns, and maybe even upgrade it to Land Rovers. When an ecommerce transaction was fulfilled, the site would profit and be in a position to share a portion of any revenue produced with the fly fishing content provider, in some financial arrangement or another. It was a reasonable exchange in which both parties made a bit more money.

Content went from having the difficult task of having to earn enough money to create a destination site, to the very reasonable task of providing information, expertise and insight on a site which already had traffic.

Behind the scenes, one of the key drivers of this new model was the development of new and powerful software, which allowed for seamless syndication of content.

Destruction of One Type of Aggregator Models

Content aggregation companies were formed to fill the content supply pipelines for various ecommerce companies. However, new pressures have emerged for this type of company. As the Net and new software drive continuous change, the role or one type of intermediary may disappear, to be replaced by another.

The future looks uncertain for some of the biggest aggregators of content. According to a Red Herring report, "ISyndicate, once hailed as one of the most promising customized content delivery plays and backed by some of the biggest names in the technology and entertainment sectors having raised $97 million from companies like News Corporation; Microsoft; Bertelsmann; NBC;Scripps Ventures; Labrador Ventures; Hambrecht and Quist;Infospace; and Vignette.

"iSyndicate's business model seemed asure-fire winner when it launched in 1997. But today,companies and individual consumers can get the same personalized content delivered free through Yahoo and others". In the rush for an increasing supply of content, there has also been a tendency to put up content which is less highly individualized, fewer fly fishing commentary pieces, more of an endless stream of news items, which are not very well differentiated. Isyndicate is in the throes of downsizing and searching for another business model, hoping to sell it's technology rather than its content, although it says it will continue to do both.

What went wrong? Perhaps nothing went wrong so much as the Net continued to evolve and transform. Powerful new software is enabling new and more efficient business models, creating competitive advantages for doing business in a different way


The New Wave - Content Exchanges - Eliminating Middle Men, Raising Quality

The newest wave of the net, enabled by powerful new software and a concept elegant in both its simplicity and efficiency, is the emerging content marketplace.

A number of sites are introducing content exchanges built on various business models. Some make money on ad revenues, others let content providers charge directly for content, then take a commission on each sale. Undoubtedly, some of these models will prove more profitable than others, and once more there will be a cycle of destruction and creation and the best form for content exchanges emerges.But the central concept of a content exchange seems destined to be a winner.


As Sam Vaknin, author of, The Disintermediation of Content, InternetContent.net, notes "content brokers ( like Isyndicate and Screaming Media) are relationship managers." But perhaps content providers don't really need relationship managers. A company which offers a content exchange steps back and offers content providers a platform where powerful software can perform the tasks a broker offered before, providing not only content syndication technology but also, updating content across an entire syndication platform and logistical support: a means to offer various content packages, uniform and customized pricing, consolidated sales reporting and transaction auditing, customer support" all in a user friendly, automated environment.

"Content creators can thus concentrate on what they do best: content creation, and reduce their overhead by outsourcing" other functions. "The content exchange "provides a single address that content re-sellers converge on and feed off …Economic laws of increasing, rather than diminishing, returns mean that every additional unit sold yields a higher profit-rather than a declining one. The pie is getting bigger."



Content Estores across the Web

Middlemen content sales organizations are scrambling to change their business models, either by licensing their syndication technologies or attempting to plant content estores throughout the web.


Web publishers are getting in on the action too, as new Net companies emerge which offer publishers the ability to put a store on their own Web site to sell their own syndicated content,
perhaps augmented by other publisher's content.


"As this tectonic shift reverberates through the whole distribution chain, retail outlets are beginning to transact directly with content creators… The borders between the types of intermediaries are blurred", Vaknin reports." Barnes and Noble has, in effect, become a publisher. Many publishers have virtual storefronts. Many authors sell directly to their readers, acting as publishers. The introduction of "book ATMs"-POD (Print On Demand) machines, which will print every conceivable title in minutes, on the spot, in "book kiosks"-will give rise to a host of new intermediaries."


Endless Cycle of Creation and Destruction, Recreation

Once more, only the best of the new breed of content exchanges will survive. The cycle of creation and destruction will continue with platforms for content being constantly created, then deconstructed, transformed and recreated again.

The current content exchange model benefits both content providers and consumers, alike, as it allows providers to make a decent living and by giving consumers, not editors and aggregators the ultimate choice, content will be more efficient, tailored to what consumers want. High quality content will therefore be available for those willing to pay for it. Although some aspects may continue to evolve, the best of this trend, bringing content closer to users, will persist in whatever transformational state.