The slow but steady decline in the business model of traditional media is well understood given that in most countries, India included, the bulk of advertising revenue is ending up in the hands of Google and the social media giants. One last hope for traditional media was that if some of the marquee names in traditional media ended up in the hands of plutocrats then these people might be willing to cut large cheques which would allow high quality journalists to do their thing. That hope died when one of the richest men in the world refused to let the Washington Post endorse any of the candidates in the US presidential elections. The FT reported: “Jeff Bezos, the world’s second-richest man, is facing criticism from staff at The Washington Post following the newspaper’s decision not to endorse a presidential candidate for the first time in 36 years.

The newspaper’s editorial page staff had written an endorsement of Kamala Harris for US president, but it was not published following a decision by Mr Bezos, the Post’s owner, to change its policy on endorsements, according to an article in the paper.

The reversal of decades of policy comes less than two weeks before the presidential election, in which Ms Harris and former president Donald Trump are running neck-and-neck, according to polls.

There were tensions between Trump and Mr Bezos during his time in the White House. Amazon filed a lawsuit in 2019 claiming it had been denied a $US10 billion US defence contract because of “escalating and overt pressure” from the then-president. The Defence Department later awarded the so-called Jedi contract to a rival bid from Microsoft.

Will Lewis, The Washington Post’s chief executive, outlined the reasoning behind the policy change in an opinion article in which he acknowledged that it could be read as “an abdication of responsibility” but added: “We don’t see it that way.””

Here’s Bezos’ rationale for the decision – Opinion | Jeff Bezos: The hard truth: Americans don’t trust the news media – The Washington Post

It is becoming increasingly clear that the implosion of traditional media will create new opportunities to make money from providing high quality news & opinion to wealthy niche audiences. The FT and NYT are probably the best-known global practitioners of this business model. It is a matter of time before someone in India builds a successful franchise along similar lines.

That leaves the small matter of who will provide accurate news & unbiased views for the masses given that the masses won’t be in a position to pay for either of these things. Two candidates come to mind: the state and/or crony capitalists.

Note: Microsoft and Amazon forms  part of Marcellus’ Global Compounders Portfolio, a strategy offered by GIFT City branch of Marcellus Investment Managers Private Limited. Hence, we as Marcellus, our immediate relatives and our clients may have interest and stakes in the mentioned stock. The stocks mentioned are for educational purposes only and not recommendatory.

If you want to read our other published material, please visit https://marcellus.in/blog/

Note: The above material is neither investment research, nor financial advice. Marcellus does not seek payment for or business from this publication in any shape or form. The information provided is intended for educational purposes only. Marcellus Investment Managers is regulated by the Securities and Exchange Board of India (SEBI) and is also an FME (Non-Retail) with the International Financial Services Centres Authority (IFSCA) as a provider of Portfolio Management Services. Additionally, Marcellus is also registered with US Securities and Exchange Commission (“US SEC”) as an Investment Advisor.



2024 © | All rights reserved.

Privacy Policy | Terms and Conditions