CBS’ CEO Leslie Moonves says his network is becoming a “one stop shop” for news and information that is now competing effectively against newspapers. Of all the recent bad news for newspapers, this may be among the worst.
To survive in a world without paper editions, online newspapers will need high rates for online ads, but news sites of network conglomerates will not. The conglomerates can spread their news production costs across all of their media platforms and properties, including their sports and entertainment divisions. In many cases they will not even care whether or not they recoup their news production costs, since much will have advertising value for their other properties. The network news conglomerate in the end may be what keeps rates down and newspapers out.