Following Kevin Sites in the Hot Zone, Yahoo! takes another step in its transformation into original content provider (see Wall Street Journal – free). Though they say they have no intention of becoming a full-fledged news service.
Yahoo’s move suggests increased specialization and atomization of news media on the web, as full-fledged news services find it increasingly hard to stay afloat (as the recent wave of staff cuts at major papers suggests). As newspapers agonize over how to make more money from their websites (e.g. Times Select), companies with diverse revenue bases (like the big search portals) will find it a lot easier to deliver the news. But it will be a stripped down service, heavy on features. Can the news media as public trust survive this process of atomization? Or was the idea of a public trust always a fairy tale?